Economics - Theses
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ItemRailways and the development of Victoria, 1860-1900( 1973)This thesis attempts to assess the role of the railways in the economic development of Victoria in the nineteenth century. Although both forward and backward linkages are examined the main emphasis is on the forward linkage effects of the provision of railway services and reductions in freight rates. Considerable attention is devoted to the criteria used in formulating railway tariff policies. Throughout the nineteenth century railway managers were expected to operate the railways without incurring deficits but at the same time there were constant pressures, from both within and outside parliament, for railways to play a developmental role regardless of revenue considerations. There was no satisfactory resolution of the conflict between the rating criteria, and consequently railway rate adjustments tended to be ad hoc political responses to changing economic and social circumstances. In Victoria the railways were built and operated by the state and in a very real way they served as the instrument for the implementation of the social philosophy of the community. This was particularly so in regard to the development of agriculture and the railways were an essential complement to the land legislation which aimed at settling a considerable agricultural population in the countryside. Not only did the railways provide the essential transport infrastructure for an export orientated economy, but the extension of lines and downward adjustments of freight rates helped agriculture to remain viable during a long period of falling prices and declining yields. The railways exercised a considerable influence over the geographical pattern of economic activity in Victoria. In particular the differential rating system stimulated the growth of processing industries and commercial activity in Melbourne to the detriment of the inland towns. Preferential rates were used to attract the Riverina trade to Melbourne and in some cases were consciously used to favour metropolitan over provincial manufacturers. By providing an efficient and cheap transport system which served nearly every part of the colony the Victorian railways played an indispensible role in the economic development of Victoria in the nineteenth century. Railway investment and rating policies served the economic and social aspirations of the people then and provided the basis for further continuing development.