At the end of the quarter-century in 1884 the public debt was L16,570,850, on which the interest charge was L701,565. Of this amount L9,417,318 expended on railways was earning L2 18s. per cent. The length of lines open for traffic totalled 1,207 miles. The population was 309,913. About L2,350,000 had been spent on immigration, of which nearly a third of a million had come from revenue, L1,778,000 from loan, and the rest from "special receipts"--partly contributions from immigrants. The year's imports were of the declared value of L6,381,976, and the exports L4,673,864. Joint stock bank assets exceeded 11 millions, liabilities were nearly 73/4 millions, deposits exceeded 6 millions, and savings bank deposits were over 1 million. Of cattle there were 41/4 millions, of sheep less than 91/2 millions, while horses numbered 253,116. There were 6,979 miles of telegraph line constructed. There were over 7 million acres of land alienated, which had produced over 43/4 millions sterling of revenue. The value of minerals won for the year was L1,325,624. There were 528 schools with 60,701 scholars, 5,185 subscribers to public libraries, and 60,257 volumes. Comparing these figures with those of 1860 it will be seen that, despite droughts, floods, and financial crises, the progress attained had been phenomenal. Thus in a financial aspect the first quarter-century closed glowingly, despite a severe Western drought in 1883. There had been rapid and apparently solid progression, and the disasters of 1866, which seemed at the time to threaten the solvency of Government and people alike, had become an unpleasant memory--a catastrophe very unlikely to recur for various reasons, among them being that the railways were beginning greatly to facilitate transport, as well as to show considerable net earnings; while instead of the Government borrowing at 6 per cent., as formerly, money in abundance could be got at 31/2 per cent. Moreover, mortgage loans and bank overdrafts bore a greatly reduced rate of interest. CHAPTER III. PUBLIC FINANCE (1884-1893). The Ten-million Loan.--Ministers Practically Granted Control of Five Years' Loan Money.--Vigorous Railway Policy.--Effect of Over-spending.--Inflation of Values.--Increased Taxation. --Succession of Deficits.--Second McIlwraith Ministry. --A Protectionist Tariff.--Temporary Increase of Revenue. --Heavy Contraction in 1890.--Another Big Loan; Failure of Flotation.--The First Underwritten Australian Loan. --Amended Audit Act Limiting Spending Power of Government.