It was found that nothing sold so well among the convicts as rum, their favourite liquor; and, rather than not make money, the officers began to import large quantities of that spirit, thus deliberately assisting to demoralise still further the degraded population which they had been sent to reform. So enormous were the profits made in this debasing trade that very few of the officers could refrain from joining it. Soon the New South Wales Corps became like one great firm of spirit merchants, engaged in the importing and retailing of rum. The most enterprising went so far as to introduce stills and commence the manufacture of spirits in the colony. By an order of the Governor in Council this was forbidden, but many continued to work their stills in secret. This system of traffic, demoralising to every one engaged in it, was shared even by the highest officials in the colony. In the year 1800 the chief constable was a publican, and the head gaoler sold rum and brandy opposite the prison gates.

3. State of the Colony.—Under these circumstances, drunkenness became fearfully prevalent; the freed convicts gave themselves up to unrestrained riot, and, when intoxicated, committed the most brutal atrocities; the soldiers also sank into the wildest dissipation; and many of the officers themselves led lives of open and shameless debauchery. This was the community Governor King had to rule. He made an effort to effect some change, but failed; and we can hardly wonder at the feeling of intense disgust which he entertained and freely expressed.

4. Mutiny of Convicts.—Most of the convicts, on their arrival in the colony, were “assigned”—that is, sent to work as shepherds or farm-labourers for the free settlers in the country; but prisoners of the worst class were chained in gangs and employed on the roads, or on the Government farms. One of these gangs, consisting of three or four hundred convicts, was stationed at Castlehill, a few miles north of Parramatta.