The large increase in the population of Australia, in the early 'forties, gave point to the demand for better means of communication with the interior of the continent than then existed, and numerous projects for railway construction were mooted. Most of them were purely fantastic, and based on an erroneous view of the cost of railway equipment and construction; but rumours concerning them had reached England, and in January 1846 Gladstone, who was at that time Secretary of State, sent a circular despatch to the Governors of the Australian colonies, in which he indicated the principles which should govern local legislation in railway matters. Gladstone's instructions related to the initial securing of capital, the right of the Government to amend railway regulations, the carriage of mails and of troops over all lines, and various other matters of like character. The despatch left great freedom to the local legislatures in drawing up their Railway Bills, but gave useful general outlines, which the experience of the United Kingdom suggested should be embodied in such legislation for the public good.

NEW SOUTH WALES

Prior to the gold discoveries the Government of New South Wales had contented itself with the maintenance of four main roads leading out of Sydney, which were extended as settlement advanced, the subsidiary roads being practically uncared for.