About the year 1790, the Spanish merino began to be imported into the Cape, and a few years later a certain Captain Waterhouse was sent from Sydney to Capetown to buy stock for the colonial establishment. He thought the service in which he was engaged 'almost a disgrace to an officer;' but when he left the Cape again, he brought with him 'forty-nine head of black-cattle, three mares, and one hundred and seven sheep'--arriving at Port Jackson with the loss of nine of the cattle and about one-third of the sheep. Three cows, two mares, and twenty-four of the sheep belonged to that officer, and with this voyage he founded not only his own fortune, but also the prosperity of the great Australian colony. Further importations followed; and a Captain Macarthur, early in the present century, went home to London to endeavour to form a company to carry on sheep-rearing on an extensive scale. He did not succeed, and returned to Port Jackson to pursue his enterprise himself. Eventually he obtained the concession of a few square miles of land, and thus became the father of Australian 'squatting.' He located himself on the Nepean River, to the south-west of Sydney; and to his industry and sagacity is attributed in great part the origin of the immense wool-trade which has developed between the colony and the mother-country.
And what is now the wool wealth of Australasia? In 1820 there were not more than ten thousand sheep of 'a good sort' in New South Wales; and in the same year, wool from the colony was sold in London at an average of three shillings and sevenpence the pound. This led to the circulation of fabulous reports of the profits to be made out of sheep; and there was quite a run for some years on the squatting lots. In 1848 some Australians started sheep-running in New Zealand; and by 1860 the sheep in these islands had increased to 2,400,000. In 1865 the number there had grown to 5,700,000; in 1870, to 9,500,000; and in 1894, to 19,000,000.
In 1886 the pastoral wealth of the whole of the Australian colonies consisted of 84,222,272 sheep. At only ten shillings per head, this represents a capital of over forty-two millions sterling, without counting the value of the land. The number of sheep in 1894 was over 99,000,000.