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The realists in opposition applauded each tariff and marketing scheme, but, mistrusting American methods with labour, made haste, by control of state-administrations and by pleas before wage-fixing tribunals, to distribute income more favourably for their supporters.

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With thinned ranks they came back, aware that the danger had been repulsed at heavy cost. In this access of wealth, Australians one and all talked of making their country more self-reliant.

Clever men stampeded the democracy into measures seemingly designed to make our economy a hermit one.

The sense of a permanent and secure world was shaken. Keynes, "the most interesting question in the world (of those, at least, to which time will bring us an answer)" was "whether, after a short interval of recovery, material progress would be resumed, or whether, on the other hand, the magnificent episode of the nineteenth century was over." At first it seemed that a prosperity greater than that of pre-war times had come.

During the campaigns of 1915 to 1918, in numbers as great as the Commonwealth could muster and partly equip—numbers whose going heavily checked the work of farms, wharves and mines—Australians helped other Britons and their Allies to meet the armed challenge. Home and external markets moved from strength to strength, with little faltering even in 1920-21 when Britain plunged into the long depression that grips her still.

Without restraint upon external borrowing, no economy can continue sound. Unlucky delays in re-victualling the little white population made equal rations an established rule of early Sydney. It confirmed in economic childishness that first company of marines and convicts.

But there is no inconsistency between continued activity in international trade and financial self-reliance. Nor is there reason to doubt that all-round progress in the arts would come unforced from a policy of fruitful trade and international good feeling, and would make Australia greater in the councils of the nations and a stronger member of the British Commonwealth than she is to-day. Neither criminals nor warders make a positive contribution to the social economy of production and exchange.This book would not have been written but for the encouragement given to the author by Professor Ernest Scott, as Australian Adviser for the seventh volume of the Cambridge History of the British Empire. In early Sydney this special department of British life was separated, isolated and given the appearance of a new community.The author's thanks are also due to the Syndics of the Cambridge University Press for their permission to incorporate in this work the substance of his contributions to that volume. But it proved difficult to introduce into it the main activities of a self-providing society.It was peopled first by outcasts, rebels and adventurers, stiffly governed for two generations by British officials, and to this day is largely financed by the British middle class.For a full century the little communities were outworks of the industrial revolution in Britain."The world's uncultivated areas are mainly wheat-producing land." Geographically, with her wheat lands near the coast, Australia is better situated to supply an industrialized Asia with foodstuffs than are the inland prairies of America or the steppes of Russia. Thus the harbour formed by their submergence had escaped silt. But the plain behind lacked a fit scene for immediate agriculture, the hard labour to which the convicts brought by the First Fleet had been condemned; and it was walled off from the rest of the Continent by the Blue Mountain cliffs. Australia, Physiographic and Economic.] The only denizens of the virgin land were primitive hunting tribes who, by restriction of their numbers and by elaborate taboos, had adjusted their hunting to the supply of game.

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