This series explains the many important aspects of the colonial Economy of N.S.W. between 1788 and 1835. The traditional thinking is that the pastoral economy led the growth of the colony into the second half of the 19th century, however the first half of the 1800s has been re-examined and it is the case that a secondary industry built around manufacturing led the growth, particularly in the last years of the Macquarie Administration. This development of a secondary industry followed the rise and strength of the numerous government business enterprises. In the need to cut back on convicts in government service, many small cottage ventures were cut off from the main Lumber Yard operations to be privatized and form the first of the manufacturing industries that would support the colonial economy well into the future.