Sydney
Under the reign of Queen Victoria federation of the six colonies occurred on 1 January 1901. Sydney, with a population of 481,000, then became the state capital of New South Wales. The Great Depression of the 1930s had a severe effect on Sydney's economy, as it did with most cities throughout the industrial world. For much of the 1930s up to one in three breadwinners was unemployed. Construction of the Sydney Harbour Bridge served to alleviate some of the effects of the economic downturn by employing 1,400 men between 1924 and 1932. The population continued to boom despite the Depression, having reached 1 million in 1925.
History of Canberra
The district's transformation from a New South Wales rural area to a built-up national capital began during political debates over Federation in the late 19th century. Due to a temporary Gold Rush at the time, Melbourne was Australia's largest city and a potential place for the capital. However Sydney was Australia's oldest city, and so also had a justifiable claim to host the new nation's Federal polity. Western Australia, South Australia and Victoria, Melbourne's state of location —supported Melbourne. However, New South Wales (the largest colony) and its neighbouring northern state, Queensland, favoured Sydney. Perhaps one or another of the two colonial capitals might have eventually been acceptable to the smaller states, but the Sydney–Melbourne rivalry was such that neither city would ever agree to the other one becoming the capital.