History of Melbourne - Australia's Capital: 1901-1927

Australia's Capital: 1901-1927

Melbourne's status as Australia's largest city lasted long enough, however, for it to become the seat of government of the new Commonwealth of Australia when the six colonies federated in 1901. Parliament House in Spring St was lent to the Parliament of Australia, while Victoria's Parliament found temporary accommodation in the Royal Exhibition Building.

The city's growth stalled, and by 1905 Sydney had resumed its place as Australia's largest city.

Not until about 1910 did economic growth resume, and Melbourne's population reached 670,000 by 1914. But the boom years did not return, and the level of wages remained far lower than it had been in the 1880s. As a result urban poverty became a feature of city life, and the slum areas of the inner industrial suburbs spread.

The period 1890-1925, can summarily described as : Depression 1890-95, with a panic In 1893. and a slight revival in 1895; Revival 1896, growing into prosperity from 1897 -1900. Recession 1901. growing 1902, into depression in 1903. Revival 1904. growing 1905. into prosperity 1906-07. Recession and depression 1908, with a rapid revival and prosperity 1909-12. Mild recession 1913; revival, recession, and depression in 1914. Revival, came at the end of 1915, and war activity 1916-18, ending in prosperity 1919-20. Recession at the end of 1920, depression in 1921, slow revival 1922 to mild prosperity 1923. Mild recession followed in 1924, with a revival and prosperity in 1925.

Due to long delays in establishing permanent capital at Canberra, Melbourne remained Australia's capital until 1927. This had important long-term consequences. Melbourne became the centre of the Commonwealth Public Service, the Australian Defence Forces, the diplomatic corps (very small until World War II), and also to a large extent of the legal profession, all of which reinforced the supremacy of Melbourne University and exclusive schools such as Scotch College, Melbourne Grammar School and Xavier College.