Squatters

The rise and rise of the squatter provides the basis for much of Victoria's wealth prior to the gold rush.

Today, a squatter generally refers to someone who takes up residence in a place, without proper authority. During the early years of Australia's settlement, 'squatter' was initially used as a derogatory term to describe someone who established a sheep or cattle farm on land they cleared - with or without government approval.

However, the mid-1820s saw startling growth in the amount of Crown land being used for farming without legal title, usually by men from the upper classes of society. As the export of Australian wool became a major source of revenue, the term ‘squatter' came to mean a wealthy landowner:

No body of men ever created so much wealth in so short a time. The squatter founded Melbourne whose history from first to last is unprecedented and unequalled in the annals of colonization.

– Edward Micklethwaite Curr, New Zealand Spectator, 16 Jan 1856

By the time gold was discovered, in 1851, squatters' properties took up almost every inch of usable land, leaving very little to be occupied by the rush of unsuccessful gold diggers. Resentment grew against the squatters' monopoly:

The great sheep-owner may have half a million of acres for nothing—may accumulate a hundred thousand pounds by selling wool and wethers [...] but [...] the man who comes here to create a home by his industry, and to aid in developing the resources of the country—is to be ignominiously driven away from it.

– The Argus, 1 & 8 February 1853

This growing resentment led to the formation in 1857 of the ‘Land Convention', which began campaigning for land reform. It was successful, and 1860 saw the establishment of the Nicholson Land Act, which opened up squatters' land to anyone who could afford to buy it, and restricted the amount of land an individual could own.

Unfortunately, the Act wasn't very effective. With the help of ‘dummy' bidders, squatters could still purchase whatever land they required. They also used their knowledge of the land to buy up the best locations, leaving only infertile ground for farming.

However, despite their dubious methods of ensuring their own success, squatters had an enormous impact on Victoria's early economic expansion and development.