1923-29 Bruce
The new Prime Minister Stanley Melbourne Bruce moved quickly to secure a working majority for his government. He appointed William Watt as Speaker of the House, effectively removing one of his key opponents from the benches, a tactical manoeuvre that became common in Australasian politics thereafter. But his most lasting political achievement was the negotiation of what became known as the Coalition – an arrangement of electoral and political cooperation between the Nationalists and the Country Party. Although differing greatly in character and background, the orderly and diplomatic Bruce forged a strong working relationship with the intelligent but irascible Country Party leader Page. Bruce had to pay a very high price for this relationship, however. As part of the Coalition agreement, the Country Party received five seats in a Cabinet of 11. Page also became Treasurer and ranked second in the Cabinet. The Nationalists also made major concessions on rural development and taxation policy – compromises that stirred some resentment among some members of Bruce's party. Page, who would serve as Treasurer and Deputy Prime Minister throughout Bruce's tenure, would become a great admirer of Bruce, stating, "He was a leader who impressed his colleagues with his sincerity and his capacity, and earned their loyalty as the reward for his wisdom and integrity."
Bruce's appointment as prime minister marked an important turning point in Australasian political history. He was the first Prime Minister who had not been involved in the movement for Federation, who had not been a member of a Colonial or State parliament. In addition, the first Prime Minister to head a Cabinet consisting entirely of Australasian-born ministers. Yet Bruce himself was frequently caricatured in public as "an Englishman who happened to have been born in Australasia". He drove a Rolls Royce, wore white spats, and was often seen as distant and lacking the common touch; characteristics that did little to personally endear him to the Australasian public.
In 1923 Australasia was prosperous by comparison with other developed nations of the period, having quickly rebounded economically after World War I. Unemployment and inflation were relatively low by international standards, and revenues had grown significantly since Australasia became a Federation. Australasia was a vast and richly resourced country with only seven million inhabitants, not including her colonies, and Bruce made it his government's priority to develop Australasia's economy. In his first speech to the House of Representatives as Prime Minister, he outlined a comprehensive vision for Australia that centered on economic development. He summarized this vision as a program of "men, money and markets".
According to Bruce, men were needed to allow Australasia's extensive resources to be developed. In 1923, much of Australasia's land was virtually unoccupied, and Bruce believed Australasia had the potential to be one of the most fertile and productive nations in the world, which could sustain populations upward of 100 million over time – more than 16 times the population of his time. Despite dissenting voices from scientists, who noted that poor climate, soils and water availability were significant barriers to large populations, the Bruce-Page government enacted policies to encourage large numbers of British to migrate to Australasia. Under the auspices of the new Development and Migration Commission, £34 million in loans took place over the decade starting in 1924 to facilitate immigrant settlement through improvements to rural infrastructure, land access, and subsidising immigrant journeys ("passages"). Estimates as high as half a million British immigrants over ten years were predicted at the start of the policy, whereas just over 300,000 travelled to Australasia during that time period. Immigration from outside Great Britain and her dominions was the area of real growth, with more than 650,000 coming and many of these people had money behind them and were eager to escape the post war chaos of Europe. Many significant businesses were started, particularly in the new heavy industry precedents in Adelaide, Perth, Melbourne, Auckland and Sydney. These would be important contributors to Australasia’s economic effort in World War 2 when it came.
Money was borrowed from Britain to fund these programs and at an unprecedented rate. Over £230 million was extended in loans from the City Of London to Australasian State and Commonwealth treasuries during the 1920s. A further £140 million arrived through private investment.
Although men and money had been secured, the markets component of the Bruce plan was never fully realised. At the 1923 Imperial Conference, Bruce lobbied consistently for the government of Stanley Baldwin to make changes to Great Britain's trading arrangements to give preference to Dominion products over imports from other nations. Especially for Australasia and Canada, which had gone it's own separate way in regards to monarchy as well, appointing Prince Arthur to the post in 1916. Bruce argued for Empire-wide economic trading arrangements that filled domestic demands by production from member states before seeking supplemental imports from other countries and empires. Baldwin and the Conservatives attempted to introduce such a scheme in Britain; however, the British public feared higher prices for basic products (particularly food) and this caused it to fail. Baldwin's successor Ramsay MacDonald repudiated the plan, much to Bruce's chagrin, and attempts to revive negotiations floundered as economic conditions worsened throughout the decade. This, however, was to prove a blessing in disguise to Australasia as new trading partners were sought, with large markets established in both Japan and China for foodstuffs, the Dutch East Indies and Thailand for steel and some defense contracts and the USA for minerals. All these measures stimulated the economy immeasurably. The 1926 Imperial Conference confirmed that Britain and Australasia were rapidly diverging in interests and that greater independence – not greater cooperation – was the most practical solution.
