The Sun.
London, England, 1858-03-09 00:00:00

AUSTRALIA.

By the arrival of the Columbian we (Times) have
received our private correspondence and tiles of
papers from Melbourne to the 16th January, and
from Sydney, New South Wales, to the 6th
January.
The following is the letter of our Melbourne
correspondent

MELBOURNE, J. 16.
The Simla arrived on the Bth inst., bringing not
only her own (the November mail), but also the
October mail, delayed by the Emeu's disaster,
which you will have learnt before this time.
Our local Parliament re-assembled on the sth
inst., after the Christmas recess. We had rather a
hot Christmas, more fitted for cold salmon and cu-
cumber, cold lamb and salad, cider cup and iced
clarets, than the orthodox beef and plum-pudding,
and yet we are so imitative that our banquets, with
the thermometer at 100 deg., are carefully adapted to
a northern winter. I only wonder that people do
not light a sea-coal fire, and shut the window -
shutters, to make believe it is a real Christmas.
It would, however, have required a stronger
imagination that of Charles Dickens's Marchioness
to " make believe" that 100 degrees in the shade
is a real thorough-bred Christmas, though it
was cool compared with the Wednesday before,
when we had a hot wind 110 deg. in the shade,
and 139 deg. in the sun, aggravated by bush fires in
many parts of the country. In February, 1855,
I measured the heat of the hot blast. The ther-
mometer was insulated in a corner formed by the
portico of a stone-built house. The wind was due
north, blowing hard, and the time noted (11 a.m.)
the north-east sun's rays had not touched the corner
in-question. The temperature of the blast was 1.17
deg. Fahrenheit ! But to return to Parliament.
Our present Constitution was framed by a Council
consisting of one-third nominees and two-thirds
elected members. The latter were elected when the
population of the colony was short of 80,000 souls.
There was a property qualification for members, and
the right of suffrage was limited. The consequence

was that the demand for reform was coeval with
the introduction of the now Constitution in Novem-

ber, 1855.

The number of the old Council had.

been twice increased, first from 30th 54 and secondly
to 66, by the introduction of representatives of the
mining districts. It was by the Council so increased
that the ballot was carried ; so that the first elec-
tions in September, 1856, under the new constitu-
tion, were by secret suffrage. The next reform was
the abolition of the property qualification (2,0001.
or 2001. a year in land,) by Mr. Duffy's act. There
the matter remained until the close of the late
session, when, in the electoral act then passed, the
suffrage was extended to all men of 21 years of
age—" manhood" suffrage it is here called. The
act contains another clause giving a plurality of
votes to freeholders, and around the metropolis it
is quite practicable for a man having a 50/. freehold
in several electoral districts to give about 10 votes
in the said districts in one day.
Ministers have now introduced three Bills : one
to shorten the duration of Parliaments from five to
three years ; another to increase the number of
members and alter and equalize the electoral dis-
tricts on the basis of population ; and a third to
regulate elections, the novel and important feature
of which is a provision for the representation of
minorities. The Bill for altering the electoral dis-
tricts and increasing the number of members to 90
(from 60) proceeds on the principle that the popu-
lation of the colony being 450,000, and the
number of members being 90, 5,000 is the mean
number which belongs to one member. Frac-
tional differences cannot be avoided, and from
the great territorial extent of some of the
thinly-peopled districts a large margin is neces-
sary and unavoidable. Some districts have three
members assigned to them, some have live, and
a few have seven—all odd numbers, in order to
admit of the minority-representing scheme. The
plan is that in districts entitled to three members
the electors shalt not vote for more that two candi-
diclates ; in districts having five members, for three;
and in districts having seven members, for four;
and it is considered that the remaining one, two,
and three members, as the case may be, will repre-
sent the minority. In the debate on the second
reading this scheme was generally accepted by both
sides of the house. In committee I think it will
be further modified by reducing the larger districts
so as to make the division uniform—i.e., 30 dis-
tricts returning three members each, equal to
99 members, voters being allowed two votes
only. I believe this measure will be carried
by a very large majority ; but I doubt whe-
ther its working will fulfil the expectations of its
most sanguine supporters. It is also clear that
under the present system minorities are in fact re-
presented. Thus Conservative A and Radical B
stand for a district having 1,000 voters. B carries
it by a majority of 1. So far the 499 who voted for
A are not represented ; but Conservative A tries
his fortune in another district against Radical C
and beats him by a majority of 1 also. Here the
adverse opinions of the two districts collectively are
equally represented. I do not remember that in
Democratic America the Whig minority is
ever unrepresented, and if the scheme go
beyond the mere representation of the minority,
and operates to give a majority in the House
to the minority out of doors, it will be pro-
ductive of evil ; but with universal suffrage I do
" a good third " will be of
the opinions of the
majority, though they will
not conceive it will work to that extent. Some
members who come in
the minority,
(where squatting prevails,
awphpilaereinntslyomehe representativesdistrieo of
for instance) in all probability the man at the head
roaflthmeipnoolrlitwyi,llvt
encid thee in
third with the gene-
ral will represent the
majority of the country, though the minority in
his district. It has been tried at the Cape, but
l
r opinion
not long enough to ascertain its working, so that
here, as elsewhere, it must be deemed an experi-
ment.

