MURRAY CUSTOMS TREATIES.-Two kinds of traffic had to be dealt with in connection with the collection of customs on the Murray. First, there was the traffic across the river between the colonies of New South Wales and Victoria. Then there was the traffic up and down the river, which, when the navigability of the Murray had once. been established, soon became considerable, and which involved the three colonies of New South Wales, Victoria, and South Australia. Immediately after the adoption of the New South Wales tariff of 1855, an agreement was made between the Governments of New South Wales, Victoria, and South Australia, that no duties should be collected on goods crossing the Murray, and that duties on goods carried up the Murray from South Australia, for consumption in New South Wales or Victoria, should be collected by the South Australian Government according to the South Australian tariff, the proceeds being divided equally between New South Wales and Victoria. These arrangements (In Victoria, by the were validated by statute in each colony. Customs Regulation Act, 1854, 17 Vic. No. 17; in New South Wales by the Murray Customs Duties Act, 1855, 19 Vic. No. 21; in South Australia by the Murray Customs Act, 1856, No. 6.) Accordingly, on 1st November, 1855, trade between New South Wales and Victoria, At that time the balance of across the river Murray, became free. trade was with New South Wales, and the freedom of the Murray was conceded by Victoria at the request of New South Wales. DissatisNew South Wales complained that by faction, however, soon arose. the adoption of the South Australian tariff on Murray-borne goods Victoria complained she was losing revenue-especially on tobacco. that equal distribution of the duties collected by South Australia was not fair, seeing that most of the Murray-borne goods were for consumption in Victoria. In 1857, after much correspondence (Votes and Proc., L.A. of N.S.W., 1862, ii. 647), during which an assimilation of tariffs was unsuccessfully mooted, a new arrangement was made, by which the New South Wales tariff was adopted as that which the Government of South Australia should levy on Murray-borne goods. This arrangement was sanctioned in New South Wales by the River Murray Customs Act, 1857, and in South Australia by the Murray Customs Act, 1857, No. 2, and remained in force until 1864.

UNIFORM TARIFF PROPOSALS.-In March, 1862, the Colonial Secretary of South Australia opened a correspondence with the other colonies on the subject of the desirability of a uniform tariff in all the colonies. (Votes and Proc., Leg. Ass. of N.S.W., 1862, ii. 647.) He expressed the opinion that, until the means of communication improved, complete Federation would be impossible. Meanwhile, as one step towards union, his Government intended to seek legislative authority for admitting free of duty the produce of any colony which made a reciprocal concession; and he suggested an intercolonial Conference at Melbourne to consider the question of a uniform tariff. The proposal was favourably received. Mr. Duffy, still intent on a Federal Union, promptly obtained a fourth Select Committee, which brought up a report urging that the Conference on a uniform tariff would afford a favourable opportunity to consider the larger question of Australian Federation. This report was adopted by both Houses of

the Victorian Parliament, but met with no response from the other colonies. The Conference, after some delay, met at Melbourne in March, 1863, being attended by three delegates from each of the colonies of New South Wales, Victoria, South Australia, and Tasmania. The subject of Federation was not considered at all; the Conference reporting that "although the question has, during some years, occupied the attention of several of the Legislatures, the delegates had no instructions in the matter, and it did not seem probable that its discussion at present would be attended with any benefit." Several subjects of intercolonial administration and legislation were dealt with; but the most important part of the business was the discussion of the question of a uniform tariff, intercolonial freetrade, and the fair distribution of the customs duties.

The Conference resolved that it was "desirable to settle the basis of a uniform tariff for the Australian colonies, and also for Tasmania." They agreed that the ad valorem mode of levying duties was open to so many objections that it ought not to be resorted to; and they framed a tariff, the adoption of which they undertook to urge upon their respective Parliaments. They also gave it as their opinion that the tariff which had been agreed upon, after the fullest deliberation, ought not to be altered by any one colony, nor without consideration at a future Conference.

Then came the question of intercolonial duties and their distribution. On this point the Conference resolved that "customs duties ought to be paid to the revenues of those colonies by whose population. the dutiable articles were consumed." The strict fulfilment of this would have involved the maintenance of the objectionable border custom-houses; so they added a resolution to the effect that the colonies of New South Wales, Victoria, and South Australia ought to co-operate to secure to each the revenue to which it was legally entitled, either by distribution of the revenue in proportion to population, or by some other mode which might be considered equitable and practicable.

