Increasingly, the convict element was overshadowed by men and women who came to the colony as free people. The British government encouraged migrants who, it was hoped, could employ, discipline, and perhaps reform the convicts. Few arrived until after 1815, by which time the activities of John Macarthur and other pastoralists had shown that New South Wales was well suited to the production of meat and especially wool. During the 1820s the pastoral industry attracted men of capital in large numbers. They were joined in the 1830s and ’40s by some 120,000 men, women, and children who sought to escape the harsh conditions of industrial England. Their passages were in many cases paid from a fund resulting from the decision of the British government in 1831 to sell crown land in colonies instead of giving it away. Often they were carefully selected to remedy imbalances perceived in colonial society, such as the young women—“God’s police”—whom the philanthropist Caroline Chisholm worked to settle in pastoral districts. These migrants brought skills rather than capital and added greatly to the workforce.

The presence of growing numbers of ex-convicts and migrants helped convert New South Wales from a convict outpost to a free colony. Wool was sent to Britain in commercial quantities from 1821, although until 1834 the products of the fisheries, whale oil, and sealskins formed the principal exports. Thereafter wool leaped ahead at a remarkable rate. Wool exports increased from nearly 5 million pounds (2.3 million kg) by weight in 1834 to 14 million pounds (6.4 million kg) in 1850, linking the colony more closely to the English industrial system. New South Wales, replacing Spain and the German states as Britain’s source of wool, was drawn more closely into the British imperial network as an outlet for migrants and a market for investment capital and manufactured products.

All this gave a boost to development in New South Wales. The bounds of settlement spread outward as pastoralists took their sheep and cattle farther afield, “squatting” on land not yet surveyed, policed, or legally available to them. The local government, backed by the authorities in London, sought to impose limits on expansion but had no way of enforcing orders. Influential “squatters” demanded a firm tenure to their land and in 1847 won major concessions. By that time most of the eastern mainland was occupied, country towns had sprung up to meet the needs of surrounding districts, and Sydney, the capital city, had been transformed. Originally little more than the headquarters of an open jail, it had become a thriving metropolis that was a centre of government and the colony’s principal port. There were located the public offices, mercantile houses, and a limited range of manufactures. Early buildings of rudimentary design and rough construction gave way, during and after the days of Gov. Lachlan Macquarie, to gracious architecture, including that of Greenway.

This expansion was at the expense of Aboriginal peoples. The first governors were instructed to “conciliate the affections” of “the natives,” but mutual curiosity soon gave way to misunderstanding, competition for scarce resources, and the impact of disease as the British settlers first struggled to survive and then began to push out the boundaries of their settlements. Pastoral expansion and Aboriginal resistance, led by warriors such as Pemulwuy (a leader from the Botany Bay area who was killed by an Englishman in 1802), led to violent clashes in which large numbers of Aboriginal people were killed. While governors maintained that Aboriginal people should be treated with humanity and as British subjects, the pressure of colonial expansion was accompanied by an increasingly systematic racism. In 1838, following a notorious massacre at Myall Creek, seven white men were hanged at the insistence of the governor, Sir George Gipps. In general, however, the law itself, as well as the difficulties of enforcing it in outlying districts, favoured the settlers, and massacres, incursions, poisonings, and forced dispersals usually went unpunished. During the 1830s attempts were made to safeguard Aboriginal peoples by placing them under supervision in protectorates, but these attempts failed and were abandoned after the coming of self-government in the 1850s.

Movement toward self-rule

The emergence of a free society was accompanied by the growth of opposition to authoritarian government. So long as convicts were sent to New South Wales, it was considered necessary for close control to be exercised by governors who possessed virtually absolute powers. These they discharged in a responsible manner: the naval officers who ruled between 1788 and 1808—Arthur Phillip, John Hunter, Philip Gidley King, and William Bligh—were dedicated, hardworking administrators. From Phillip’s departure in 1792, however, they met opposition from the New South Wales Corps, a military force that had been recruited to perform garrison duty. Its officers were allowed to own land and, contrary to instructions, they also began trading in a number of goods, including liquor. Efforts to check them failed, and they used their influence to undermine the positions of Hunter and King. Bligh, a courageous, energetic, but abrasive and tactless man, already noted for the mutiny on the Bounty, proved more resistant. A crisis developed that culminated with his overthrow in the Rum Rebellion of January 1808.

The corps ruled under successive commandants until 1810, when it was recalled, and Lachlan Macquarie arrived with his own regiment. A Scot of energy and vision, he ruled from 1810 until 1821, restoring order and bringing stability to a colony whose interests he did much to promote. His autocratic ways, however, led to an inquiry begun in 1819 by Commissioner J.T. Bigge, and a small Legislative Council made up of government officials and nominated colonists was established in 1823. This body and its powers were enlarged in 1828, but responsibility still lay with the governors, who were answerable only to the Colonial Office in London.

Conflict developed during the 1820s and ’30s as pressure for an increased say in government mounted among free colonists. A group called “emancipists” or “Botany Bay Whigs,” led by the local-born, Cambridge-educated lawyer and pastoralist W.C. Wentworth, demanded an elected Legislative Council. This was opposed initially by a small but influential conservative faction, known as “exclusives” or “Botany Bay Tories,” that clustered around John Macarthur. In response to demands from the emancipists, British authorities sanctioned the introduction of trial by jury into the civil and criminal courts, but they refused to reform the legislature while convicts were arriving. Representative government was finally introduced in 1842, two years after convict transportation was abolished. Yet the new legislature, composed of 36 members, 24 of whom were elected, had limited powers.

Once convicts ceased to arrive, the old division between emancipists and exclusives faded. The two groups, which were composed mainly of wealthy landowners, came together under Wentworth’s leadership. During the 1840s they sought to tighten their hold over the land and the resumption of convict transportation to ease a labour shortage. This brought them into conflict with urban elements who saw the resumption of transportation as a threat to their well-being. Wentworth and his associates, however, predominated among the elected members of the legislature, and they continued to press for reforms designed to secure self-government and guarantee their own supremacy. In 1856, as part of a series of changes affecting most of the Australian colonies, the British government established in New South Wales a new legislature composed of a Legislative Council and a wholly elected Legislative Assembly. Power passed from the governor to whichever political leader from the lower house possessed majority support. Representative government had given way to responsible government, and the premier had replaced the governor as the chief executive officer.

The new constitution failed to give the landed gentry the protection it sought. After 1856 this conservative group lost ground to the urban middle class, which came to dominate political life. Political parties had not yet emerged, and between the 1860s and the 1880s New South Wales was governed mainly by loose-knit factions whose presence resulted in frequent changes of ministry. Fortunately, both a well-established public service and the broadly common outlook shared by the leading political figures made for stability. Liberalism was the dominant political creed, and there was general agreement as to the desirability of fashioning a society that offered opportunity to as wide a section of the white community as possible.

Beginning in 1861 with the land acts for which John Robertson was responsible, attempts were made to reduce the power of the squatters and open up the lands to small settlers, or selectors. In 1871 a Trades and Labour Council was formed to bring greater coordination to union demands on working hours and conditions. Reforms were also introduced in the sphere of education that culminated with the 1880 Public Instruction Act. This sought to end the existing dual system under which church and state schools operated side by side. Thereafter it was intended that primary schools would be provided solely by the state, which sought to ensure that all children attended them. The act was opposed by the Roman Catholic Church, which objected to education being controlled by secular authorities. The church continued with its own schools, perpetuating the dual system.