The development of the Australian wool market, 1840-1900

Abstract

The growth of the pastoral industry is usually accepted as a major feature in Australian history. Socially and politically the importance of the industry is, perhaps, clear enough: wool was probably the main influence which, in the eighteen-twenties and thirties, led to the break-down of the panel system and the triumph of free Australian enterprise; wool was an important source of political influence throughout the nineteenth century and the focus for a large part of government legislation and administrative action; wool was the chief means of the successful spread of colonial settlement and the pattern of the settlement, based on a highly profitable pastoral industry, has a basic influence on the character of Australian urban development, communication systems and service occupations. The contributions of the pastoral industry to Australian economic development can too easily be misunderstood. Wool did not produce an overwhelming part of Australia's national income and provided, probably, an even smaller part of Australian employment. Directly, it produced a substantial demand for investible funds and was an important avenue for private capital formation. Its outstanding place in the Australian economy of the nineteenth century arose from its dominating position as an export commodity. The growth of a large, highly profitable export industry encouraged a related growth of services, not only in the form of transport and personal services but also of highly specialised banking and marketing agencies. <…>