When the banking crisis occurred in 1893, Mr. (afterwards Sir) Hugh Nelson, who had previously held office with distinction as Railway Minister for about two years, reluctantly took charge of the embarrassed Treasury. Entering Parliament after the general election in 1883, he had from the first given evidence of more than common knowledge of public finance. Mr. Nelson was an exceedingly modest man, and an indifferent public speaker at best; but he possessed courage, thoroughness, and scholarly knowledge. In public matters he always aimed at taking the line of least resistance; but knowing what he knew in March, 1893, his assumption of office as Treasurer must be regarded as an act of heroism dictated by regard for the public welfare. Quietly and unobtrusively he worked, refusing all invitations to appear on public platforms, and while affecting contempt for politicians who constantly apostrophised "the people," he determined to set the affairs of the colony straight. Revenue at that time had almost touched bottom, and was very inelastic; and Mr. Nelson followed the example of his immediate predecessor in keeping a tight hand upon expenditure. For 1892-3 there had been a reduction of outlay of about L70,000 only, as compared with the preceding year, the June deficit having been reduced to L111,676; but in the next year he realised rather less revenue, yet reduced expenditure by L206,000, closing the year with a small deficit of L8,467. As this was the time in which most commercial and financial disaster was suffered from the crisis, this economy was a feat worth accomplishing, although the drastic reduction of expenditure tended to aggravate the crisis by delaying the restoration of confidence. After 1893-4 followed six surpluses.