B2 IMPORTATION OF CAPITAL INTO 
ment was not proceeding on sound lines, either from the point 
of view of the capital investor or from that of the people 
sharing the interest burden. If we except the years of the gold- 
rush, immigration reached its highest peak in 1883 when the 
capital imports were just beginning; and the lowest record is 
shown for 1888—the annus mirabilis in Victoria—when less than 
18,000 immigrants came to Australia. Again, unemployment was 
lightest during the very years that immigration was heaviest, 
and vice versa. When it is realized that the population increased 
by only half a million during a period when indebtedness rose by 
morethan £100 millions, we have to seek very littlefurther for the 
>xplanation of the essential unsoundness of the whole position. 
But even growth of population, whether by immigration or by 
natural increase, must be deemed less adequate as a measure for 
borrowing capacity than is productiveness. The expansion of 
all the industries of the continent was the one condition at 
that time which could justify the absorption of capital; and 
svery analysis of the situation, from distribution of the people 
as between town and country to progress of primary industry, 
tails to indicate a satisfactory advance. In the first place, that 
concentration of population in the cities which has since become 
so marked was beginning to appear. The figures given below 
will afford an idea of the progress of this movement; and, 
ignoring the social implications, it can scarcely be deemed 
‘ndicative of rural expansion.? 
Whilst, in view of the fact that most of the economic land of 
the continent had been occupied by 1880, it would be manifestly 
anfair to expect the maintenance of the rate of settlement or of 
production set in the period following 1850, the diminished rate 
of expansion has to be seen in the light of the increasing burden 
5f debt. The progress in rural industry is indicated by a review 
U Tn 1888, when the net increase for all Australia was only 15,000, Victoria showed 
an increase of 25,760 due to the influx of iramigrants from the other states attracted 
by the continuance of boom conditions after depression had set in elsewhere. 
Victoria obtained 10,550 people from New Zealand, 8,480 from South Australia, 
1,050 from Western Australia, and 390 from Tasmania in that year. 
3 See The Peopling of Australia, chapter by E. T. McPhee on Australian urbaniza- 
tion. 
URBANIZATION IN AUSTRALIA 
1871. 1881. 1891. 
. 28 32 42 
. 26 29 33 
12 14 25 
Victoria, per cent. in Melbourne . 
N.S.W., per cent. in Sydney . . 
Queensland, per cent. in Brisbane ,