In order to give employment to those of the settlers who were really destitute, Governor Gawler commenced a series of Government works. He constructed a good road between Adelaide and its port. He formed wharves, and reclaimed the unwholesome swamp; he built a Custom House, with warehouses and many other costly buildings, the Government House alone costing £20,000. Now, these were all in themselves very desirable things; but it was difficult to see how they were to be paid for. Colonel Gawler spent nearly the whole of his own private fortune in paying the wages of the unfortunate persons he employed, but that could not long support so great a concourse of people. He persuaded merchants in England to send out provisions and clothing for the famished people; but the only means he had of paying for these goods was by drafts on the British Treasury, which were accepted at first as equivalent to money, for it was believed that, whenever they were presented in London, payment would immediately be made by the British Government. But this was a serious mistake: though the first series of drafts were paid readily enough, yet when the authorities in England found that others, for larger and larger amounts, continued to pour in, they refused to pay, and reminded the colony that, by the terms of its charter, it was to be entirely self-supporting. A series of drafts, to the amount of £69,000, were therefore dishonoured; and the merchants, finding the drafts to be worth no more than so much paper, demanded their money from the Governor; but he had nothing with which to pay, and the colony had to be declared insolvent, having debts to the amount of about £400,000 which it could not meet.
#7. The Collapse.#--Matters were now in a very gloomy condition. Most of the colonists became anxious to return to England, and therefore sought to sell their land. But when nearly all wished to sell, and scarcely any wished to buy, the price went down to a trifle, and men who had invested fortunes in town allotments, realised no more than enough to pay their passage home. In the meantime the English merchants declined to send out any further supplies, and those who had not the means of leaving Adelaide seemed in great danger of starving. But as land could now be bought very cheaply, many industrious people of the poorer class settled down to clear the country for farming. This was what should have been done at the very beginning; for no colony can be prosperous, or look for anything but bankruptcy, until it commences to produce grain, or wool, or minerals, or some other commodity with which it can purchase from other lands the goods which they produce. The lands of South Australia are admirably adapted for the growth of wheat; and, after a time, success attended the efforts of the farmers, who thus laid the foundations of future prosperity.