The Gold Rushes and Responsible Government
1851 - 1900

The 1840's bequeathed two legacies to the future; the old Legislative Council was reconstituted to include an elected element, thus pointing the way to responsible self-government in the future; and there was a depression which caused a downturn in the country's economy which was not completely reversed until the discovery of gold.

On 22 May 1851 Sir Charles A FitzRoy, Governor General of New South Wales,wrote to the Earl Grey , Secretary of State for the Colonies, that gold had been discovered 'in that part of this Colony which lies to the westward of the town of Bathurst’. By December the volume of work had increased to such an extent in the Treasury that the Treasurer was forced to request an increase in staffing. The Government sanctioned the appointment of one extra clerk with the stipulation that the extra salary was to be defrayed from the Gold Fund.

Throughout the early 1850's debate had gone on as to the best system of responsible government. Wentworth's attempt for an hereditary colonial aristocracy was scornfully dismissed and in its place was put an appointed upper house which was to keep the 'democratic' lower house in order.

The New South Wales Constitution Act received the Royal Assent on 16 July 1855 and the old Legislative Council passed out of existence in February 1856. Elections for the new Legislative Assembly were held from March to April 1856 with the new Parliament first meeting on 22 May 1856. The first Premier was Stuart Alexander Donaldson and he chose Thomas Holt as the Colonial Treasurer.

On 6 June 1856 the Government Gazette announced that 'His Exellency the Governor General directs it be notified, that in conformity with the provisions of the Constitution Act of the Colony, the following gentlemen have been relieved, on political grounds, from the several offices mentioned in connexion with the respective names:

Campbell Drummond Riddell, Esquire, from the officer of Colonial Treasurer and Collector of Internal Revenue.

The Honorable Thomas Holt, Esquire, to be Colonial Treasurer and Collector of Internal Revenue of New South Wales.

The Colonial Treasurer was now a Member of the Legislature, responsible to Parliament and not, as previously, an appointed civil servant as Balcombe  had been. This constitutonal change was reflected in the administrative change which soon took place. A Board of Audit had recommended in June 1856 that the Treasury should be re-organised and in October of that year the Parker Ministry (the third Government under responsible government) detailed the new administrative arrangements for the Colonial Treasury:

The Colonial Treasurer, or Treasurer and Secretary for Finance and Trade: responsible for the supervision and control of Collector of Customs, Chief Inspector of Distilleries, Colonial Storekeeper, Post Master, Shipping Masters.

Inspector of Stamps: Finance generally, custody, collection and disbursement of all Revenues, Trade and Commerces, Taxation, issue and sale of Debentures, Management of the Public Debt, Mint and Gold Receiving Department, the Customs Department, Distribution and Issue of Stamps, Stores, Port and Harbour Regulations, Navigation, including Pilots, Lighthouses, and Telegraphs, Powder magazines.