# Banking Under Difficulties/Chapter 5

CHAPTER V.
Discovery of Forest Creek and Bendigo.
(Extracts from M‘Combie’s “Victoria.”)
“The reports which daily reached Melbourne from Forest and Fryer’s Creeks were so favourable that those who were able to resist the mania when Ballarat first became popular now prepared to take their chance, unable longer to oppose the almost universal epidemic which then received the name of the ‘yellow fever.’ The numbers on the road to Mount Alexander far exceeded those who had been observed wending their way to Ballarat; the whole route was literally crowded with passengers, many of whom were denizens of the Australian colonies, who began to be attracted to Victoria by the fame of her inexhaustible mines. The term ‘Mount Alexander’ was indiscriminately applied to Forest, Fryer’s, Barker’s, and Campbell’s Creeks, and even to Bendigo and the Loddon. The great ‘finds’ of gold were, however, first discovered on the old golden point on Forest Creek and on the hills and gullies adjoining. The first diggers on the creek found a seam of gold almost on the surface of the ground, and running across one of the small hills, but the precious metal was chiefly dug out of the small gullies which ran between the hills into the main creek. There were two methods of obtaining the gold at this period—washing the soil to the depth of about half-a-foot on the surface, and sinking pits in order to search for pockets of the precious metal, which was often found above or in the pipe-clay and slate.
“The Bendigo diggings were discovered a few weeks after, and attracted crowds of persons by their richness. Those who were on the goldfields in the latter portion of 1851 and the first six months of 1852 could scarcely have failed to obtain treasure. In many of the richest gullies on Bendigo, such as Eaglehawk, Long, Ironbark, Pegleg, &c., and in Golden and Adelaide gullies on Forest Creek, nearly every claim was auriferous. In the first named few parties who were fortunate enough to possess a claim on the best ground, dug out less than three to six hundred ounces. But even at this period many went away without obtaining any gold. Those persons either could not maintain themselves on the goldfields, or were compelled by hunger to leave them in order to obtain employment, or they could not reconcile themselves to the privations and hazards which diggers have to undergo. Many ​had a severe struggle before they obtained their first lucky claim, but the employment was not without its charms, for the excitement and hope of ultimate success cheered on the most desponding. When the unsuccessful diggers at last found the object of their search, it was often painful to contrast their frantic delight with their former melancholy and dejected appearance. It is to be feared that few of them could bear prosperity with that equanimity of temper which is so necessary to the health and peace of mind of such as follow an exciting pursuit like gold-digging.
“The change from profound despair to the extreme point of delight was to be witnessed any day on Forest Creek or Bendigo. In no other pursuit perhaps is perseverance so necessary as in gold hunting, and many poor fellows worked on sinking pit after pit in every likely spot without success, while others falling upon treasure almost immediately, and without any apparent effort, became suddenly rich. The ignorance of many was no doubt the cause of their failure, as they neither knew where to find the gold nor how to know auriferous soil when they struck upon it, and in their anxiety to bottom their claims they not seldom threw away the richest stuff, which would have paid them well to wash. The diggings at Forest Creek and Bendigo were very different in character and appearance from those already described at Golden Point, Ballarat. The tents were distributed along the course of the creeks, and occupied a wide extent of country. The fair sex had moreover in many cases accompanied their husbands and taken their children with them; indeed, those families who had arrived from the neighbouring colonies were under the necessity of adopting this course, as it was impossible to obtain accommodation in the towns which had now become over-crowded by the new arrivals.
“On the 15th August, 1851, His Excellency issued a notice in the Government Gazette proclaiming the right of the Government to all gold in Crown lands, and declaring mining without license illegal. A fee of 30s. was imposed upon every male on the goldfields. The miners generally paid this sum, but even in the early phase of the diggings—when gold was tolerably plentiful—it was felt to be most unequal in its application and generally complained of. The Government Gazette of 1st December contained a second proclamation announcing the determination of the executive to double this unpopular license fee.
“It further intimated that all persons on the goldfields, such as tent-keepers, cooks, and others, would be required to take out a license on the same terms as those actually employed in digging.
“This rash step aroused a torrent of indignant remonstrance over the whole colony, and the Government brought on a crisis, the diggers positively refusing to pay the increased fee, which ​indeed in the majority of cases they were utterly unable to get together, as hundreds were compelled to abandon the diggings from inability to maintain themselves.
“The Executive recalled the objectionable proclamation, and the excitement was allayed, but this infatuated conduct of Mr. Latrobe made the diggers aware of the weakness of the Government, and the prestige which alone could maintain order in such a society was utterly lost.
“The gold commission was established towards the close of 1851. It possessed a chief commissioner in Melbourne, and a staff of commissioners and assistant-commissioners upon the diggings. They resided in the camps on the different goldfields, and were responsible for the police, the collection and transmission of the revenue, and the gold deposited for safe custody. They weighed and gave receipts for all the gold about to go by escort to Melbourne, packed it in saddle bags for the escort horses, and issued the licenses to the diggers. They had to hear and determine all disputed claims between the miners; they usually discharged the functions of public magistrates; in a word, they were arbitrary ministers of the Executive, who were quite irresponsible to Parliament, and were intrusted with uncontrolled power on the diggings.”