The sun., 1894-05-06
wHYAUSTRALIA" "SLUMPED.s
SHE PRosPERED so rove FEAT Hnn
BOOM sEkLEED TO BURsTIN@.

/ HOO3A "AS1AD ~ bOHAAhN"s
Buoyss ny Goia D,~sipe, eheep, H--p~r--
tion, sud Goet Crssit she cot Cs.e.stsA
| asa Ovsraia Thtres-1e fonths AGE Case
the Connpse-Now she Hs Rseuperssiss.
MELBOURNE. Australia, April 2.-Econo omi.ts
and theorists OF every kind and IN every place
have been searching for the reason OF the re-
markAble collapse. the commercial. nnsncisL
| and general disaster which overlook and al
most overwhelmed Australia a year and half
| ago. and many and ingenious have been the
explanations offered. The tremendous slump
which occurred in this country was perhaps
the most remarkable Of economic events In
recent times
From the time Of the first rush Of tho qoid-
seekers to this continent until two years ago.
clear up TO the moment OF the collapse the
country has been regarded. at least By the
British people. az averitable commercial and
social CtopiG- The manner in which some Of
the greatest economic problems OF the times
and tho most difficult sociologio questions
were taken uD by tho colonial Rovernments
and the people. and apparently set in the line
Of solution aud settlement of hand was .
source OF wonder and admiration, and England
was wont to regard her Australian colonies a.
narvcls Of rapid yet perfectly sound develop
mont. When the sudden crash and collapse
came. which shook the whole fabric OF the
colonies to the foundations. and brought such
almost universal conditions Of ruin. not only
England. but the whole world was astounded.
In the past year or so Australia has been
more than ever prominent. but It has been
principally because OF her broken banks her
armies OF unem ployed, her decreasing reve-
nues, and hor diminishing population.
Tho senrchers for explanations Of the col.
lapse have mostly been led astray by its mag
nitude to Imagine that the causos have been
Intricate and manifold. and Australians have
read with melancholy amusement the learned
disduisitions on tile economics OF the situation
which have reached them from the press OF
the world. The real explanation In simple
Of this. city, aftor m0urnfui survey Of the
htate Of affairs here to-day aud q look back
GyS5 na s.Hst .SS p 'ys; Sssa past few
This has been the especial folly OF the Aus
GnH ID shs eSOnS 3. eo% TsSS
concerns and as communitiea
The big nansona Of the cities, built At for
owners overdid IT," and are now living In
frame houses 10 the less fashionable ouartera
over -construeted. the Govern m ent .over~esti-
mated. and the country oyerreachsd Itself
Of 9sss good S poST nssd.a
demonstration. The oountrys credit was OK
vidual enthusiasts Hooded the country with
Ss int c an sIcss as:e
ton OF capital.
,Australians thought one of their world-mis-
their arid deserts blossom as the rose. Irrira-
it, soSi ss
lect with reckless enthusiasm. and set out to
do In y1"1 what .nS tS could only bs don.
10 century" borrowed money wss IsvisSl1
once; Works were projected and begun that
was an expensive haste followed By dissp.
Any p,ospsst Of Seneai from The schomss
able TO meet their obligations. and the col
.t.fS SyGsSd ns% scheme
with an .enthueinsm which =, unfailingy
and % e"sryeodS W.ntes @ shares 'f in minss
Ihe market Tor the scrip went up g enormous
ssfs Of sS s.S 'rk e are
Thea real estate became tho universal craze.
anh Values were inflated trtm mendousiy, and
In this craze the working people were perhaps
the Inevitable collapse came here. too and
many thousands Of Australian artisans are
II" eiti.s overdid Sptf as n0 bad a. did tn. gen.
eral government. and tho individuals Docks
com com odate the whois @ com@ercs GS % oi xUstpaiis x
and dry docks big enough for navy. II In
nfty years sufficient com N eroe developed in
this port to md use for the accom- IN odation
already provided. II would be q notable growth.
Millions OF money were spent providing Tor .
superb future, and the necessity Of provision
for meeting present requirements OF interest
snd dssss "ors
but no one SCENE to see the Inconsistency OF
providing splendid accom- mmodation for oom-
N cree and then taxing commerce 30 high Il
would not como to tho port.
Melbourne became unique on account Of fits
tarin and its shipping accommodations Both
Everything about the city was Considered
and handled on the same grand scale. Plans
'or sewerage for tho city were made. based on
The idea that the population OF the city would
ione. The market accom- m odAtion became Ia
promptly built large enough for city at isast
iitures were so great that merchants cannot
he interest on the money spent In bullding
abroad that blinded people % what they nov
zee was the simple logic OF the way they were
The fever seems to have passed nov. but Il
AXE Australia long time TO recover from
Ehat was Tor go long the especiAl folly OF the
country the folly Of OVERRIDING thinga" Dur
4 revenne. and the popuIstion hal q smaller
Increase than In any ysArisl lnce the developmsnt
u the country began. Thousands Of people
ave left the colonies. and In some thers has
There are still many thousands OF unsm-
'loyed, and the pros poets for the coming anti
,odean winter are not bright But Il 10 be-
to mas and xa.
raliAns arc hopefully looking forward TO
peedy return Of prosperity, BUT it is pretty
ertain they want no more boonA