What was the effect of the discovery of gold on the Australian Colonies? Very much the same as the discovery of rich deposits of any other saleable ore, excepting in this respect, that gold is the one metal that commands an immediate sale, at a high and very slightly varying price. Land, Labour, and Capital are the three great requisites of production. Of these Australia, prior to 1853, had only the first in abundance. The gold mines attracted a rush of emigrants to Australia. But gold mining is a lottery in which the prizes fall to the few. The average earnings of the digger were soon found to be lower than the wages paid in other employments. Hence crowds of men who had been attracted to the mines soon left them, and were ready to follow other pursuits, so that the gold rush gave Australia the second element in production--labour. But the gold which was won, and the demands of the mining population, soon stimulated industry and increased wealth in the Colonies--in other words, the gold rush brought to Australia the third requisite of production--capital. The Australian gold discoveries, therefore, transformed an insignificant penal settlement into a rich and queenly Commonwealth, and saved England from the gold famine, with its disastrous fall in prices, which a sudden expansion of trade must inevitably have produced after Protective duties were abolished. There were, however, two shadows on the picture. The gold rush to Australia depleted the labour market at home. The demands of the Australian Colonies for British goods, after gold had been discovered, were enormous. A sudden diminution in the supply of labour, combined with a corresponding increase in the demand for the goods which Labour produces, naturally led to a demand in England for increased wages. Strikes broke out all over the country. Labour was scarce and business brisk, and though the conflict was, except in rare cases, unaccompanied by violence, it may be said that generally speaking victory lay rather with the workers than with their masters. Wages were forced up, which was perhaps fortunate, because, as the year wore on, it soon became apparent that a bad harvest in England, France, and Germany would seriously increase the price of food.[97] The enormous impetus given to industry, and the rise in wages which followed, enabled skilled labour to bear this increase in the price of bread. The unskilled labourers, however, who from lack of organisation cannot “strike” with much effect, suffered acutely, especially towards the end of the year. But by that time a calamity was within measurable distance, which diverted the minds of the English people from dear bread and bad harvests. That calamity was the Crimean war, which rendered 1853 the last year of “The Great Peace” which followed the battle of Waterloo. [Illustration: STUDY OF A CHILD. (_After an Etching by the Queen._)] [Illustration: OFF THE COAST OF ASIA MINOR (TURKEY IN ASIA).] CHAPTER XXIX. DRIFTING TO WAR.