The Australian colonies are, one and all, democracies of the most advanced type. Annual Parliaments have been advocated, though at present triennial legislatures are the rule. Payment of members, it should be added, is not adopted by all the states, but the principle seems to be spreading. Two Houses are established in each colony, a Legislative Assembly and a Legislative Council. The former is always elected by manhood suffrage; the latter, as in Victoria and South Australia, may be an elected body, or, as in New South Wales and Queensland, it may be composed of members nominated by the Crown. How the second chamber should be constituted is one of the problems of the day. Every now and then one or the other of the colonies is treated to 'a deadlock' between the two bodies; and more than once in Victoria public payments have been suspended in consequence, and popular passion has run high. The Australian democracy has worked well upon the whole, and has given security to life and property. The best proof of this is the rapid rise of colonial securities in the public favour. When New South Wales, South Australia, and Victoria commenced to build their national railways in 1857-1860, they were glad to sell six per cent. debentures at par in London, and now they float four per cent. loans at a premium. The colony of Victoria is altogether protectionist, and South Australia has given in a partial adherence to the system. To the author the policy seems to be wrong in theory and practice, but the belief is widespread that, even if sacrifices are made, the resources of the colony are thus developed. Twenty years back the populations of the various colonies did not touch each other: each colony spread from its own centre; but now this isolation has disappeared. Settlement is contiguous with settlement, and trade and intercourse are accelerated accordingly. The colonies can no longer ignore each other, and hence the movement for federation has gathered strength. The first Federal Council met in Hobart in January 1886, but unfortunately jealousies had crept in, and the new body was shorn of its fair proportions. Federalists cannot help feeling greatly disappointed that the results hitherto have been so small, and yet probably there is much more to rejoice over than to be downcast about.