[1] Then in 1851 his father died, leaving his business to his second wife and the older son, and James was urged by George Fife Angas to forge a new life in the new colony of South Australia.

But first he sailed to America, where he was hospitably received by his mother's sister, then after a few years reached Adelaide, arriving in 1852, just as half the male population of South Australia was trying its luck in the goldfields of the neighbouring colony of Victoria.

In 1853 his cousin Edwin Thomas Smith emigrated to South Australia aboard the California and with help from Holden began importing ironmongery.

A. Holden & Co., merchants and wholesale saddlers, selling imported and locally made (no doubt from his brother) saddles, whips and harnesses.

They later moved into a larger home in Magill, then a year later sold up both places for a Kensington Park property of 15 acres (6.1 ha), where in 1871 the original cottage was replaced with a seven roomed residence, with substantial additions in 1875.

A contract to supply carts and other equipment for the Overland Telegraph Line project's 165 horses and 210 bullocks was a major factor in the expansion of the business.

[6] Under the terms of the voluntary liquidation, Holden & Frost continued to operate from the premises at 100 Grenfell Street until they were once again solvent, and the building was purchased by Harris, Scarfe & Co.[7] in 1923.