In 1841, Mr. Osborne was obliged by the pressure of private business to withdraw from the Secretaryship, in which he was succeeded by Mr. J. Stephen, the reverse of an improvement. Great exertions were made to push on with the contemplated building, and tenders were at length accepted, in February, 1842, for its erection for £1920, the contractors-Messrs. Donovan and Crosbie. It was a hazardous venture, but the available funds were £1472. On the 6th June, 1842, an important meeting was held at the Royal Hotel, Collins Street, presided over by Mr. James Simpson. A liability of £1921 had been incurred for the building, and the assets from all sources were estimated to yield £1569 3s. 3d. This included about £600 unpaid donations and subscriptions. Loans had been offered by the Freemasons and the Melbourne Debating Society, and it was the Committee's opinion that it would be more advisable to borrow £1250 on mortgage in the ordinary way of business. The building was mortgaged for the sum required at 12½ per cent interest, and pecuniary obligations were incurred which it was afterwards at times difficult to provide for. The edifice, early in 1843, yvas occupied by the members. It was a substantial two-story brick building, some feet from and above the street level. It was reached by several steps, and during the winter season the footway and street approaches were in a terrible state of mud and puddle. Yet in those primitive times the progress of the erection yvas regarded with much interest, and not only the people, but the newspapers, actually felt a pride in it as one of the coming constructive wonders of the Antipodes. One of the latter thus gushingly referred to it:— "The Hall of Arts is nearly complete, and will be ready for occupation in the course of a few days; the size, arrangements, and architectural proportions of the building will make it, when finished, the noblest edifice in the Province." On the ground-floor were the Library and Reading-room, and for years the Town Clerk had his official quarters in another portion of the building. The meeting place for the Town Council was upstairs in the large room. This larger apartment or "hall," as it used to be grandiloquently styled, was one of the most historic places in Early Melbourne, for here were held some of the most important gatherings in Port Phillip—social, charitable, and political.
A small grant was ultimately obtained from the Government, and Mr. George A. Gilbert was, in June, 1844, appointed Hon. Secretary, vice Stephen, who was never suited by industry or habits for the post. Mr. Gilbert was professionally a drawing-master, possessed considerable talent of a general kind, was fluent of tongue and facile of pen, with a plausible, gentlemanly manner, which made him a favourite. In the middle of this year the Library contained 600 volumes, and the Museum began to exhibit faint signs of life. The lectures were renewed with much vigour, and in October a welcome present was received in the form of a twenty-guinea cheque from Mr. Benjamin Boyd, a Sydney merchant, who made a political swoop upon the district, and picked up one of the locally little valued prizes—a seat in the Legislative Council of New South Wales. In November intimation was received that the Governor would sanction a grant of £150 a year towards the undertaking, and in March, 1845, the Management got the first taste of the so-much-wished-for, but long-forbidden State-aid. Mr. William Roycroft was appointed Assistant Secretary at a remuneration of £50 per annum and quarters. In the report submitted to the annual meeting in January, 1846, the total debt due on the building was £1400, the income for 1845 slightly exceeded £500, and the number of members 129. A great effort was made "to raise the wind," and in a few months £416 accrued from donations and subscriptions. In 1846 the Members' Roll went up to 204, and in June, 1847, to 220.
In September, 1847, Mr. Redmond Barry again appeared at the lecturer's desk, and read a masterly paper on "Sculpture, Painting, and Architecture." Mr. Barry delivered another lecture (24th October) on "Music and Poetry." The subject was handled in an eloquent and artistically able style, was deemed a masterpiece, and had a good circulation as a pamphlet, in which form it was (as well as in some of the newspapers) published. At the annual meeting in February, 1850, the receipts for the past year were £586 17s. 4d, and the expenditure £494 10s. 2d, whilst the income ofthe current year was estimated at £766 17s. 2d. This year was distinguished by the appearance of some new faces as lecturers, the first being the Rev. W. Trollope, M.A., an Episcopalian Minister of high Academic attainments, and a writer of much power, but with too great a tendency to personal and sectarian acrimony. He delivered a course of lectures on "Mechanics," and though marked by much ability, his audiences were more select than numerous. On the 27th February Mr. David Blair, so well and deservedly known in after years as a public speaker and writer, made his début before a Melbourne public, with a lecture on "Poetry and its Influences." He was
