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Rh position of a Government factory is equivalent to that of an army with no Minister of War, no strategic scheme, and a capricious and fitful transport and supply. The larger institutions, such as dockyards, etc., represent a national interest of sufficient magnitude to escape some of the disadvantages of Government control, but here the circumstances are exceptional.

Manufacturing by private firms under contract, therefore, has considerable advantages; but even here the want of regularity in the placing out of orders is not conducive to high economy; a private firm, however, is able to work in one job with another, and execute a Government contract in lieu of other work for which there may happen to be a lull in the demand. This is especially the case in war time, when (as at the present moment) a large proportion of our engineering works and factories, having little demand for their regular products, are mainly occupied in turning out munitions of war. Whatever the state of preparedness may be before war is declared, it is almost certain that the needs of the country, whether for aeroplanes, guns, or other items of armament, will be increased many times during the period of hostilities. The employment of private enterprise under these conditions is clearly desirable, and may be looked upon as imperative.

Once admit the above, the propriety of widely utilising the ordinary manufacturing resources of the country during peace time follows as a corollary, for it is only by this means that these resources can be brought promptly into operation when the need arises. A firm which has once executed contracts for any given article is always in a better position than one to whom the work is new; this is true in any case, but is more especially so where the preparations for manufacture involve the duplication of gauges, tool outfits, etc.