Another very important measure, which has
passed the second reading and has been commit' ed,
is au Education Bill. Hitherto, we have had two
systems at work, managed by two board 4, with a
double machinery of secretaries, clerks, and inspec-
tors namely, the Denominational and the Na-
tional or Secular system. In the schools under
the Denominational Board religious instruction
is mingled with secular teaching in any way and to
any extent desired by the several denominations. In
the national schools four hours of secular instruc-
tion are required, but certain hours are set apart
during which the priest or minister or religious
teachers approved by the parents have access to
the children of their respective persuasions. The
new bill seeks to bring the whole under one board,
and to make the whole of the public schcols of the
country approach more nearly to the national aye-
tern than they do at present. There is also what is
called a compulsory clause ; but it does not go to the
extent of the Prussian system, which enables a police-
man to catch a boy and take him—not to a police-
court as a "rogue
and vagabond," but to a school.
It merely adds the gentle pressure of an increased
rate upon the parent who neglects or refuses to
send his child to school. This bill passed the
second reading by a
majority of 33 to 11. It is
chiefly opposed by the Roman Catholic members in
the house and by the priests out of it ; but the lay
members of that Church are nut unanimous. Some
persons are sanguine enough to suppose that the
bill can be so modified, without materially impair-
ing it, as to obviate or soften the opposition of the
priests and their followers, but I have no such
hope. They will accept nothing but the unalloyed
denominational system. They state that it is
an essential article of their religion that re-
ligious services should pervade secular instiuc-
tion, and that it is contrary to their religion
to separate secular instruction from devotional
practices. But I believe the bill may be made satis-
factory to a great number of Roman Catholic
parents. We hare a large National Training School
in Melbourne, with 714 scholars at the last report.
The Roman Catholic bishops and clergy withhold

their sanction from it, and yet it numbers 131
Catholic scholars. According to the proportions
exhibited by the census returns, the number of
children of the Roman Catholic faith should be
rather under 180 ; that the school numbers as many
as 131 shows how small has been the influence of
the withholding of the bishop and clergy's counte-
nance.

STATE OF TRADE,
MELBOURNE, SATURDAY, JAN. 16.
During the whole of the month since the departure of
the December mail there has been a great depression of
trade without any very disastrous occurence. There was one
considerable failure, that of a Mr. Riorden, which illustrates
the too great facility with which a trader can get credit,
and the rapid rise and fall of trading firms. He came here a
few years ago, and it is said without much capital, and yet
by successful operations about 12 or 15 months ago he was
believed to have a capital of some 35,0001. He then com-
menced speculating largely, and was aided in so doing by
a house here, who imported for him, he finding the means
of closing each transaction by cash and bills before the bills
of lading were handed over to 'Jim. These transactions
have extended to nearly half a million. If Riorden's ex-
pectations had been fulfilled—especially if flour had risen
as much as it has fallen—he would have made a large for-
tune; as it is, he has lost his previously acquired capital
and his creditor's money to boot. This great cast for
wealth or ruin is far too common in all these colonies, and
indicates rather a low tone of mercantile morality.
" The "4th of the month" passed over without disaster,
and up to the arrival of the mails there was great quies-
cence, but with almost a suspension of business, caused by
the delay of both mails. Thee news of the disastrous state
of trade in England and America has increased the gloom
here, and there is a whisper of further failures. Still Ido
not think the pressure will be verygreat or of long duration,
unless, indeed, some of our largest houses should be pulled
down by English failures. It has been authoritatively an-
nounced here that the failure of Denuistoun's house will
not affect the house here, the Melbourne house not being part-
ner s of any of the other firms, and being themselves solvent,
but they have been large shippers of gold (46,000 oz. for
instance in one parcel), against which they are said to
have drawn.

It is only necessary to look over the tabular statements
of the Argus to infer a very considerable depression fur
some time to come, and when I have added a few correc-
tions this will be more conspicuous.
In the first place, our imports during the last year have
exceeded our purchasing power, as partly indicated by the
value of imports and exports respectively. I say partly,
beea,use our gold is valued too high—not with respect to its
sale-price in London, but with respect to its purchasing
power. It is always valued at 80s. per ounce, whereas its
purchasing power, deducting charges, does not exceed 765.
per ounce. This converts the stated excess of imports
(833,0001.) into 1,278,0001., by the addition of 445,0001.,
over-valuation of gold.
It is true that in 1856 our exports exceeded our imports
in value by 1,370,366/. ; but if we apply my correction of
4s, per'ounce on 3,000,000 ounces, it would reduce the sur-
plus of purchasing power by the sum of 600,0001. or to
770,366/. Deducting this excess of export in 856 from the
excess of imports in 1857, 1,278,0001., we have an insuffi-
ciency of purchasing power on the two years rather over
half a million—quite enough to depress trade, and yet not
such a deficiency as to protract the depression over a long
period.
There is also a temporary stagnation in the wool market,
which cheeks the normal demand for imports of all kinds.
But by far the greatest cause of decreased demand fur im•
ported goods arises from the extent to which money has
been invested in building, land, and joint-stock under-
takings. These have pretty well absorbed the accumula-
tions of the last two years, which I believe were very
considerable. Even nom money is readily found for land
purchases, and building enterprise, though checked, has
not yet ceased.

