(the work of Flinders and Bass will form the subject of the next chapter);
settlements were made at Van Diemen's Land in place of Port Phillip, where
an attempt to colonize was abandoned, to be successfully carried out later
on; the important town of Newcastle was founded; the whale fisheries made
a fair start; and several expeditions were conducted into the interior,
always to be stopped by the Blue Mountains barrier. Above all, MacArthur,
in spite of every discouragement, made a success of his wool-growing,
resigned his commission, and returned to the colony, the first of the
great pastoralists. King, to his credit, forgot his differences with
MacArthur, and lent a willing hand to the colonist. The first newspaper,
the _Sydney Gazette_, was published just before King left the colony, and
free settlers began to come out in numbers.

The French expedition under Baudin called at Port Jackson to refresh, and
certain matters in connection with their visit are worth telling. Two
unfortunate incidents occurred: one an accusation against the French
officers of selling on shore certain liquor King had given them permission
to purchase from a merchantman for the use of their ships' companies;
another incident was the manner of hoisting the English ensign on board
one of the French ships, which was "dressed" for a holiday. Baudin
explained these matters easily enough. The flag was wrongly hoisted by
accident, and the accusation for selling liquor was unfounded, and certain
officers of the New South Wales Corps who made the statements did not come
out of the affair very creditably.

[Illustration: SIR JOSEPH BANKS. From a picture by Thomas Phillips, R.A.,
in the National Portrait Gallery. _To face p._ 158.]

But the most noteworthy incident is explained in this extract from a
letter dated Sydney, May 9th, 1803, from King to Sir Joseph Banks:--