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The government encouraged the search for gold to stimulate the economy and encourage Immigration. One of the main problems was that so many people left the Australian colonies to join the gold rush in California. The outward tide of manpower needed to be stemmed, and this could best be done by encouraging within Australia the very thing that was drawing people out ofAustralia at the time.

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The Australian government offered incentives to find gold in order to stem the tide of Australians leaving for the Californian goldrushes. Valuable manpower was being lost from Australia.

Therefore, despite early gold discoveries being suppressed, the New South Wales government decided to offer a substantial reward to the first person to find gold.

Only the first person needed a reward. Once the goldrush began, Australian would-be prospectors concentrated their efforts at finding their "fortune in gold" on Australian soil.

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12y ago
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Q: Why did the government encourage the search for gold in 1851?
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