some impression of the wealth and resources of the British Empire and the enormous expansion of production that has taken place within the past fifteen years. The British Empire now produces 27 per cent. of the world's output of coal, 18 per cent. of the world's output of pig iron, 59 per cent. of the world's output of gold, 24 per cent. of the world's output of silver, 64 per cent. of the world's output of tin, 39 per cent. of the world's output of wool, and 18 per cent. of the world's wheat crop. Nor must it be forgotten that the British Empire owns 19,012,000 tons of mercantile shipping, or practically one-half of the shipping of the world. To sum up, it may be said that the national wealth and national income of the different parts of the British Empire and the amounts they are at present expending on defence are as set out hereunder : • Exclusive of cost of battle-cruiser presented to home Government. The British Empire is in every respect the most important and wealthy Confederation in the world. It has an area of 11,306,000 square miles and a population of 416,000,000. Its foreign or external trade during 1910 was valued at 1,776,888,000l., practically the whole of which was sea-borne. The national wealth of of the Empire is approximately 25,000,000,0001., its national income 3,332,000,000l., and its expenditure on defence 102,000,000l. per annum. In point of wealth the British Empire greatly exceeds that of any other Confederation, its nearest rival being the United exceed States with an estimated national wealth of 21,000,000,000l., while the national wealth of France cannot 12,000,000,000l. The comparative smallness of the expenditure of the British Empire on defence will be appreciated when it is realised that it represents only 31. in respect of every 1001. of annual income. As a matter of fact Germany and France, whose combined national wealth is largely exceeded by that of the British Empire, now spend about 110,000,000l. per annum on defence, and their overseas possessions are inconsiderable in relation to those of the British Empire. There cannot be the slightest doubt that the Empire could bear with the greatest ease an additional expenditure on naval defence of 20,000,0001. per annum. All the great self-governing communities had a surplus last year; in the case of Great Britain it was 6,545,000l., Canada 7,800,000l., and Australia 5,196,000l. It will be observed that the burden of Imperial Defence does not fall upon all parts of the Empire with an equal incidence. The United Kingdom possesses 64 per cent. of the wealth of the Empire, but it contributes 70 per cent. of the expenditure. India contains 14.4 per cent. of the wealth, but she contributes nearly 20 per cent. of the outlay. Canada has 8 per cent. of the wealth, but her contribution is little more than 2 per cent. of the total. Australia has about 5 per cent. of the wealth, and she now expends about 5 per cent. of the total outlay on defence. But when comparison is made on the basis of the naval expenditure alone, it will be found that practically the whole of the burden of the naval defence of the Empire is borne by Great Britain. Out of a total outlay of 48,000,000l. Great Britain contributes no less than 45,000,000l., or 94 per cent.1 So long as the present separatist naval policy is maintained, and the foreign policy of the British Empire is directed by the Cabinet of the British Parliament alone, it is difficult to seehow the people of the United Kingdom can reasonably expect the self-governing Dominions and the different Possessions and Protectorates to make an adequate contribution to the cost of the naval defence of the Empire, or to co-ordinate and place under a central administration their naval and military forces. It is obvious to the student of Imperial affairs that the time is ripe for such a modification of the existing relations between the 1 It may perhaps be claimed, as stated elsewhere, that the self-governing Dominions have undertaken other Imperial services than those which they discharge by the direct expenditure on their naval and military forces; but this contention must not be pressed too far. Moreover, if such matters are to be taken into account, it may be pointed out that the Mother Country is not only fulfilling a great Imperial service in supplying the Overseas Dominions with population as well as capital, but she is lending that capital at an average rate of at least one-half of one per cent. less than that which she could obtain from foreign countries. This means a concession of at least 10,000,000l. per annum on the part of the Mother Country to the rest of the Empire. Mother Country and the rest of the Empire as would provide for the admission of the peoples of the Overseas Dominions and Possessions to a common Imperial citizenship, and at the same time enable them to enjoy an adequate measure of representation in Imperial councils. Speaking in the House of Commons on the 22nd of July last, the Prime Minister made the significant declaration that Side by side with this growing participation in the active purposes of the Empire on the part of the Dominions there rests with us undoubtedly the duty of making such response as we can to their obviously reasonable appeal that they should be heard in the determination of the policy of the Empire.' Lord Esher has impressed upon our minds the fact that for purposes of Imperial defence the Empire is not a federation, but an alliance between greater and lesser States upon terms not so clearly defined as those which subsist between some of the States of Europe. No one, he adds, who has read the reports of what has occurred at the Imperial Conference, and has watched the attitude of the Dominion Parliaments, can be under any illusion about the nature of the ties between the Mother Country and the great self-governing communities. These ties are in the main sentimental, and although quite recently there are indications that the Dominions are not unwilling to take part in defending the Empire against attack, any attempt to formulate strategic plans based on common action would be premature, and might not impossibly prove to be disastrous. The Dominions, he continues, are very much inclined to hold language which, if it means anything, implies that they reserve to themselves the power to declare ad hoc, on the outbreak of war, whether they will take their full share of responsibility as belligerents. Public opinion in Canada is, we know, deeply divided on the naval problem. The party in power hold the view that it is impossible to have a separatist naval policy and a common