A Short History of Australia by Ernest Scott

The original plan for a settlement of small holdings--The growth of large estates--Organization on capitalist basis--Rise of trade unions--Effect of gold discoveries on social conditions--The growth of trade unions after 1850--The depression of the 'nineties and the 'Great Strikes'--The growth of industrial arbitration and the rise of the Labour Party--William Lane and 'New Australia!--The development of a 'middle class'--The growth of social services--Education, health and social welfare--The standard of living in Australia.

The original plan of the British government was to establish a settlement of small farmers and traders in Australia. Governor Phillip had instructions to make small grants of land to convicts who had served their sentences, and somewhat larger areas to free settlers and members of the armed forces, who wished to settle. But free settlers and officers soon found there was not enough profit to be made out of small holdings, for the land round Sydney was not fertile and productive. They began to buy up the land of ex-convicts and soldiers, and to acquire large estates worked by labourers--mainly ex-convicts or 'assigned' convicts. The growth of large holdings was strongly encouraged by John Macarthur's success in sheep-breeding, and by the fact that he received a grant of 5,000 acres at Camden Park (near Sydney) in 1805. Thereafter land grants were made in proportion to a settler's capital, and so grants of thousands of acres were frequent. These large holdings were partly necessary because of Australian soil and conditions, but also because from about 1820 sheep-farming became more important than agriculture. Crops were grown only for local consumption, whereas grazing not only provided meat for the local market but also exports of wool which steadily grew in importance. By 1850 Australia had become the world's chief EXPORTER of wool, and this was nearly all produced on large 'runs.' This meant that the original plan of settlement was scrapped; instead of Australia becoming a country of small farms worked by their owners, as in Europe or in Ireland, most farms were large and were worked by labourers.