From this dilemma he was saved by the receipt of a general permission from the Colonial Office, toward the close of 1852, to deal with the gold revenue in the same manner as ordinary revenue.  By placing this fund at the disposal of the Colonial Legislature, the Home Government not only removed a great grievance and relieved the hands of the Lieutenant-Governor from the shackles previously laid upon them by the Colonial Office, but it took a substantial step toward the end that was now acknowledged on all sides to be the ultimate outcome of the new discoveries; viz., the introduction of responsible government.  The same despatch contained a still more important concession, authorizing the Lieutenant-Governor to devote the remaining part of the land revenue—­viz., that arising from sales and pastoral licenses—­“to the purposes rendered urgent by the present crisis.”  As this fund was jealously reserved by the existing constitutions of the Australian colonies, and devoted, under the provisions of the Crown Land Sales Act, exclusively to the purposes of emigration and public works, it will be seen that the Colonial Office took a strong step in sanctioning its diversion.  But it must be observed that the expenditure of this additional fund was placed exclusively in the hands of the Lieutenant-Governor and his Executive Council, acting independently of the Colonial Legislature.

With this assistance, the Lieutenant-Governor struggled on amid increasing difficulties till the spring of the year 1853.  By this time the agitation against the license fee had reached an alarming height, for the first successes of the new discoveries had passed away, and, although the export of gold continued to increase, it was by no means at its former rate nor in proportion to the increase of population.  At the beginning of September, 1853, there were said to be nearly seventy thousand persons living at the Victorian gold-fields, and many of these, in all probability, earned very little more than mechanics employed in settled work.  Hence there was a fair ground for an orderly agitation against the amount of the fee; but, unfortunately, the diggers preferred violent measures.  There was some excuse for them.  They were not represented in the Legislative Council, for they had sprung into existence as a body since the passing of the Act of 1850, and, though a measure had been introduced with a view to giving them the franchise, it had not yet received the assent of the Home Government.  In the mean time, therefore, they could not, through their representatives in the Council, effectively criticise either the existing law or its administration.  With regard to the latter, there was obviously room for complaint, for the immense increase of business had compelled the Government to appoint an inferior class of officials, and some of these, at least, succumbed to the strong temptations of their positions.