the United States, Britain experienced overcrowding of its prisons and sought to ease the problems by transportation of its prisoners. In 1787 the First Fleet of 11 ships and about 1350 people under the command of Captain Arthur Phillip sailed for Australia. On 26 January 1788 a landing was made at Sydney Cove. The new colony was formally proclaimed as the Colony of New South Wales on 7 February. Other transport fleets bringing further convicts as well as free settlers to the colony followed. As a result of agitation by the free settlers in Sydney, transportation of convicts to Sydney ended in 1840. It continued to the colonies of Van Diemen's Land (where settlement began in 1803) and Moreton Bay (founded 1824, and later renamed Queensland) for some years longer. The small settlement of Perth, founded in 1829 on the Swan River in Western Australia by free settlers, failed to prosper and asked for convicts. In contrast, South Australia, with its capital Adelaide founded in 1836, and Victoria, with its capital Melbourne founded in 1839, was settled only by free settlers. South Australia not only received British migrants, but also a significant influx of Prussian farmers and tradesmen, initially seeking freedom from religious persecution. By the end of the penal transportation in 1868, approximately 165,000 people had entered Australia as convicts. From about 1815 Sydney began to grow rapidly as free settlers arrived from Britain and Ireland and new lands were opened up for farming. Despite the long and arduous sea voyage, settlers were attracted by the prospect of making a new life on virtually free land. Many settlers occupied land without authority; they were known as squatters and became the basis of a powerful landowning class. Gold rushes The discovery of gold, beginning in 1851 first near Bathurst in New South Wales and then in the newly formed colony of Victoria, transformed Australia economically, politically and demographically. The gold rushes occurred hard on the heels of a major worldwide economic depression. As a result, about two per cent of the population of the British Isles emigrated to New South Wales and Victoria during the 1850s. There were also a significant number of continental Europeans, North Americans and Chinese. In 1851 the Australian population was 437,655, of which 77,345, or just under 18%, were Victorians. A decade later the Australian population had grown to 1,151,947 and the Victorian population had