Mr. Anderson Dawson, the Labour leader in the Assembly, being sent for, assumed the Premiership with six other Labour colleagues, but was defeated immediately he met Parliament a few days later, and resigned. He was succeeded by Mr. Philp, who assumed office on 7th December, 1899. There had been a drought in most parts of the West for a year or two previously, but wool prices were high, and better seasons were anticipated. The country had almost recovered from the blow sustained in 1893. Federation threatened some loss of revenue, but compensation was looked for in the enhanced prosperity resulting from interstate free trade. But for the two first years of the twentieth century there was everywhere in the State a very deficient rainfall, and in most inland parts absolute droughts. The double loss to the Treasury through Federation and parsimonious Nature was very serious. Mr. Philp made reductions in public service expenditure, but kept loan expenditure at the normal level, sanguine that when the change came there would be a swift recovery, and hesitating to add to the depression by suspending the construction of railways and other public works. Though by the end of June, 1903, the accumulated deficit exceeded a million sterling, and the general election of 1902 had given the Government a rather diminished majority, there appeared to be no apprehension of a crisis even when Parliament met for its second session in July, 1903. But the weight of successive deficits and the protracted tenure of the "Continuous Ministry" inspired a general desire for change; and, in September, Mr. Philp suddenly found himself without adequate support as the result of a number of influential Government supporters joining forces with the members of the Labour party. A new Ministry was at once formed, the Speaker, Mr. Arthur Morgan, resigning the chair and assuming the Premiership, Mr. William Kidston joining him as Treasurer. With a policy of retrenchment and reform the new Administration entered upon its career sustained by a strong backing of public opinion. Retrenchment had already been initiated by the late Government, and it was continued by Mr. Morgan and his colleagues. The bottom of the depression having been touched with the break-up of the drought, the financial year 1903-4 closed with a merely nominal deficit. In the next session, which opened in May, 1904, the Government encountered so much opposition that a dissolution was granted in July. So strongly were the constituencies in favour of the retention of office by Ministers that their party numbered 55 in a House of 72 when the new Parliament met in September, and the Government in that and the three following sessions were accordingly able to carry many of their measures of reform.