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The value of South Australia's exports nearly halved.
Drought and poor harvests from 1884 compounded the problems, with some families leaving for Western Australia.
Wakefield had read accounts of Australian settlement while in prison in London for attempting to abduct an heiress, As it was believed that in a colony of free settlers there would be little crime, no provision was made for a gaol in Colonel Light's 1837 plan.
However, by mid-1837 the South Australian Register was warning of escaped convicts from New South Wales and tenders for a temporary gaol were sought.
Adelaide stretches 20 km (12 mi) from the coast to the foothills, and 94 to 104 km (58 to 65 mi) from Gawler at its northern extent to Sellicks Beach in the south.
Adelaide was established as a planned colony of free immigrants, promising civil liberties and freedom from religious persecution, based upon the ideas of Edward Gibbon Wakefield.Governor Gawler took over from Hindmarsh in late 1838 and, despite being under orders from the Select Committee on South Australia in Britain not to undertake any public works, promptly oversaw construction of a governor's house, the Adelaide Gaol, police barracks, a hospital, a customs house and a wharf at Port Adelaide.Gawler was recalled and replaced by Governor Grey in 1841.Following a burglary, a murder, and two attempted murders in Adelaide during March 1838, Governor Hindmarsh created the South Australian Police Force (now named South Australia Police) in April 1838 under 21-year-old Henry Inman.The first governor of South Australia, John Hindmarsh, clashed frequently with others, in particular the Resident Commissioner, James Hurtle Fisher.