SOUTH AUSTRALIA. [From the Maitland Mercury, August 12 ]

New Zealand Spectator and Cook's Strait Guardian, Volume VIII, Issue 742, 11 September 1852, Page 3

SOUTH AUSTRALIA. [From the Maitland Mercury, August 12 ]

We have received files of Adelaide papers to the 31st July. Some six or more months ago it will be remembered that the colony of South Australia 1 was apparently on the point of ruin, being ' threatened with the loss of nearly all the able- '- bodied labourers and farmers, who were off to the * Victoria Diggings. The celebrated Bullion Act ' was passed by the Council, with the assent of the Governor, although avowedly contrary to his opinion, to restore the colony to prosperity, by establishing an assay office *wnich should receive gold and cast it into ingots of standard fineness, which, valued at £3 Us. per ounce, should be - received by the banks ; the banks being in turn empowered to issue notes not redeemable in cohvon demand, on the security and to the amount of such ingots as were lodged in their coffers. The anticipated effect of this measure i was that gold dust being thus raised and maintained in value above the price obtainable in the-neighbouring colonies, and more particularly in Victoria, the South Australian diggers would be tempted to send their gold there for sale; and possibly to return themselves. The operation of the measure has proved to bring about this effect, and the exceeding and continued richness of the Mount Alexander diggings had caused such an abundance of gold to be poured into the Adelaide assay office, and through it into the banks, that another embarrassment has now arisen, the banks being unable to make notes fast enough to meet the demand, for want of mechanical force. Various expedients were tried, the use of certified cheques for large amounts, the increase of £50 and £100 bank notes, &c, but all failed to meet the difficulty presented by the increasing stream of gold ingots. The commercial community devised a new_plan, the issue by the assay office of stamped gold tokens or small ingots, of a fixed value, to serve as coins for. circulation. After some difficulty and hesitation, the Governor was .convinced by their arguments, and had notified that on an early day the assay office would com-

mence delivering sucli tokens to 'the banks* valued at £3 11s. per ounce for standard fineness, which would be subject to the provisions of the existing law. Up to the 30th July the total gold delivered to the assay office had amounted to £834,000, valued "at £3 11s. per ounce. But the great richness of the Victoria diggings had contributed to the re- action at Adelaide in another way. It will be remembered that so great was the fear of commercial ruin, and so suddenly did the customs duties on imports fall off, that the Governor, in anticipation of a very deficient revenue, dismissed many officials, and lowered for the time the salaries of all others. It appears that at that time there was a great glut of imported goods in Adelaide, and it was feared that the merchants and traders would be involved in general ruin from the impossibility of selling these goods, and meeting their engagements. But gradually a large re-export trade to Melbourne sprung up, to meet the excessive demand of the digging population, and the result now is that the merchants and traders of Adelaide are better off than ever, having sold all their goods at high figures, and still retaining an active trade, now aided by the expenditure in Adelaide of numerous returned diggers. Concurrently with this brisk trade in re-ex-porting previous imports, an equally brisk export trade of colonial produce has been main- ; tamed ; so that the exports from Adelaide, during the last six months, have greatly exceeded those of any previous six months. During the first six months of 1851, before any gold digging disturbances had arisen, the exports from Adelaide made a total of £378,000 ; during the first six months of 1852 they have amounted to £730,000, of which £265.000 was imports reexported, and no less . than £365,000 colonial produce. The imports, on the contrary, had diminished, being £395,000 in the first period, and £278,000 in the last. The Governur had commenced paying the officials their full salaries again. The balance of emigration since November last was still against the colony, 17,898 persons having left, and only about 11,000 arrived, of immigrants and returned diggers. Burra Burra Shares were quoted at £126, a considerable rise since the last quotation we observed. Money on freeholds commanded 12£ to 15 per cent., a high rate in the presence of an alleged plethora of money. The Assat Office. — We hear that Mr. Babbage,has cleared the colonies of crucibles and nitric acid, two articles indispensable to the process of assaying. He now manufactures both on the premises. He makes crucibles equal to the best from London, of clay procured from Echunga. This is another instance of wonders produced by necessity. — A. Chron. Dear Times. — The community of Adelaide are now complaining grievously of the high price of provisions. Bread is up to 6d per loaf. Fuel, water, and other articles of first necessity, are also exorbitantly dear. Such a state of things bears with great severity on persons holding official situations, who have to keep up a respectable appearance, and who derive no benefit from the gold discoveries. Many clerks in public offices can scarcely support their families at present, and if provision for this emergency is not made, there will be a very extensive emigration of efficient officers in a short time to the gold fields. The police cannot live on their pittance, and are going off almost in a body. — A. Chronicle. Joys and Rejoicings. — It is quite refreshing now-a-days to see the gay doings in the way I of marriage parties and grand processions occupying our streets. The old saying of easy won, easy spent, is the rue in Adelaide, to the intense satisfaction of the drapers, milliners, publicans, and others who deal in the good things of this life. — A. Chronicle.