Your readers will recollect that in the early part of last
year I expressed an opinion that our export of gold in 1857
would be about 1,000,0001. short of that of 1836. This is
the case. The export of 1,56 exceeded 3,000,000 oz. ; in
1857 it was 2,757,047 oz. ,valued at 80e. poroz. 11,028,1881.
Though this affects our external trade it must not be
taken to indicate a decline of prosperity. We now produce
much that we imported in the early days of the golden era.
Iron and wooden houses were imported largely—we now
build of brick and stone, and that too on a more commo-
dious scale than formerly. Timber is extensively manu-
factured into boards at the saw mills around Melbourne.
We raise some 2,000,0001. worth of farm and garden pro-
duce which had no existence in 18534. There is conse-
quently much greater comfort than there was throughout
the population, though we do not count our income by
quite so many pounds.
It is not to be doubted that the practice of English
houses to consign for " sale and returns" is ♦ery injurious.
It baffles the calculations of the most prudent importers ;
and every consignor who has helped to glut the market
thinks himself cheated by the dismal account sales he gets.
This is especially the case with British manufactured
goods not suited to the taste of the market. They are
shipped from home because they are not there saleable.
They are equally unsaleable when they arrive. If the mer-
chant has made an advance, he sells to iodise his advance.
If not, he holds for the consignee's orders. At last the
latter gets tired, gives an order to realise, and a "slaughter"
sale by auction teriniba,. es the account. For this no one is
to blame but the speculative consignor, who has not suffi-
ciently informed himself of the market.
Our net gain of population from abroad was in 1457,
41,647, which makes our population on the 31st Dec. last,
457,000.

NEW SOUTH WALES.
(Front the Sydney Morning Herald of Jan. 9.)
MONEY .A.N H SHARE MARKET.

Since our last summary, dated Dec. 9, 1857, the share-
market has been almost inactive, and prices have remained
stationary. The half-yearly meetings of the Commercial
and Joint-Stock Banks aid General Assurance Company
will take place towards the end of the month, and it is an-
ticipated that the dividends declared, with the exception
of the Commercial Rink, will be the same as last half-year.
During the year 1857, which has just run its course, there
have been several marked fluctuations in the stock and
share market. At the commencement of 1857 there was a
downward tendency, and prices ruled lower than they had
for some time previously; bat in April a better feel-
ing was evinced, and shares of all the dividend-paying
companies, as well as Government debentures, rose consi-
derably. This advance was well maintained un,l October,
when, owing to the tightness in the money-market, com-
bined with the news from England of the high rate of in-
terest ruling there, the market began to droop, and the
prices of all securities, notwithstanding their dividends
have been fully equal to those before declared, have given
way ; and in some instances the fall in prices, as compared
with the quotations of the 31st December, 1856, show a
decline of from Si. to t/, per share. Commercial Bank and
Union Bank shares are 51. to Cl. per share lower than last
year. Bank of New South Wales remain at the same price,
451. per share. Australian Joint-Stock Bank and Gaslight
Company have advanced IJs. per share. Australasian Steam
Navigation Company and Hunter River New Steam N..vi-
gation Company are 10s. per share lower. General Assur-
ance Company have improved 108. per share, and New
South Wales Marine ss. per share. Government deben-
tures of all descriptions are dull of sale. In April, 1b57,
there was a great demand for this security, and the Inter-
minables advanced to ono per cent. premium. Since that
period, however, the market has been glutted by the con-
tinued issues of the Government and Interminables, and
are now almost unsaleable. Those due in 1860 are quoted
at 16, and the 20 years' Debentures at 96. The great
demand for money in England has no doubt affected
the price of those securities ; but there is also the
fact that the Government want to borrow 400,0001.,
which sum was proposed and authorised by the Legislature
to be raised by Treasury bills bearing 6 per cent. interest.
Until this loan is effected we cannot anticipate any im-
provement in these securities. Besides these causes, the
step taken by the banks of allowing interest on deposits
has materially added to the flatness of the stock and share
market, as it is believed by many that these institutions
will not be able to pay the handsome dividends they have
been doing the last two years.
The rates of discount have continued throughout the
past year at 6 per cent. for bills having 95 days to run, 7
per cent. fur 125 days, and over that time 8 per cent.