a most disastrous flood took place and overwhelmed the unfortunate cultivators of the Hawkesbury and Nepean in ruin; the greatest distress was also experienced throughout the Colony from the consequent scarcity. In February this year wheat was reduced as low as seven shillings and maize to two shillings and sixpence sterling in the market, as in consequence of the stores not being opened the growers were compelled to sell it at this low rate; but in October in the same year the average of wheat rose to twenty-five shillings and sixpence sterling per bushel and maize to twenty shillings."
This was stated before the Committee on Gaols, who asked:—
"Was that part of a general system—the opening of the stores at so late a period in the year. …?"
"Of late years it has been," Riley answered.
"Can you give to the Committee any reason why such order was issued?"
"I really cannot."[1]
Riley laid great stress on the injuries suffered by the settlers from the importations of Bengal, several of which took place between 1812 and 1817. The injudiciousness of the Government in taking such a course is obvious. The whole raison d'être of a fixed price was to give constant encouragement to growers and to equalise the ups and downs of the market. By importing from India, Macquarie made the demand quite as precarious as it could have been under a competitive system, while the producers gained none of the profit to be reaped from a free trade. The farmers were unable to take full advantage of a scarcity, and yet not allowed the compensation of a fair price in time of surplus. The small settlers suffered severely in 1813 and 1814, although a few wealthy men may, as Macquarie said, have been lucky in extorting high prices from the Government.
Macquarie himself was ready to admit that something further in the way of encouragement was needed by the settlers.
He thought much would be accomplished by permitting the establishment of distilleries which would provide a wider market for surplus grain.[2] The opposition of the Colonial Office being