New South Wales and Victoria, however, failed to agree on any "equitable mode" of distributing the revenue. Cowper, for New South Wales, offered to accept any one of three methods: either (1) division according to population; or (2) keeping entries of border imports and making periodical settlements between the Governments; or (3) payment of a fixed annual sum to New South Wales, estimated on the excess of revenue lost by New South Wales, as compared with Victoria, by the freedom of the border. None of these propositions, however, satisfied the Victorian Premier, Mr. (afterwards Sir) James McCulloch, who "failed to discover any equitable grounds for disturbing the existing arrangement entered into at the instance of the Government of New South Wales." The "existing arrangement" was the freedom of the border without any adjustment of accounts. This did not suit New South Wales. The claim of that colony to receive the revenue on imports consumed in the colony arose from the fact that the balance of intercolonial trade was at that time with Victoria. As Victoria definitely rejected all the terms proposed, the New South Wales Government put an end to the " 'existing arrange

ment," and on 19th September, 1864, began to collect duties on the Murray, having previously passed an Act (7 Vic. No. 24) to remove doubts as to the legality of this course.

In April, 1865, at the instance of New South Wales, a Conference was held at Sydney between representatives of the two colonies to reconsider the matter. (Votes and Proc., L.A. of N.S.W., 1865, i. 675). As a result a new agreement was entered into, by which on 1st September, 1865, the Murray border again became free, subject to a yearly payment of a fixed sum by Victoria to New South Wales. The duties on Murray-borne goods from South Australia were to be collected by Victoria, according to the Victorian tariff. This agreement was revised in 1867, and expired on 1st February, 1872. (Votes and Proc., L.A. of N.S.W., 1867-8, ii. 305; N.S.W. Act, 31 Vic. No. 1.) At the Conference of 1873 a new agreement was entered into; but Victoria retired from it on 31st January, 1873, owing to the abolition, under the Parkes Administration, of the New South Wales ad valorem duties which had been imposed by the Cowper Administration seven years previously. Since that date all attempts at agreement have failed, owing to the great difference between the tariffs of the two colonies, and duties have been collected on the border. For attempts at a similar agreement with Queensland, see N.S.W. Act, 25 Vic. No. 20; Votes and Proc., L.A. of N.S.W., 1871-2, i. 873. In 1876 an Act was passed in New South Wales (Border Duties Convention Act) to authorize Conventions with any of the adjoining colonies, but without any definite result.

INTERCOLONIAL CONFERENCES, 1863-1880.-During the whole of this period Intercolonial Conferences were resorted to, with varying success, as the only available method of securing uniform legislation and concerted administration on subjects of common concern. A certain amount of joint action was thus secured with respect to such matters as lighthouses, ocean postal services, telegraphic communication with Europe, alien immigration, defence, and so forth. Most of these Conferences had no direct bearing on the question of Federation, except to show the utter inadequacy of this method of dealing with intercolonial questions. (See G. B. Barton, Historical Sketch of Australian Federation, pp. 12-14.)

One of these Conferences, which was held at Melbourne in March, 1867, is of special interest, as it brings Mr. (afterwards Sir) Henry Parkes-then Colonial Secretary of New South Wales in the second Martin administration-into prominent notice as an advocate of Federation. The Conference met to discuss the question of postal communication with Europe, the Imperial Government having offered to pay half the subsidy for a steam postal service between Point de Galle (in Ceylon) and Australia. The Conference, however, had larger ideas; it passed resolutions in favour of establishing a fortnightly service by three routes-Torres Straits, Suez, and Panama— the colonies undertaking to pay half the necessary subsidy. A memorial to the Queen was drawn up, and it was resolved that a Federal Council should be established to carry the resolutions into effect. Mr. Parkes addressed to the Conference these notable words:

"I think the time has arrived when these colonies should be

united by some federal bond of connection. I think it must be manifest, to all thoughtful men, that there are questions projecting themselves upon our attention, which cannot be satisfactorily dealt with by any one of the individual Governments. I regard this occasion, therefore, with great interest, because I believe it will inevitably lead to a more permanent federal understanding. I do not mean to say that, when you leave this room to-night, you will see a new constellation of six stars in the heavens. I do not startle your imagination, by asking you to look for the footprints of six young giants in the morning dew, when the night rolls away; but this I feel certain of, that the mothercountry will regard this congress of the colonies just in the same light as a father and mother may view the conduct of their children when they first observe those children beginning to look out for homes and connections for themselves. I am quite sure that the report of this meeting in your city of Melbourne, little as it may be thought of here, will make a profound impression upon the minds of thoughtful statesmen in England. They will see that, for the first time, these offshoots of Empire in the Southern Hemisphere can unite, and that, in their union, they are backed by nearly 2,000,000 souls."-Melbourne Argus, 18th March, 1867.

