Two causes have been acting simultaneously in creating this great rise in the price of all the necessaries of life, in those countries where the gold finders have become suddenly enriched by the discoveries of these “placers.” In the first place, population increasing more rapidly than the supply of food, has necessarily caused a rise in price, and this consequent increase in price, is out of all proportion to the deficiency of supply. Who does not know that a deficiency of one-sixth, or even of one-tenth of the crop of grain, frequently doubles, or even trebles, the price during the famine. Such was the case in France and England in 1846; and without facilities of communication, and the cheapness of carriage, the result, even at that period, would have been much more calamitous. Can we be astonished, then, that in a country where civilization is but just established, where roads, canals, and railroads are wanting, the evils must be felt in a greatly increased degree? Another cause is the very abundance of the precious metals. Gold, when amassed by handfuls, instead of being collected in very small quantities, and with great labour, must necessarily lose a large part of its value. The diminution of the price of gold and silver is, generally, only shewn by the increase in the price of every other article. The nominal value of the monetary sign remains the same, but its power diminishes in proportion to its increase in quantity, unless some counteracting cause, such as an excessive supply of provisions, &c., should step in and re-establish the equilibrium. Up to the present time, every progress in mining in Australia is retarding the proper care and attention to the breeding of cattle. Van Dieman’s Land, which produced food for other districts of Australia, is likely, it is said, to require an import of food for her own people. It was true that the crops at the end of 1851, presented every appearance of a magnificent harvest, but how could a harvest be got _in_ on an island inadequately supplied with labour, and where the people are deserting daily for other places?