In his anxiety the Lieutenant-Governor had at first (December, 1851) proposed to double the license fee of thirty shillings a month; but the proposal had provoked such a storm of opposition that he withdrew it. The revenue from licenses was the source of much contention. The Government alleged that it was not taxation, but rent, of Crown lands, and at first devoted it exclusively to the service of the gold-fields. The diggers denounced it as taxation without representation; and the Legislative Council, almost necessarily in opposition to the Government while the latter was administered by nominees of the Colonial Office, refused to make up deficiencies out of the general revenue. Thus the Lieutenant-Governor was placed between two fires. If he enforced the license fees he angered what was rapidly becoming the largest part of the population; if he relinquished them, he left himself without means to carry on the government of the gold-fields. From this dilemma he was saved by the receipt of a general permission from the Colonial Office, toward the close of 1852, to deal with the gold revenue in the same manner as ordinary revenue. By placing this fund at the disposal of the Colonial Legislature, the Home Government not only removed a great grievance and relieved the hands of the Lieutenant-Governor from the shackles previously laid upon them by the Colonial Office, but it took a substantial step toward the end that was now acknowledged on all sides to be the ultimate outcome of the new discoveries; viz., the introduction of responsible government. The same despatch contained a still more important concession, authorizing the Lieutenant-Governor to devote the remaining part of the land revenue--viz., that arising from sales and pastoral licenses--"to the purposes rendered urgent by the present crisis." As this fund was jealously reserved by the existing constitutions of the Australian colonies, and devoted, under the provisions of the Crown Land Sales Act, exclusively to the purposes of emigration and public works, it will be seen that the Colonial Office took a strong step in sanctioning its diversion. But it must be observed that the expenditure of this additional fund was placed exclusively in the hands of the Lieutenant-Governor and his Executive Council, acting independently of the Colonial Legislature.