A Bill to establish the proposed Federal Council was shortly afterwards introduced by Mr. Parkes in the Legislative Assembly of New South Wales. This Bill, to which the resolutions of the Conference were annexed in the schedule, was carried through both Houses, and reserved for the Royal assent. It was, however, shelved by the Home Government. The Duke of Buckingham, then Secretary for State, informed the Governor of New South Wales, in a despatch dated 5th January, 1868, that if the resolutions in the schedule had received Imperial assent, or had continued to command the assent of the colonies, or if the Act had created a Federal Council to deal generally with postal communication or any other subject of intercolonial interest, he would have recommended that it be assented to; but as the powers of the Council were confined to a definite scheme, to the details of which Her Majesty's Government could not agree, he was unable to submit it to the Queen.-Votes and Proc., Leg. Ass. of N.S.W., 1868-9, i. 535.

COMMERCIAL FEDERATION.-Besides the border treaties, continued efforts were made to secure some more comprehensive scheme of customs union or commercial reciprocity. The Constitutions of all the Australasian colonies, except New Zealand, contained a prohibition -originating in the Australian Colonies Government Act of 1850 (13) and 14 Vic. c. 59, sec. 31)—against any duties upon imports from "any particular country or place" which were not equally imposed on imports from "all other countries and places whatsoever." These prohibitions stood in the way of colonial legislation for reciprocity; and in 1866 the Executive Council of New South Wales adopted a minute asking for their repeal so far as to allow free importation from any one colony. (See despatch from Sir John Young to the Secretary for State, 21st December, 1866; Votes and Proc., L.A. of N.S.W., 1868-9, ii. 109.) Lord Buckingham, the Secretary of State for the Colonies, replied in a despatch of 7th January, 1868, that the Home

Government would gladly aid the establishment of a Customs Union embracing all the adjacent colonies, and providing for a uniform tariff, intercolonial freetrade, and an equal division of the customs duties; they might even consider any partial relaxation of the existing rule; but they could not propose the repeal of the clause which prevented differential duties. That would enable the colonies to discriminate against foreign nations, and even against the mothercountry, and might seriously embarrass treaty relations. Thereupon the Government of New Zealand proposed an intercolonial Conference to consider the question of a Customs Union. In 1870 Tasmania renewed the proposal; and a Conference was accordingly held at Melbourne, in June and July, 1870, between delegates from New South Wales, Victoria, South Australia, and Tasmania, at which the most important question considered was the establishment of a Customs Union, with a uniform tariff and intercolonial freetrade. (Votes and Proc., L.A. of N.S.W., i. 583.)

This time the uniform tariff was the stumbling-block. All the colonies agreed that a uniform tariff was desirable; but when they proceeded to frame such a tariff, the fiscal policies of New South Wales and Victoria proved irreconcilable. The Victorian delegates (Messrs. J. G. Francis and James McCulloch) absolutely declined to surrender the principle, recognized by the Victorian tariff, of discriminating between raw materials and manufactured goods. The New South Wales delegates (Messrs. Charles Cowper and Saul Samuel) declined to consider any proposition to amend their tariff in the direction of such a principle. On articles subject to a "fixed" duty—such as spirits, wines, beer, tobacco, tea, &c.-an agreement could probably have been arrived at; but the determination of each colony to adhere to its fiscal principles made a Customs Union between them impossible.

An effort was then made to patch up an agreement between Victoria, South Australia, and Tasmania; but here again insuperable difficulties disclosed themselves. With a Customs Union of all the colonies, Victoria had been willing to agree to intercolonial freetrade. and the distribution of revenue on a population basis. But with New South Wales standing out, Victoria considered that "the prospective advantages were diminished," and offered very different terms -namely, that distribution should be governed by contribution, that the Victorian tariff should be accepted as the common basis, and that the Victorian Parliament should retain the power to alter the tariff. The other colonies promptly rejected this proposal, and all hope of a Customs Union fell through.

The Conference reported, however, that though they had not arrived at a definite conclusion, they had a deep conviction of the importance of the question; and they prepared a memorial to the Home Government praying for the removal of the existing restrictions on intercolonial commercial treaties.

On 31st July, 1871, Lord Kimberley, the Secretary of State for the Colonies, sent a circular despatch to the several Governors on the subject of colonial tariffs. (Votes and Proc., L.A. of N.S.W., 1871-2, i. 845.) He had received despatches from several of the Governors,