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Rh forces another class of exemption; the residents of the far "Outback" cannot be economically mobilized for training, and for the present are left out of the scheme. A Staff College in the Federal Territory is provided for the training of officers, and its organization is on severely practical lines. Cadets are accepted after examination. The whole cost of their college training is borne by the army estimates, and parents are forbidden to supplement the messing allowance by private pocket-money. Even railway fares to and from the college when cadets go on holiday leave are paid by the Government, as are also all costs of uniform and equipment. A severe but not unwholesome discipline is exacted; the drinking of alcoholic liquors and cigarette smoking are both forbidden in the college. The normal course lasts four years and is followed by a tour of duty in England or in India, after which graduates are available for staff appointments in Australia and New Zealand (the latter dominion shares in the carrying on of the college). During the World War the course at the Staff College was somewhat modified and 158 cadets were specially graduated for service at the front. The college provides for 150 cadets.

As, after training, the citizen soldier passes into a reserve, the potential military resources of the Commonwealth in the future are only to be calculated by the total number of males of "military age," minus those who had been exempted from training. On the basis of the present population there would be 366,000 males between the ages of 18 and 26; 330,000 between 26 and 35, and a further 614,000 between 35 and 60. Exemptions, at a broad guess, might be 25%. The organization of the establishment is at present 90 squadrons of light horse, 52 batteries of field artillery, 93 battalions of infantry, and a due proportion of engineers and army service corps.

In regard to naval defence there was strong criticism of the subsidy policy at the very outset of the Federation. But that policy was warmly supported by the British Admiralty and the Imperial Defence Committee; and the impression was given that the only alternative to an Australian cash subsidy towards the British navy was no coöperation at all in the naval defence of the Empire. Indeed the early advocates of an Australian navy were met in their own country with charges of disloyalty to the Mother Country. But Australian public opinion steadily hardened on the subject. The British Admiralty was ultimately converted, in part at least. On Dec. 19 1907 Mr. Deakin, as Prime Minister of Australia, outlined a scheme by which Australia would devote the amount of the naval subsidy, then £200,000 a year, to the building of an Australian fleet, under the control of the Commonwealth Government but trained to coöperate with the British navy.

The general anxiety as to the European situation in 1909 made the subject of Imperial defence of the first importance. Australia was represented at an Imperial Defence Conference in 1909, which showed a remarkable change of opinion on the subject of "local navies" on the part of the British Admiralty. They brought down to the Conference, as a substitute for an Australian subsidy to the British navy, a proposal for the building of an independent Australian fleet unit with the help of a British Treasury subsidy of £250,000. The Australian Government adopted the scheme in its entirety, except that it refused to accept the subsidy and decided to put the whole cost on the Australian taxpayer. Under this scheme Australia was to provide a fleet unit with a "Dreadnought" cruiser as its chief vessel.

In March 1911, at the request of the Australian Government, and at the close of a visit to Australia, Admiral Sir Reginald Henderson reported on the naval needs of the Commonwealth. His report was accepted, and it represents the present aim of Australian naval defence. In 1919 Admiral of the Fleet Lord Jellicoe visited Australia to advise the Commonwealth as to their naval programme in the light of the lessons of the war. In 1921 a special conference was held at Singapore to consider the Pacific naval position. It was announced by the British Admiralty early in 1921 that British naval policy (especially in regard to a battleship programme) would not be finally decided upon until after discussion with the dominions. Thus the wheel had come full circle from the British Admiralty attitude of 1907, which discountenanced any dominion naval action except a financial support for the British navy, to the decision that the British naval programme must not be finally settled without consulting the dominions.

The Australian naval organization has a naval college at Jervis Bay for the education of naval officers. The system follows that of Great Britain exactly except that all expenses of the cadets are met by the Commonwealth Government and parents pay no fees. There is also a training-ship at Sydney for the training of other ranks. The Australian navy is in charge, for the Empire, of the S. Pacific naval station. It has a fleet of 30 surface warships headed by the battle cruiser "Australia," six submarines, and various auxiliaries.

Australia's defence expenditure (naval and military) in 1905 was less than £1,000,000. In 1918–9 it was £87,270,000, and the estimates for 1919–20 were for £81,029,000.