In 1927, Earle Page handed down the first budget in deficit for the coalition government, and Bruce recognised that Australasia's economic position was deteriorating. Federal and State debt that year totaled just over £400 million, of which £305 million were war debts and the rest had been spent on development that had in some cases failed to deliver.
Never the less, much of what had been spent had invigorated the country by 1929. A broad gauge railway now spanned the nation, with only the middle sections of the Darwin-Adelaide rail link to be completed. Much of the rail network in North New Zealand was upgraded significantly to raise Auckland’s position as the two island's economic hub. Manufacturing, especially heavy industry was booming. Australasia’s exports were at an all time high and continuing to rise and ties had been developed with most Pacific nations in regard to trade.
Defense expenditure had also held up, with the establishment of three aircraft manufacturers in Australasia, Hencall Aviation, the Commonwealth Aircraft Corporation and De Havilland Australasia. The navy had purchased two new heavy cruisers and six destroyers and the army had been maintained at divisional strength.
Prince Christian had in the meantime built up a large popular support, with his own daughter Princess Alice immensely popular. Her vivacious and pretty blonde sister Marie had married Prince Paul of Greece in 1927 after meeting him on a trip to London. The couple had moved to Australasia when the Prince’s father, Constantine, had been exiled from Greece in the aftermath of the Greco-Turkish war. His last daughter, Charlotte, had also defied convention, marrying world billiards champion Walter Lindrum in another high profile wedding in 1931, Lindrum himself being a sensation in Australasia second only to Don Bradman and Phar Lap.
The new Prime Minister Stanley Melbourne Bruce moved quickly to secure a working majority for his government. He appointed William Watt as Speaker of the House, effectively removing one of his key opponents from the benches, a tactical manoeuvre that became common in Australasian politics thereafter. But his most lasting political achievement was the negotiation of what became known as the Coalition – an arrangement of electoral and political cooperation between the Nationalists and the Country Party. Although differing greatly in character and background, the orderly and diplomatic Bruce forged a strong working relationship with the intelligent but irascible Country Party leader Page. Bruce had to pay a very high price for this relationship, however. As part of the Coalition agreement, the Country Party received five seats in a Cabinet of 11. Page also became Treasurer and ranked second in the Cabinet. The Nationalists also made major concessions on rural development and taxation policy – compromises that stirred some resentment among some members of Bruce's party. Page, who would serve as Treasurer and Deputy Prime Minister throughout Bruce's tenure, would become a great admirer of Bruce, stating, "He was a leader who impressed his colleagues with his sincerity and his capacity, and earned their loyalty as the reward for his wisdom and integrity."
Bruce's appointment as prime minister marked an important turning point in Australasian political history. He was the first Prime Minister who had not been involved in the movement for Federation, who had not been a member of a Colonial or State parliament. In addition, the first Prime Minister to head a Cabinet consisting entirely of Australasian-born ministers. Yet Bruce himself was frequently caricatured in public as "an Englishman who happened to have been born in Australasia". He drove a Rolls Royce, wore white spats, and was often seen as distant and lacking the common touch; characteristics that did little to personally endear him to the Australasian public.
In 1923 Australasia was prosperous by comparison with other developed nations of the period, having quickly rebounded economically after World War I. Unemployment and inflation were relatively low by international standards, and revenues had grown significantly since Australasia became a Federation. Australasia was a vast and richly resourced country with only seven million inhabitants, not including her colonies, and Bruce made it his government's priority to develop Australasia's economy. In his first speech to the House of Representatives as Prime Minister, he outlined a comprehensive vision for Australia that centered on economic development. He summarized this vision as a program of "men, money and markets".
