the trader could carry on his operations with punctuality, and the working classes could be paid for their work in cash, instead of in wheat or other inconvenient articles.
It was provided that the capital and shares in the proposed bank could be increased as circumstances demanded by the authority of a majority of shareholders. Any person holding ten shares was eligible to a seat on the directorate, and four shares entitled the holder to a vote, but no person could have more than four votes, whatever number of shares he held. The directing board must comprise seven members, elected by ballot. The managing cashier was appointed by ballot, at a salary of £100 per year, and he was required to find two sureties in £250 each and himself in £500. He must attend the bank from 10 until 2 o'clock each day. A statement of specie, deposits, bills discounted or dishonoured, and the amount of notes in circulation was to be published quarterly. Discounts or advances were to be made at the rate of 12½ per cent. per annum, and were limited to three months, when they might be renewed, if approved, for a further three months, on payment of £25 per cent. of the amounts. The notes for circulation were to be for £1 each, no interest was to be allowed on running accounts, and interest on fixed deposits was awarded at the discretion of the directors. A reserve of one-fifth of the profits was decided upon to meet contingencies. Other clauses of the prospectus provided for periodical meetings of directors and general meetings of shareholders.
There were numerous applications for share, and on the 18th of May a meeting was held, when Mr. G. Leake took the chair. A board of directors was elected, and comprised Messrs. G. Leake, W. L. Brockman, S. Moore, P. Brown, L. Samson, W. Habgood, and R. Hinds. Mr. Marshall Macdermott was appointed by ballot manager and cashier of the new institution.
On the 1st June, 1837, the Bank of Western Australia commenced business; the fruits thereof were immediate and pronounced. The ostensible capital was set down at £10,000, and £25 per cent. was to be paid on each share. So great was the credit of the institution that it was a long while before it was found necessary to call for more than a small part of the proposed funds. At the very inception of the bank deposits were made by customers to the extent of £4,000. A stimulus was given to development work, and the good effects of having the bank in the colony were felt in every branch of industry, and, moreover, resulted in colonists extending their enterprise to quite new sources of wealth. A dividend was paid in 1838.
Previous to the formation of this institution the people were branching out from the two primary industries, but it was only after the bank had begun its work that any special efforts were made. They knew the colony to possess varied sources of wealth, but because of the abundance of whales which they saw inhabiting the oceans they turned to whaling as the easiest and most profitable outlet for their energy. American and French whalers successfully exploited the waters on the south-west and south coasts, especially in the vicinity of King George's Sound, and colonists conceived that the inauguration of such an industry in the colony would materially add to their wealth. For many months proposals were intermittently made to float a whaling company. The want of capital stood in the way at first, and colonists looked upon the scheme as in itself excellent, but at the same time beyond their immediate power.
But when returns were being received from the land, and the shopkeepers were obtaining money and profits from the sale of their goods, serious consideration was given to the proposals. The upshot was the issue of a prospectus for a whaling company in Fremantle in August, 1836. It was not their wish that outsiders should benefit by this wealth, which was by rights the property of colonists, and the Government was even approached to decide on the legality of "foreign" ships robbing Western Australian waters. The company was floated into thirty shares at £50 each, but in the absence of proper gear it was not possible to begin operations until the middle of 1837.
Boats were secured for the purpose in 1837, and by April the company was ready to begin operations. In March the American whaler Cambrian anchored at Fremantle with 800 barrels of oil on board. The master supplied the Fremantle Whaling Company with suitable gear, and colonists waited with interest for the results of the new industry. The pioneer church at Perth was purchased, and portions of the building were removed to Carnac and used for the erection of a store and of quarters there. Several hands left the Cambrian and threw in their lot with the pioneer company at Fremantle.
Even before work was begun a second whaling company was established, principally among Perth residents and agriculturists on the Swan, and named the Perth Fishing Company. The new venture was divided into sixty shares at £10 each; land was secured side by side with some owned by the Fremantle Company at Arthur Head.
The two companies obtained their staff of men principally from among the labourers in the district, thus causing a great scarcity of farm hands on the various estates. Whaling was the prevailing subject of conversation for some time, and excitement was general throughout the settlement. On the 10th June guns were fired for two or three hours in succession at Fremantle, and proclaimed the memorable event that the first whale had been caught in Cockburn Sound. Mr. Thomas Peel observed two whales in the Sound while proceeding from the Murray River to Fremantle by boat. He reported the circumstance at Arthur Head, and a boat was immediately manned and despatched to chase the monsters. The party stationed at Carnac Island caught sight of them at about the same time and joined in the pursuit.
The Carnac boat came up to the prey first and attached a harpoon. The whale dashed through the water with such amazing rapidity that the prow of the boat was dangerously dragged under the water, and the men were forced to cut the line. The Fremantle boat now came within spearing distance. The harpoon was hurled successfully, and the whale was eventually captured. It was drawn to Arthur Head, and there relieved of its oil, yielding four tuns. There was some disagreement as to whom this whale belonged to. According to the generally recognised law of whaling the first thrower of the harpoon has the first right to the prey. But the Fremantle boat captured it. The proceeds were divided by the contending companies.
A second whale was captured in the same week, and thenceforth whaling was carried on with activity. One huge whale was brought on land and treated so unsatisfactorily that most of the blubber was lost. The putrifying flesh caused such an annoyance to the townspeople at Fremantle that they half regretted embarking on the enterprise.
Early in July, The Settler, a small craft owned by the party at Carnac, broke away from her moorings at the island. This took place at night, and in the morning when the men descried the derelict drifting aimlessly northwards to a fresh breeze, a boat containing six men went off to secure her. Those on the island soon lost sight of the crew. Two days later they sailed over to Fremantle and were surprised to learn that the men had not
