July to October 1851. Governor Latrobe to Lord Grey, the Secretary of State. 10 October 1851. It is quite impossible for me to describe to your Lordship the effect which these discoveries have had upon the whole community, and the influence which their consequences exercise at this time upon the position and prospects of every one, high and low. The discoveries within our bounds, coming as they do at the close of the wet season, in localities in comparative proximity to our towns, exercise a far wider influence upon our excitable population than did the discoveries in New South Wales upon that colony, under the advantages of a larger population and the greater remoteness of the gold field.
Cottages are deserted, houses to let, business is at a stand-still, and even schools are closed.
In some of the suburbs not a man is left, and the women are known for self-protection to forget neighbours jars, and to group together to keep house. Fortunate the family, whatever its position, which retains its servants at any sacrifice, and can further secure the wonted supplies for their households from the few tradesmen who remain, and retain the means of supplying their customers at any augmentation of price. Drained of its labouring population, the price of provisions in the towns is naturally on the increase, for although there may be an abundant supply within reach, there are not sufficient hands to turn it to account. Both here and at Geelong all buildings and contract works, public and private, almost without exception, are at a standstill. In the country your Lordship will easily conceive that, viewing the season at which these circumstances have occurred, and the agricultural and particularly the pastoral interests at stake, that this is the commencement of the shearing season, and that shortly the harvest will call for labour, great embarrassment and anxiety prevails.