People put forward a number of arguments for federation. A sense of nationhood was growing, with improvements in communication and better transport bringing people together, and with 70% of the population being Australian-born. Issues such as defense were causing concern, with growing German aggression close by in New Guinea, French presence in the New Hebrides, and American and Russian economic activities in the Pacific. Senior defense staff recognized that separate colonies could not defend their interests on there; a national approach was necessary.

Many people understood a federation would best serve economic interests. Tariffs between colonies and varying freight charges caused inefficient trade between colonies. New South Wales favored free trade while Victoria had a vested interest in protection. Such differences increased rivalry between colonies and federation could bring about a customs agreement which would serve all colonies.

Matters of common interest such as railway gauges and postal and telegraph services could also benefit from central government authority.

Immigration was another matter where cooperation was needed. Thousands of Chinese were coming

(2) How power has been divided between commonwealth and states

(3) The establishment of the high court as the final court of appeal.

2 People involved in the move towards Federation and its establishment

The Queen was to be represented by a governor-general who would approve or disapprove Bills so that they became law. There were two houses, the Senate or upper house which was established to look after the interests of the states. It was to have the same amount of members from each state. The House of Representatives or lower house was designed to represent the people and would on the basis of population. Each house had equal power. Except that money Bills came to the lower house first and could only be changed but not rejected by the senate. The governor-general had the power to dissolve parliament and call an election if a deadlock between the houses occurred.

Later Parkes stated that Australia must learn from the example of Canada and the USA regarding national unity.

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