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 Kingdom, the aggregate annual revenues of Greater Britain being greater than that of the Mother Country. Now 24.26 per cent. of the home public expenditure is devoted to the purpose of providing that naval security for the Empire essential to all its parts, while only .25 per cent. of the total aggregate public expenditure of the dominions beyond sea is appropriated to precautions for their Empire's maritime security. The percentage proportion which expenditure on the Navy bears to the value of imports and exports by sea of the United Kingdom and the outlying Empire respectively is as follows:—United Kingdom 3&middot;81 per cent. Dominions beyond sea &middot;07 per cent

The broad conclusion which forces itself to the front by the contemplation of facts and figures such as these is of a twofold character:

1. That our Empire has outgrown its organization.

2. That the view taken by Captain Mahan of the British situation is a true one, viz., that 'Imperial federation in action will manifest itself pre-eminently along ocean and naval lines. The meeting of the next Colonial Conference may finally determine the future of the Empire, for in truth and in fact we have, in matters concerning Imperial defence, arrived at the parting of the ways, and the decision which road is to be taken in order to find security cannot be much longer deferred.

This question of the Colonies and the navy as one demanding primary attention at the next Colonial Conference was pressed upon the attention of the Prime Minister by a most important deputation under the auspices of the Imperial Federation (Defence) Committee on December 10 last. In his reply Mr. Balfour struck