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 stepped into the place when the emergency came, who has formed, organized, and presided over performances and transactions the like of which were never contemplated by any State in history. Indeed, so smoothly and unfailingly has this vast business, the like of which has not been previously witnessed, been carried through, that we have several times been compelled to remind the soldiers whom we serve, and I now think it right to remind the House, that, after all, we are at war.

We are at war with the second Naval Power in the world. When complaints are made that we have taken too many transports or armed too many auxiliary cruisers, or made use of too many colliers or supply ships, I must mention that fact. The statement that the Admiralty have on charter, approximately, about one-fifth of the British Mercantile Marine tonnage is correct. With that we discharge two duties, both of importance at the present time: first, the supply, fuelling, and replenishing with ammunition of the Fleets; second, the transport of reinforcements and supply for the Army in the Field, including the return of wounded. It must be remembered, in regard to the Fleet, that we have no dockyard or naval port at our backs, and that the bases we are using during the War have no facilities for coaling from the shore. We are not, like the Germans, living on a great naval port at Wilhelmshaven, on which £15,000,000 or £16,000,000 has been spent. Rosyth is not finished, and will not be available for some time. Everything, therefore, required to keep the Fleet in being—supplies, stores, and, above all, fuel—has to be not only carried, but kept afloat in ships.

What are called the "afloat reserves"—the great mobile reserves of fuel and stores maintained at the various bases used by the Fleet—are those which are fixed by the War Staff and approved by the Board of Admiralty after consultation with the Commander-in-Chief. When those amounts have been fixed, the Transport Department have no choice but to supply them. It is necessary that there should be sufficient colliers to enable all the Fleet units at a particular base to coal simultaneously with a maximum rapidity twice over within a short interval, and extensive naval movements at high speed may at any moment necessitate this being put to the test. After two such coalings there must still be sufficient coal available for unforeseen contingencies, including delays in bringing