ever. This was the discovery of an enormous mass of
virgin gold, weighing upward of one hundred pounds, by Doctor Kerr, a
squatter on the Meroo Creek. Doctor Kerr had been guided to the spot by
an aboriginal who had been in his service several years; and, in his
excitement, he broke the matrix in which the nugget was imbedded, and
thus spoiled what would have been the most magnificent specimen of gold
quartz hitherto discovered. Even as it was, the display in Bathurst of a
single find of gold worth four thousand pounds was enough to excite the
feelings of the inhabitants to a pitch inconsistent with steady
industry.

But Doctor Kerr's find raised a point of some interest to the
Government. In framing the licensing regulations, the advisers of the
Crown had thought only of the possibilities of alluvial mining. Had they
even directed their thoughts toward rock gold, they would probably have
considered it highly improbable that any explorer should be able to
extract the metal without an amount of preparation which he would hardly
undertake upon the security of a bare license. But, as it happened,
Doctor Kerr had not even a license when he discovered the gold, though
he took one out as soon as possible afterward. To strengthen its
position, the Government seized the gold in the hands of a firm of
shippers who were about to send it to England; but, on the firm's
representation, it was released, security being given for the payment of
a royalty of 10 per cent, if the Crown should see fit to demand it.

Early in August, 1851, the Governor announced that, for the future,
licenses would be held to cover only alluvial gold, and that for rock
gold found on Crown land the Government would demand a royalty of 10 per
cent., half that amount if the working was on private land. A fortnight
later the Government undertook the escort of gold from the diggings to
Sydney, thereby adding considerably to the Crown revenue and at the same
time obtaining additional power over the gold districts. By the end of
August, gold to the value of seventy thousand pounds had been exported
from the colony. But these figures were soon eclipsed by those which
followed.

The news of the gold discoveries near Bathurst had soon spread through
the Australian colonies. The more adventurous of the colonists started
at once for the diggings. Others, often encouraged by their governments,
who foresaw a constant drain of population in favor of the gold colony,
en