Before the end of the year the export of gold from Victoria alone had very nearly reached half a million in value. In two years the population of the Victorian gold-fields almost equalled the whole population of the colony at the close of 1850. Most of the diggers lived in tents, and had absolutely no interest in the colony beyond the mere hope of profit from the diggings. If a more profitable field had opened elsewhere, they would have left at once. By the end of the year 1851 the probable area of future discoveries was pretty well recognized. The gold-fields, with few exceptions, were found to lie on one side or the other of the eastern Cordillera or chain of mountains which, beginning with Mount Elliot in Northern Queensland, follows the coast with remarkable precision till it reaches Port Phillip Bay. But all the more northerly part of this chain was unexplored in 1851, and of course there was room for almost any development within such wide limits.
Warned by events in New South Wales, the governments of the other Australian colonies had made preparations for the crisis. Western Australia was too remote to be much affected; and her newly arrived supply of convict labor rendered her contented. But South Australia and Tasmania suffered severely from the drain of population, which set in toward the diggings.
In South Australia, the effect was in some districts almost as if a pestilence had swept away the men, leaving the women and children untouched. Some of the emigrants really deserted their families, but the bulk were honorable men, and remittances of gold soon began to find their way to Adelaide for distribution among relatives in the colony.
After the comparative failure of the gold-diggings in South Australia, the Government had wisely set itself to secure some part of the prosperity of the gold discoveries for its colony by establishing both land and river traffic routes. In these efforts it was highly successful. Many South Australians made handsome fortunes by sending provisions to the Buninyong and Mount Alexander districts, and the new steamers on the Murray proved a source of profit to the colony which lasted until the development of the railroad system. Unfortunately, this prosperity could hardly be realized at the time, owing to the great scarcity of coined money in the colony. In 1851 the privilege of coining was still jealously monopolized by the mint in London; while the rapid expansion of business in the latter part of that year had rendered the supply of coin in Australia totally inadequate to the demand.