The visit of the Prince of Wales to Australia in 1920 was marked by the most cordial demonstrations of loyalty and personal affection. An effort was made by the Irish party and an extremist Labour section to strike a discordant note. It failed completely. The Australian soldiers in France had been won by the Prince's qualities of courage, dutifulness and charm to what may be called without exaggeration a devoted admiration. They gave the lead to Australian public sentiment in the welcome of the royal visitor.

The area of New South Wales is computed at 309,472 square miles. The state has progressed rapidly since federation. The pop in 1900 was 1,364,590 and in 1919 2,002,631. In 1908 New South Wales reestablished a system of state-aided immigration. The city of Sydney has shown a remarkable growth since federation, and in 1912 a "Million Club" was formed to foster the growth of the city to 1,000,000 inhabitants. Pop. (1921) 828,700.

Politically, New South Wales was the original headquarters of the Australian Labour party; its state Parliament is usually controlled by the Labour party and the Premier in 1921 was the Hon. John Storey, leader of the Labour party. At the time of the Union, New South Wales was the centre of anti-federation, and its hesitancy to throw in its lot with the other states caused some delay in realizing the Union. A certain anti-federal spirit persists, and is shown in the fact that this state stands out from the Federal control of its borrowings. No state has benefited more from the Union, the effect of which tends to group most of the great industries of the Commonwealth around the New South Wales coal-fields. A recent development of great importance was the foundation of steel manufacture at Newcastle.

Besides Sydney (the greatest port of Australia and the chief entrepôt for the American, the Asiatic and the Pacific trade), New South Wales has notable cities in Newcastle—the centre of the coal-mining industry—Broken Hill, a great silver, zinc and lead-mining town in the far W. of the state; Tamworth, Bathurst, Goulburn, Wagga and Albury, pastoral and agricultural centres.

The governor in 1921 was Sir Walter Davidson.

Since Federation the pop. increased from 1,197,206 to 1,495,938 (1919). State-aided immigration was reestablished in 1908 and a vigorous policy of closer settlement has been adopted. Before the Union Victoria had established by a high protective tariff a lead in the manufacturing industries. That lead has now passed to New South Wales. Victoria is, however, developing with energy her agricultural interests, and has lately made good progress with intensive fruit-growing on the banks of the river Murray. The area under all crops in 1919 was 3,942,000 acres. The state has been more stable in its politics than most of its neighbours and is the centre of Australian Conservatism. As temporary seat of the Commonwealth Government, Melbourne (pop. 743,000), the capital of Victoria, is also the political capital of Australia, and the housing of the chief Federal departments there has given some impetus to the city's growth. Since the inauguration of the Federation it has been improved greatly in appearance by a scheme of tree decoration applied to the river banks and the chief streets.

The governor in 1921 was the Earl of Stradbroke.

S. Australia has an area of 380,070 sq.m. and a pop., in 1919, of 468,194, having been relieved of the care of the Northern Territory. The state is facing the development of its "dry-belt," where wheat-growing has been found to be possible with a very low average rainfall. In 1901 the area under wheat was 1,743,452, in 1919 2,186,349 acres.

In politics South Australia has always been very progressive in spirit. It was the first state to enfranchise women, and most of the "social reform" legislation of Australia originated here.

The governor in 1921 was Sir Archibald William Weigall.

The pop. was 331,660 in 1919. The state has had for many years a system of state-aided immigration. The backwardness in development of this, the largest of the states, is being met by a vigorous land settlement policy. In 1920 the state had 1,605,000 ac. under crop, mostly wheat. The gold yield is dwindling. In 1918 it was 876,512 oz. compared with 1,595,270 oz. in 1909. But W. Australia is still by far the largest producer of gold in Australia.

The governor in 1921 was Sir Francis Newdigate Newdegate.

The pop. was 725,220 in 1919; the state has progressed greatly since federation. Alone among the Australian states it develops its railways from several maritime centres instead of from the one capital city. The sugar industry is a great source of Queensland wealth, and some anxiety was formerly felt as to whether the "white labour" policy of the Commonwealth would not ruin this industry. That anxiety no longer exists.

Politically the state is one of the strongholds of the Labour party, and during 1920 its Labour Government was strongly criticized in Great Britain for passing an Act which was regarded as repudiating the conditions under which British capital had been advanced for pastoral development.

The governor in 1921 was Sir Matthew Nathan.