General Hernandez who had led a revolutionary enterprise some months before, without much success, attempted another in October, but he was defeated in battle and with heavy loss. President Andrade retired to San Juan, Porto Rico, and the Castro Government held the situation for the time being.

The arbitrators under the treaty between Great Britain and Venezuela of February, 1897, delivered their award on October 3. It practically confirmed the Schomburgk line, but gave Venezuela Barima Point at the mouth of the Orinoco, and also a tract of territory to the west of the Wenamu River and west of a line drawn from Mount Venamo to Mount Rovaima marked by Schomburgk as British.

CHAPTER VIII.

AUSTRALASIA.

Two events of supreme import and of far-reaching consequence to Australasia distinguish the year 1899. The colonies, at least five out of six, finally agreed in a practical scheme of confederation, of which there is now at last a fair hope of accomplishment. A federal act was passed by five colonies, New South Wales, Victoria, South Australia, Queensland and Tasmania, and was transmitted at the close of the year to the Imperial Government to be embodied in an act of Parliament. The sixth colony, Western Australia, after much dallying and negotiation upon minor points, declined to submit the question to a popular vote, but there can be no doubt that a large majority in the colony, including nearly the whole of the mining community, are in favour of confederation, and it is certain that their wishes will ultimately prevail.

The second great event is of scarcely less importance for its influence upon the future destinies of Australasia in her relations with the mother country. The outbreak of war in South Africa through the invasion of British territory by the Boers called forth an extraordinary amount of sympathy from all classes of the colonists. The movement in defence of the imperial interests was all the more gratifying as it could not be suspected of being influenced by any but the purest and highest motives of patriotism and of loyalty. From the first the quarrel between the Boer republics and the British Government was interpreted as a deliberate and long-matured conspiracy against the British power in South Africa, the object of which was to degrade the colonists of British blood and language to a position inferior to the Dutch, to usurp the dominion of South Africa, and thus to break one principal and necessary link in the chain of British Empire. The ardour and enthusiasm with which the call to arms in defence of the mother country was responded to throughout Australasia surprised even those best

acquainted with colonial sentiment, and came certainly as a revelation to imperial statesmen. All parties and all classes, almost without exception, joined in the passionate desire to take part in a struggle which was more clearly recognised than even at home as one in which the honour and the integrity, if not the existence, of the British Empire were involved. Military contingents, consisting of highly-trained Volunteers, well armed and equipped, were despatched from all the colonies, and in spite of some initial discouragement from the imperial departments, arising from ignorance or over-officialism, of which the most striking example was the telegraphic message intimating that "unmounted men were preferred," the assistance thus rendered to the British arms in the field proved most opportune and valuable.

The Prime Ministers of the six colonies met, for the last time, to settle the details of the Commonwealth Bill, at Melbourne on February 2. They finally resolved that in the matter of a difference between the two Houses of the federal Legislature, an absolute majority of the two Chambers voting together should be decisive. The much-vexed Braddon Clause, concerning the financial contributions of the several members of the Commonwealth, was adopted-to be in operation for ten years, and after that to be altered or not by vote of the Federal Legislature. The federal capital, it was arranged, should be within the territory of New South Wales, a hundred miles from Sydney. Upon the announcement of the final result of the deliberations of the conference congratulatory telegrams from the Imperial Government were received by all the colonial Governments.

The colonies all joined in protesting against the increase of the wine duties in the new financial scheme of Great Britain, as likely to affect prejudicially the colonial wine industry.

There was a good deal of dissatisfaction at the refusal of the Imperial Government to contribute to the cost of the new Pacific cable scheme. The colonies themselves, however, were not agreed upon the route to be taken by the new cable-New Zealand and New South Wales preferring the western line, while most of the others favoured the eastern, as connecting them directly with other British possessions.

All the colonial Governments decided by an almost unanimous vote to send military contingents in support of the British cause in South Africa-Queensland having the honour of being the first to tender her services. In one or two of the colonies the vote was opposed by small sections of the Labour party, but the popular voice in favour of participating in the defence of the British Empire in South Africa was unmistakably demonstrated. The original contributions of men and arms were in most cases supplemented by large additions. The despatch of the local forces was attended by extraordinary manifestations of public feeling at Sydney, Melbourne, Brisbane and Adelaide.

In reply to the objections to the Federal Bill raised by Western Australia Mr. Reid on behalf of the Australian Premier, wrote to Sir John Forrest, the Western Australian Prime Minister, pointing out the utter impossibility of reconsidering the details of the federal scheme and urging the submission of the bill to the people.

Though not directly connected with confederation, nor likely to be attended with consequences injurious to the prospects of the Federal Bill, it is a fact, not altogether of good omen for the cause of unity, that the five Australian Prime Ministers who were most active in promoting the Federal Bill were all turned out of office during the year-the only one maintaining his power being Sir John Forrest, the leading opponent of the measure. All the new Governments, however, accepted confederation, and there is no reason to believe that the political changes in the Constitution of the colonies will injure or delay the final accomplishment of a federal union-the questions agitating the local Parliaments being such as are likely to be continued in the Federal Parliament.

The feeling excited at home over the trial of Captain Dreyfus and the Rennes verdict, found an echo in the colonies. At large meetings in Sydney and Melbourne unanimous resolutions were passed in condemnation of what one of the Governors called "the hideous travesty of justice."

The tripartite treaty between England, Germany and the United States regarding Samoa was received with regretful acquiescence. The transfer of Samoa to Germany was not supposed to be balanced by the recognition of the British right over the Tongas, seeing that there never was any question of German rights over the Tongas, and the trade between both groups of islands and Great Britain was by far larger than between them and any European Power. The stipulation that all goods imported into Samoa shall be subject to the same duties has done something, however, to remove the Australian objections to the transfer, in which New Zealand, from its geographical position, was most nearly concerned.