Imperial citizenship. The Liberal party, on the other hand, is haunted by the fear that the Dominion may some day be drawn into the vortex of European militarism. We have, however, the highest authority for believing that the national spirit of Canada is as pronounced as that which prevails among the people of the United States, and from time to time Canada has given unmistakable expression of her determination to maintain the Imperial connexion. As Earl Grey has eloquently told us, the spirit of Canada is indicated by the growing belief of all Canadians in the greatness of the future that awaits them, and by their consciousness that it is within their power, as well as their determination, to fulfil the inspiring rôle of their splendid destiny. The day is approaching, the late Governor-General of Canada believes, when Canadians will be ready as self-governing subjects of the Crown to assume the full status of partners in the responsibilities and obligations, as well as the privileges, of Empire. Then as to Australia, the Commonwealth has adopted the policy of a separate navy under the direct control of the Government of the Commonwealth, but there is good reason to believe that public opinion in Australia is prepared to view favourably any scheme of co-operation with the Imperial authorities which would place the Australian naval and military forces under one control, provided the controlling body was representative of the self-governing Dominions as well as the Mother Country. The example of New Zealand is most encouraging. When the Admiralty recently suggested that it was desirable that the battle-cruiser New Zealand, instead of serving in China should be appointed to the Home Flect in the North Sea, where alone she would be matched against vessels of her own size and quality, the Government of New Zealand responded in a spirit of splendid and enlightened patriotism, and said they considered that the battle-cruiser should be stationed where the Home Government considered her of the most value. The position of India claims the careful and sympathetic consideration of the people of the United Kingdom and the selfgoverning Dominions. It is impossible to ignore the significance of the welcome that was accorded by men of rank and wealth to their Majesties on their recent visit to India. The rejoicings which accompanied the Imperial visit were not only an expression of appreciation of the benefits of Imperial citizenship, but at the same time a manifestation of the desire of the people of India to share in them more fully. India occupies a commanding position in the Empire, but she has never been permitted to take the place which she can fairly claim. The time is rapidly approaching when it will be difficult, if not dangerous, to refuse to admit India to that fuller and more equal recognition in the councils of the Empire to which she is entitled. The problem of co-ordinating the United Kingdom, the selfgoverning Dominions, and the heterogeneous communities of coloured races under the British Crown into an Imperial Federal Council for Defence is one of peculiar difficulty and delicacy. On the one hand it may be doubted whether public opinion in Great Britain is fully prepared to recognise the fact that the people of the United Kingdom can no longer fairly claim to retain the exclusive control of the direction of the foreign policy of the Empire. On the other hand the Overseas Dominions are somewhat doubtful as to a satisfactory solution of the problem of combining the unimpaired enjoyment of their existing autonomous rights in their own local affairs with the duty of sharing in the burdens, and the privilege of taking part in the deliberation of matters common to the whole. Then there is the extremely debatable question as to the measure of representation to be accorded to the peoples of India, West, South, and East Africa, and the West and East Indies, and also the problem of the position to be assigned to Egypt. The transformation of the Committee of Imperial Defence into a representative and executive Imperial Federal Council of Defence would appear to the writer to afford the best prospect of a satisfactory solution of the problem. This Committee is an advisory, and not an executive body. Its primary business is to study and determine what is the best provision that can from time to time be made for the naval and military requirements of the Empire as a whole. In theory it sits purely to advise the Prime Minister. He nominates its members and can add to or diminish the number at his own will and in accordance with the particular problems which for the time being demand investigation. The Committee consists of six Cabinet Ministers in addition to the Prime Minister-namely the four Secretaries of State (exclusive of the Home Secretary), the First Lord of the Admiralty, and the Chancellor of the Exchequer. It includes also the First Sea Lord, the Director of Naval Intelligence, and Admiral of the Fleet Sir A. K. Wilson, as representing the Navy; and, as representing the Army, the Inspector-General of the Home Forces, the Chief of the Imperial Staff, the Director of Military Operations, the Inspector-General of the Oversea Forces, and Field Marshal Lord Kitchener. In addition to these official members the Committee has the services and co-operation of Field Marshal Sir William Nicholson, of Lord Esher, Admiral of the Fleet Lord Fisher, and Viscount Haldane. The Committee is still in process of evolution. It had its origin, Lord Esher tells us, many years ago in the mind of Lord Salisbury, who drew together representatives of the Admiralty and the War Office as a small Committee under the presidency of the late Duke of Devonshire for the purpose of studying large maps and strategical questions. Mr. Balfour subsequently transformed the Committee into a permanent advisory body on defence questions, and he took the very important step of instituting a permanent secretariat. Further momentous changes were made by Sir H. Campbell-Bannerman and Mr. Asquith. The discussions of the Committee are now preceded by scientific inquiry, and Mr. Asquith recently established a standing Sub-Committee to be presided over alternately by the First Lord of the Admiralty and the Secretary of State for War, and composed of representatives of the War Office, the Foreign Office, the Board of Trade, the Customs and other great departments, for the purpose of coordinating in war the naval, military, and civil forces of the State. Lord Esher, who has been permitted to give some idea of the subjects with which the Committee deals beyond the scope of the |