The authorities realized this, of course. They also realized that with each passing day that Kelly remained free, their reputation, and their ability to control a restive underclass through intimidation waned a little more.
There is, in fact, ample evidence that by early 1880 the government in Melbourne was becoming increasingly dissatisfied with Hare's campaign to bring Kelly to the dock. There was, according to Ned Online, even talk about relieving Hare of command. In April of that year, the government set a deadline, declaring that it would withdraw its offer of a reward on the Kelly gang in July of that year.
The intention was to create a sense of urgency among the populace.
It failed.
For the most part, the reward offered for Kelly and his gang had proven to be little incentive for the public to turn on them. On the contrary, there was mounting evidence that support for the Kellys had increased in the wake of the spectacular Euroa and Jerilderie heists. It wasn't just confined to the Irish, either. There were reports at the time that the Kelly gang was growing support among other immigrant groups as well, including the Chinese with whom Byrne had long had dealings.
There may however have been at least one person who was willing to give up information on Ned Kelly and his band. His name was Aaron Sheritt, a childhood friend of Byrne's who had, on several occasions in the past, ridden with Ned Kelly. He was reported to have been a member of the livestock rustling operation run by Kelly's stepfather years earlier.
It still remains a subject of some controversy, but some historians believe that Sheritt was also a turncoat. Ned Kelly certainly believed he was. Though Kelly had long tolerated Byrne's friendship with Sheritt — he even allowed Byrne to invite Sheritt to join the gang at one point — he eventually became convinced that Sheritt was a serious threat. There was, only one way to deal with a traitor, as far as the Kelly gang was concerned. The only question was how and when they would do it.