The revenues of all the colonies showed a marked increase during the year. They were all prosperous, and every branch of industry was flourishing, in spite of long-continued droughts.

New South Wales. In response to a deputation from distressed agriculturalists in the interior, Mr. Reid, the Prime Minister, promised to bring forward a measure for their relief. A bill for advancing 200,000l. to small settlers on certain conditions was carried through both Houses of Parliament on March 23.

A special session of Parliament to consider the Federal Bill was opened on February 22. The Federal Enabling Bill passed the Assembly on March 3.

Upon the bill reaching the Legislative Council the Upper

House introduced amendments requiring one-fourth of the electors to vote in its favour, and providing that New South Wales should not join the federation until Queensland did so.

The Assembly, on March 22, after an all night's sitting, rejected the council's amendments. The differences between the two Houses was sought to be settled by a conference, which was held on March 28. After a lengthened discussion no agreement was reached. Mr. Reid thereupon asked the Governor to make such a number of appointments to the council as would ensure a majority for the bill. The Acting Governor consenting, twelve new members were added to the Legislative Council (April 9).

The Federal Enabling Bill was passed by the Legislative Council without amendments on April 19, and Parliament was immediately after prorogued.

The Legislative Council passed the bill for advancing 200,000l. to distressed agriculturists on March 25. Mr. Want, the Attorney-General, who was the principal opponent of the Federal Bill, finding his position incompatible with the policy of the Ministers, resigned office on April 18.

Lord Hampden left Sydney on March 5. Earl Beauchamp, his successor, arrived May 18.

One hundred New South Wales Lancers embarked for England on March 3, to be trained with British cavalry.

A public meeting was held at Sydney on March 6, presided over by Sir George Dibbs, ex-Prime Minister, at which resolutions were passed condemning the Federal Bill.

Cardinal Moran made a violent speech on receipt of the news of the disturbances in Samoa, strongly denouncing the British and American policy in the islands. He declared that "the aggression of the United States-who wanted to make an American lake of the Pacific-was a danger to the Empire.' The moving cause of the archbishop's anger, as it appeared afterwards, was an alleged attack by the united British and American sailors on a Roman Catholic church, which was filled with the partisans of Mataafa.

The Prime Minister sent a message by cable to the Imperial Government protesting, in the name of the Australasian Premiers, against the proposed new duties on wine. He declared it to be "an unfortunate time" for such a measure, which was" at variance with the new disposition of the colonies in favour of a preference to British manufactures."

The Minister of Lands, after a tour of inspection in the interior, reported the prevalence of drought in the agricultural districts. Nearly all the stock had perished in some parts of the colony. The pastoralists asked for a reduction of rents, with larger holdings and a longer tenure.

The voting for the Federal Bill was 107,274 for, and 72,701 against, showing an increased majority and a stronger popular interest for the measure.

The revenue for the year ending June 30 was 9,754,6851., showing an increase over the last year of 272,0981.

The Parliament was opened for the ordinary session on July 18. During the recess considerable changes were made in the arrangement of the Ministerial offices, consequent on the resignation of the Attorney-General.

Mr. Carruthers, the Treasurer, made his Budget speech on August 16, announcing a surplus of 147,7001., and declaring that the tariff would remain unaltered.

On September 7, Mr. Barton having resigned the position of Opposition leader in favour of Mr. Lyne, the latter moved a vote of want of confidence in the Ministry-the ostensible ground for which was a payment, in defiance of a parliamentary pledge, made to Mr. Nields, a member of the Assembly, who had been sent on a special mission to England. The Labour party, which had hitherto been Mr. Reid's chief support, having deserted him, the vote against the Ministry was carried by 75 to 41. Ministers resigned two days after-the Governor having refused a dissolution-after a reign of five years.

Mr. Lyne being sent for, a new Ministry was formed, with himself as Premier and Treasurer; Mr. J. Lee, Colonial Secretary; Mr. W. H. Wood, Minister of Justice; Mr. J. Perry, Public Instruction; Mr. W. P. Crick, Postmaster-General; Mr. E. W. O'Sullivan, Public Works; Mr. T. H. Hassall, Lands; Mr. J. L. Fegan, Mines; Mr. B. R. Wise, AttorneyGeneral; and Mr. J. A. K. Mackay, Vice-President of Council.

All the new Ministers were re-elected on taking office. Mr. Lyne, in a speech made on September 20, said he was now prepared to accept the Commonwealth Bill. His Ministry was believed to be strongly Protectionist; though Mr. Wise, the Attorney-General, is known to be an advanced Free Trader Mr. Lyne giving a pledge that no great changes will be made in the fiscal policy of the Government, pending the arrival of the new federal Constitution.

Mr. Lyne, as Treasurer, in his financial scheme, announced considerable divergence of figures between him and his predecessor-the difference between them amounting to 1,400,000l. He proposed the issue of Treasury Bills to the extent of 4,000,000l., and increased stamp duties.

The departure of the New South Wales contingent, in aid of the British forces in South Africa, took place on October 25, amidst a scene of extraordinary enthusiasm.

General Booth, of the Salvation Army, arrived at Sydney on April 11, and met with a cordial reception.

Considerable ferment was aroused among the French residents of Sydney by a phrase in a speech delivered by Lord Beauchamp, the Governor, in a reference to the Dreyfus affair, which was declared to be a "hideous travesty of justice." This the Frenchmen protested against, declaring it to be not