eing
very little better. Water, Water, is the cry, in dry seasons, all over
this otherwise highly favoured country; and till the end of time, this
want will prevent New South Wales from becoming a densely populated
country.

The horse-fancier may invest a few hundreds very profitably in the
purchase of some really good brood mares. From these, he will not only
draw a good return for his money, but will also derive a great deal of
pleasant pastime in superintending the breaking-in of his colts and
fillies. Horse-stock, like every other, has fallen much in price lately,
but will doubtless recover itself when times improve. I am acquainted
with more than one proprietor who has made no inconsiderable sum of
money by rearing horses. There is a constant demand for them; and of
late, a good market has been found in India for those suited for
cavalry.

Another profitable investment for money is to be found, in Sydney, in
the way of mortgage. Ten and twelve per cent, is paid regularly, and
security given of an undoubted character,--security that has not in one
instance failed the mortgagee, even in the recent desperate times. Large
sums may be invested in this way; and for the absent capitalist, it is
the mode of investment I would recommend in preference to any other.
Bank Shares used to be in great favour with monied men when I was in
Australia. The holders have, however, had a severe lesson since then,
having suffered seriously by some failures among those establishments.

CHAPTER XII.

NEW SOUTH WALES.

CAUSES OF THE RECENT DISTRESSES--CONDUCT OF THE
BANKS--MANIA FOR SPECULATION--LONG-ACCOUNT
SYSTEM--BAD SEASONS.

I will now proceed to offer a few remarks on the causes of the late
terrible distresses in New South Wales, and on what I consider as the
best means of preventing the recurrence of such lamentable scenes.

The three main causes of those distresses were, undoubtedly:--

First, Harsh and illiberal conduct on the part of the Banks.

Secondly, A wild speculation-mania that took possession of the
entire population.

Thirdly, The system that had obtained, of giving long credit to
purchasers of stock, &c.

While I look upon these three as the primary and principal causes of by
far the greater part of the suffering the Colony has recently undergone,
I must specify another, though certainly a secondary cause; namely, two
successive bad seasons. This last cause is, I am aware,