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PROBLEMS OF EMPIRE. reached the limit beyond which they cannot be increased with advantage to the revenue. The late Chancellor of the Exchequer has told us that new sources of income must be found. Expenditure on Imperial purposes is growing rapidly; while for the solution of social problems fresh demands are being constantly made on the public purse. While Colonies are in their infancy their whole resources are needed for their internal development, and it is the duty of the mother country to charge herself with their defence. But our Colonies have now become important self-governing communities, and it appears only reasonable that the Colonial taxpayer should stand shoulder to shoulder with the taxpayer of the mother country, and assume his share of the responsibility for the common defence of the Empire. The more I have studied this question—and from the time when I first discussed it with Mr. Hofmeyr at the Cape in 1887, I think I may claim, without giving offence, that few people have had greater opportunities for studying it in all parts of the Empire than myself the more have I become convinced that the only possible method of securing an adequate contribution to the defence of the Empire from its Colonies and dependencies is through some form of commercial federation.

2. Closely connected with the defence of the Empire is the question of our food supply in time of war, to inquire into which a Royal Commission has recently been appointed. In 1901 our total imports of wheat, wheat-meal, and flour, were equivalent to 101,000,000 cwt. of wheat, while we grew 28,500,000 cwt. in the United Kingdom. Of the quantity imported, the United States sent us no less than 66,800,000 cwt., 136