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214 ECONOMIC INQUIRIES AND STUDIES
two reasons: I. The necessity for increasing the per-
manent standing army by 100,000 to 150,000 men,
which is rendered unavoidable in part by the state of
affairs in Soilth Africa, and in part by the necessity for
strengthening our garrisons in Egypt and other places
which the defects of our want of preparation in South
Africa have made manifest. 2. The evident necessity
which has arisen for increasing sensibly the pay of the
army all round. At present about 150,000 is the number
of the regular establishment, exclusive of India. An
addition of £ 10 per head to the pay ofthis force alone
would come to £1,500,000 per annum; but the addi-
tional pay must be given not to 150,000 merely, but
probably to 250,000 or 300,000 men at the very time
also that preparations are being made for improving the
auxiliary forces at home, and that reserves of stores,
guns, and ammunition are being prepared on a scale
that has not hitherto been thought of. It is hard to see,
then, in what way the doubling of the Army Estimates,
whichjust beforethewarhadmounted upto £ 20,000,000
sterling, can be avoided.
The indirect teaching of the war goes further. It
has brought the country face to face with new and un-
wonted political dangers. The hostility to us of almost
every continental people has been revealed, and the
nation has felt that in its fight in South Africa it has
been fighting not merely the Boers, but the ,continent
of Europe. No continental Government has actually
menaced us with intervention; but the will has been
there, and our success in South Africa will be bitterly
resented. The feeling evidently is in France, in Ger-
many, and in Russia, that England has too much of
the world, and that its dominion should be curtailed.
Germany and France, moreover, are each of them
covetous of some of our possessions for themselves,
and Russia at least finds us very much in the way of
its own enterprises. The other great world-power, the
United States, has also given some encouragement to
the idea of intervention on the sentimental ground of