#1. Gipps.#--In 1838, when Governor Bourke left Australia to spend the remainder of his life in the retirement of his native county in Ireland, he was succeeded in the government of New South Wales by Sir George Gipps, an officer who had recently gained distinction by his services in settling the affairs of Canada. The new Governor was a man of great ability, generous and well meaning, but of a somewhat arbitrary nature. No Governor has ever laboured more assiduously for the welfare of his people, and yet none has ever been more unpopular than Gipps. During his term of office the colonists were constantly suffering from troubles, due, in most instances, to themselves, but always attributed to others, and, as a rule, to the Governor. It is true that the English Government, though actuated by a sincere desire to benefit and assist the rising community, often aggravated these troubles by its crude and ill-informed efforts to alleviate them. And as Sir George Gipps considered it his chief duty to obey literally and exactly all the orders sent out by his superiors in England, however much he privately disapproved of them, it was natural that he should receive much of the odium and derision attendant on these injudicious attempts; but, on the whole, the troubles of the colony were due, not so much to any fault of the Governor or to any error of the English Government, as to the imprudence of the colonists themselves. #2. Monetary Crisis.#--During twelve years of unalloyed prosperity, so many fortunes had been made that the road to wealth seemed securely opened to all who landed in the colony. Thus it became common for new arrivals to regard themselves, on their first landing, as already men of fortune, and, presuming on their anticipated wealth, they often lived in an expensive and extravagant style, very different from the prudent and abstemious life which can alone secure to the young colonist the success he hopes for. In Sydney the most profuse habits prevailed, and in Melbourne it seemed as if prosperity had turned the heads of the inhabitants. The most expensive liquors were the ordinary beverages of waggoners and shepherds; and, on his visit to Port Phillip in 1843, Governor Gipps found the suburbs of Melbourne thickly strewed with champagne bottles, which seemed to him to tell a tale of extravagance and dissipation.