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 The Citizens ADELAIDE AND VICINITY 79 Commissioners was uncomfortable. The money at their disposal was swallowed up, and they had nothing with which to meet the bills. In April a rumor came to hand, by way of Tasmania, that Governor (iawler had been recalled, and his successor appointed. This, following upon the previous incident, caused concern, and was taken as a dismal portent. Then came a despatch from the Commissioners stating that their funds were absorbed, and informing the Governor that he must draw no more bills. When the meaning of such an order was fully appreciated, it was rightly apprehended that the chief means of support of the Province had been withdrawn, and that the Government would have to enormously reduce its expenditure in consequence. Hundreds of people would be thrown out of work, and hundreds ruined. Governor Gawler again called together his Council, and informed them that he had one of two courses to follow : he must curtail the expenditure to the bounds of the revenue by reductions in all the departments, or he must act as authorised by the instructions of the Colonial Office in cases of "pressing emergency," and draw directly on the Imperial Exchequer in order to preserve the Province from destitution and Ixuikruptcy. He followed the latter course, but events advanced rapidly to the climax, and within a few months of the arrival of the first tidings, the Province was in a state of disorder and stagnation. Governor Gawler firmly believed in the resources of South Australia, and still hoped that the issue would yet be satisfactory. His faith was warranted, but colonists had to pass through much tribulation before the expectation was realised. On May 10, Captain Grey arrived in the ship Lord Glcnelg, bringing with him news of Governor Gawler's recall, and of his own appointment as administrator. The blow to the Governor was sudden and somewhat unexpected, especially as it was the first notice he had that his policy was not favored or upheld by the home Government — the only indication even of dissatisfaction was received a few months earlier, when the Secretary for the Colonies refused his application for an increase of salary, on the grounds that the finances of the Province would not admit of it. He felt the recall very keenly, and his friends regarded it as "an arbitrary and discourteous proceeding." The document, which was dated Downing Street, December 26, 1840, was couched in the language of cold formality, merely stating that he was relieved from his office because of the bills which had been drawn on the Commissioners in excess of his authority. In opposition to this stereotyped epistle, it has been shown that he was instructed to exceed the prescribed expenditure in cases of emergency, and that the Commissioners had not on any occasion objected to his public works policy with its attendant expenditure. As was afterwards stated by a Royal Commission, the fault was rather in the Act than in the administrators, and the plan of blending the principles of a chartered and a Crown colony had not been successful. At home, as in the Province under Governor Hindmarsh and Resident Commissioner Fisher, there were two heads - the Board of Commissioners and the Secretary for the Colonies— and the division was unfortunate. Not one colonist doubted the earnestness and sincerity of Governor Gawler. He was honest, and he was unfortunate. Latterly he had applied /56,ooo, proceeds of land sales, to useful purposes other than immigration, but such an appropriation was