According to Bruce, men were needed to allow Australasia's extensive resources to be developed. In 1923, much of Australasia's land was virtually unoccupied, and Bruce believed Australasia had the potential to be one of the most fertile and productive nations in the world, which could sustain populations upward of 100 million over time – more than 16 times the population of his time. Despite dissenting voices from scientists, who noted that poor climate, soils and water availability were significant barriers to large populations, the Bruce-Page government enacted policies to encourage large numbers of British to migrate to Australasia. Under the auspices of the new Development and Migration Commission, £34 million in loans took place over the decade starting in 1924 to facilitate immigrant settlement through improvements to rural infrastructure, land access, and subsidising immigrant journeys ("passages"). Estimates as high as half a million British immigrants over ten years were predicted at the start of the policy, whereas just over 300,000 travelled to Australasia during that time period. Immigration from outside Great Britain and her dominions was the area of real growth, with more than 650,000 coming and many of these people had money behind them and were eager to escape the post war chaos of Europe. Many significant businesses were started, particularly in the new heavy industry precedents in Adelaide, Perth, Melbourne, Auckland and Sydney. These would be important contributors to Australasia’s economic effort in World War 2 when it came.
Money was borrowed from Britain to fund these programs and at an unprecedented rate. Over £230 million was extended in loans from the City Of London to Australasian State and Commonwealth treasuries during the 1920s. A further £140 million arrived through private investment.
Although men and money had been secured, the markets component of the Bruce plan was never fully realised. At the 1923 Imperial Conference, Bruce lobbied consistently for the government of Stanley Baldwin to make changes to Great Britain's trading arrangements to give preference to Dominion products over imports from other nations. Especially for Australasia and Canada, which had gone it's own separate way in regards to monarchy as well, appointing Prince Arthur to the post in 1916. Bruce argued for Empire-wide economic trading arrangements that filled domestic demands by production from member states before seeking supplemental imports from other countries and empires. Baldwin and the Conservatives attempted to introduce such a scheme in Britain; however, the British public feared higher prices for basic products (particularly food) and this caused it to fail. Baldwin's successor Ramsay MacDonald repudiated the plan, much to Bruce's chagrin, and attempts to revive negotiations floundered as economic conditions worsened throughout the decade. This, however, was to prove a blessing in disguise to Australasia as new trading partners were sought, with large markets established in both Japan and China for foodstuffs, the Dutch East Indies and Thailand for steel and some defense contracts and the USA for minerals. All these measures stimulated the economy immeasurably. The 1926 Imperial Conference confirmed that Britain and Australasia were rapidly diverging in interests and that greater independence – not greater cooperation – was the most practical solution.
In 1927, Earle Page handed down the first budget in deficit for the coalition government, and Bruce recognised that Australasia's economic position was deteriorating. Federal and State debt that year totaled just over £400 million, of which £305 million were war debts and the rest had been spent on development that had in some cases failed to deliver.
Never the less, much of what had been spent had invigorated the country by 1929. A broad gauge railway now spanned the nation, with only the middle sections of the Darwin-Adelaide rail link to be completed. Much of the rail network in North New Zealand was upgraded significantly to raise Auckland’s position as the two island's economic hub. Manufacturing, especially heavy industry was booming. Australasia’s exports were at an all time high and continuing to rise and ties had been developed with most Pacific nations in regard to trade.
Defense expenditure had also held up, with the establishment of three aircraft manufacturers in Australasia, Hencall Aviation, the Commonwealth Aircraft Corporation and De Havilland Australasia. The navy had purchased two new heavy cruisers and six destroyers and the army had been maintained at divisional strength.
Prince Christian had in the meantime built up a large popular support, with his own daughter Princess Alice immensely popular. Her vivacious and pretty blonde sister Marie had married Prince Paul of Greece in 1927 after meeting him on a trip to London. The couple had moved to Australasia when the Prince’s father, Constantine, had been exiled from Greece in the aftermath of the Greco-Turkish war. His last daughter, Charlotte, had also defied convention, marrying world billiards champion Walter Lindrum in another high profile wedding in 1931, Lindrum himself being a sensation in Australasia second only to Don Bradman and Phar Lap.
