The year 1889-90 was characterised by a deficit of L483,979, for the drop of L402,857 in revenue and the increase of L197,969 in expenditure dislocated the finances, and caused the retirement of the Morehead Government after an ineffectual attempt to impose a general tax of 5 per cent. on all property, both real and personal. The coalition Griffith-McIlwraith Administration followed, but could not in such a time of value shrinkages materially increase revenue, while expenditure was thought to be irreducible. Despite a Loan Act for 11/2 millions passed in 1888-9, to provide for works temporarily met by floating Treasury bills during the two preceding years, another large loan was authorised in 1890, its total being nearly 33/4 millions sterling. This money was needed to retire debentures maturing on 1st July, 1891, amounting to L1,170,950, and no less than L422,850 deficiency loss on the loans of 1882, 1884, and 1889, thus leaving little more than 2 millions for railway and harbour works. This 33/4 million Loan Act did not receive the Royal assent until December, 1890, and the stock was issued a few months later at a most unfortunate time. The monetary tension which culminated in 1893 was already felt in the London market, and the credit of Queensland had become much impaired by the fact that during the preceding decade (1880-81 to 1889-90) the colony's obligations had increased by L16,706,834, bringing the funded public debt up to L28,105,684--nearly L70 per head of the population--while railway net earnings were steadily dwindling. [Illustration: BARRON GORGE, BELOW THE FALLS, CAIRNS RAILWAY] The cable soon flashed the unwelcome news that only L1,554,834 was subscribed. After some difficulty a Stock Exchange syndicate was formed to underwrite L1,182,400 of the balance, the price realised for the whole amount taken up averaging L87 6s. 1d. per L100 of 31/2 per cent. stock. Thus the net proceeds of the loan of L3,704,800 were only L3,234,376, a depreciation loss of L470,424. The interest charge on this new loan was L129,668; so that the interest, while nominally 31/2 per cent., was really just 4 per cent. on the money received, and, in addition, at due date (1930), L470,424 depreciation will have to be made good. But the tragedy did not end there, for the money borrowed, or the greater part of it, had not reached the Treasury in 1893, but ranked among the "suspended bank deposits" which then paralysed both Government and private depositors.