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STEPS TO IMPERIAL FEDERATION.

£
Australia 200,000
New Zealand 40,000
Cape Colony 50,000
Natal 35,000
Newfoundland 3,000
£328,000

Even assuming that Canada agreed to contribute in the same proportion as Australia, the total contributions of the Colonies to the naval defence of the Empire would scarcely exceed 500,000l. Such a sum does not loom very large in estimates which amount to over 30,000,000l.

Colonial Naval Reserve.On the other hand, the Colonies might assist us, and assist us very materially, with men. For example, Reserve, in spite of large increases to the permanent force, the personnel of the Navy, including reserves, is quite insufficient for our country's requirements; and there are many indications that a further increase in the fleet will be necessary. In 1896, when visiting Canada and Australia, I made an especial study of the possibility of drawing on the Colonies for the Naval Reserve. In the fishing and seafaring population of Canada and Newfoundland and in the merchant seamen of Australia there was clearly an abundance of good material. In 1897 and in the following years I advocated by every means in my power that this material should be utilised. Two years ago a small experiment was made in this direction in Newfoundland. The result appears to have been satisfactory, and it is gratifying to know that at the Colonial Conference it has been definitely decided

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