The colony of South Australia was founded in 1836, under a system of government and of economical administration altogether new. It must, however, be stated, that this system was in several respects different from that which the projectors imagined. Their intention was to found a chartered colony, resembling those which were established in North America in the seventeenth century. According to their plan, an incorporated company would have exercised, by delegation from the crown, many of the powers of sovereignty within the intended province; and besides disposing of the waste lands, and controlling the finances, would have appointed the governor, enacted the laws, and levied the taxes.

This project did not suit the views of the government at home, and was therefore considerably modified by the act 4 & 5 W. 4. c. 95., the original constituent law of the settlement. The ordinary executive and legislative powers were vested in a governor and council, according to the common method; but in addition to these, a board of commissioners was appointed, one of whom was to reside in the province, who were to have the disposal of the land, and the management of emigration. The whole of the funds raised by the disposal of land was to be devoted to the purpose of conveying labouring families to the colony.

By this act no specific provision whatever was made for what I have termed the preparatory expenses of a colony—the land-surveying, the public works, the foundation of establishments, the construction of roads, and other communications.