ships had rendered a rapid decrease in the length of the voyage from Europe a practical certainty.  From the moment that the genuineness of Hargraves’s discoveries was placed beyond doubt a swarm of pilgrims from all parts of the world set their faces toward the diggings.  Many, perhaps the majority, of the arrivals were totally unsuited for the actual work of mining.  Some of these turned to other pursuits in the neighborhood, and, in no small number of cases, did far better than the diggers whose gold they received.  But thousands turned back in despair after a few days’ experience of the hardships of the life; so that, almost from the first, there was an enormous traffic to and fro, and strong division of parties upon the gold question.  An extreme view of the effect upon population may be obtained from a comparison of the statistics of Victoria at the close of the years 1850 and 1855 respectively.  At the former date the population was under seventy thousand; at the latter, it was upward of three hundred thousand.  But no other colony increased to anything like this extent during the gold rush.

The first care of the Government at Sydney, on receiving the official report of the existence of gold, was to decide upon the attitude to be assumed toward the diggers.  It was abundantly clear that the establishment of mining industries would mean a great increase of expense to the Government.  It was equally clear that, as the law had been declared over and over again in the colony, unauthorized digging on Crown land constituted a trespass, for which the digger was legally responsible.  But the Governor was wise enough to see that no threats of prosecution would deter men bent on digging in unoccupied lands, even if it were possible to preserve the lands of private owners from forcible intrusion.  The “squatting” question had demonstrated that, beyond a certain point, the theory of Crown occupation of waste lands was liable to break down.

So the government advisers suggested a compromise.  Falling back on a still older feudal doctrine, they asserted the indefeasible right of the Crown to all gold found either on private or public lands, but recommended that licenses to dig should be granted on easy terms, which would have the double effect of providing a revenue and of preserving an acknowledgment of the Crown’s title.

Acting on this advice, Governor Fitzroy, on May 22, 1851, issued a proclamation forbidding all persons to dig for gold on any lands without license, but expressing the willingness of the Government to grant licenses at a fee of thirty shillings a month to diggers on Crown lands.  For the present, the Governor refused to allow digging on private lands without the owner’s consent.  The proclamation also announced that no license would be given to any laborer or servant unless he could produce a certificate of discharge from his last service.  At the same time the Governor established the practice of appointing special commissioners for the gold-fields, charged with the administration of the licensing system and the general maintenance of order in their respective districts.  He also strengthened the police force by every means in his power, and then awaited developments.