The terms 'squatter' and 'squatting' are now misleading. They cover a number of different occupations, and perhaps the words 'grazier' and 'grazing' ought to be substituted. The original squatter paid his £10 licence fee, and he was at liberty to go where he pleased and to take up as much land as he required for his sheep and for two years' increase. Whether he had five hundred sheep or five thousand did not matter. Australia was large, and the adventurous pioneer was at liberty to pick and choose. The flocks were 'shepherded'--that is, were not confined between fences, but were looked after by men who drove them to their feed during the day, and placed them inside hurdles at head-quarters at night. But, as land was taken up, the squatter obtained a particular run for a term of years. He subdivided it by fences into paddocks, and so reduced his number of herds and conducted his operations more scientifically. When a new run is taken up, it is pretty sure, in the first instance, to be stocked with cattle. Cattle-raising requires no heavy outlay of capital, because, beyond horses for the men, yards to work the stock, and perhaps one or two paddocks to enclose young heifers and separate them from the general herd, no buildings have to be erected. Then the produce of a cattle station--the fat stock--can be cheaply driven to market. Travelling with stock through the bush costs no more than the wages of the men employed, and, if carefully driven, the bullocks do not deteriorate. Last but not least among the advantages possessed by the cattle squatter is the fact that he can make shift with comparatively few water-holes. Cattle can feed their way to water much more readily than sheep.