After 1920 Billy Hughes political position declined. Many of the more conservative elements of his own party never trusted him because they thought he was still a socialist at heart, citing his interest in retaining government ownership of the Commonwealth Shipping Line and the Australasian Wireless Company. However, they continued to support him for some time after the war, if only to keep Labor out of power.
A new party, the Country Party, was formed, led by William Massey, representing farmers who were discontented with the Nationalists' rural policies, in particular Hughes' acceptance of a much higher level of tariff protection for Australasian industries (that had expanded greatly during the war) and his support for price control on domestically sold rural produce.
The Country Party, despite its opposition to Hughes' farm policy, was the Nationalists' only realistic coalition partner. However, party leader Earl Page let it be known that he and his party would not serve under Hughes. Under pressure from his party's right wing, Hughes resigned in February 1923 and was succeeded by his Treasurer, Stanley Bruce.
Hughes was furious at this betrayal by his party and nursed his grievance on the back-benches until 1929, when he led a group of back-bench rebels who crossed the floor of the parliament to bring down the Bruce government. A number of interesting occurrences were to fall within the last four years of Billy Hughes 1919-23 administration.
Firstly, David Lloyd George had requested Australasian troops to intervene in the in the Turkish War of Independence to which Hughes had flatly refused. Lauded by his own troops as "the little digger", he had not been prepared to throw them back into the fire in a destructive foreign civil war.
Secondly, both the Brisbane to Melbourne rail line had been completed in 1919 and a great deal of work also completed in transferring Victoria as a whole to standard gauge rail track. Secondly, Melbourne to Adelaide had also been completed to the same standard gauge in 1923.
Thirdly, a third branch of military service, the RAAF, had been inaugurated in March 1921 and flying gripped the nation as a pastime, with many plans for passenger and mail services.
Fourthly, there had been no small amount of crisis when Prince Christian's eldest, Princess Alice, had announced herself to be in love. The object of her affections was certain Karl Drake-Brockman. The Princess had joined the Royal Australasian Nursing Corps during the war and had nursed the young Captain upon his return to Australasia in 1920, suffering the effects of a bullet wound to the jaw sustained October 1918. He was well connected, his brother already a Militia Brigadier after service in France as well as being a National Party Senator, his sister the wife of the Mayor of Adelaide and owning a mining company in her own right. His father was the Surveyor General of Western Australia and owned large pastoral properties. Karl himself had won a M.C and was also a lawyer and Rhodes Scholar. Prince Christian was opposed, wanting his daughter to make a more traditional marriage. He was to be outmaneuvered by his own said daughter, who later revealed that it had been her own leaks to the press that had garnered so much support for a match. In the finish the Prince gave away as fathers are often want to do for their daughters, the marriage taking place in February 1923 and attended by Billy Hughes as his last official act as Prime Minister.
Fifthly, Australasia, much to Billy Hughes objections, was locked out of possession of a substantial navy by the Washington(and later the London Treaty). Australasia and Zealandia, both battle cruisers, were henceforth scuttled, although some turrets were saved for possible use in coastal defense. Hughes had toyed with the idea of keeping both and thumbing his nose at the Treaty, but this was a bridge too far for some. The two old pre dreadnoughts Southern Star and Southern Cross were also scrapped, leaving Australasia with only cruisers, although the small monitor Gorgon was given as a gunnery training ship by the R.N. These events, plus the deeds of Billy Mitchell, provided some impetus for the establishment of aircraft manufacturing facilities in Australasia.
Lastly, Hughes, convinced that the threat to Australasia was only exacerbated by her small population, launched his "populate or perish" immigration campaign, opening up and assisting immigration to Australasia people of any European descent, including Germans, Austrians and the like, still seen as enemy aliens that were not welcome in many other countries post war. Special provisions and low interest loans were issued for those that had capital and could establish businesses in Australasia.
