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A FINANCIAL RETROSPECT, 1861-19°1 313

£2.834,000 now, as compared with £2,569,000 in 1861.
In other words, Customs and Inland Revenue, though
we" collect double the revenue, cost. hardly more now
than 'hey did in 1861.
5. The largest increase in civil expenditure, besides
education, is in the Post Office department, where the
expenditure has risen from about 3 million £ in 1861,
to 13; million £ in 190 I. This is expenditure, as is
well known, which is accQmpanied by a corresponding
growth of revenue, and implies a corresponding in-
crease of services rendered to the country. Even if it
grows, therefore, out of proportion to the growth of
population and income, it is a beneficial expenditure,
and need be viewed without concern, although it may
involve an increase of the charge per head of popula-
tion.
6. We come finally to the real question involved in
the growth of expenditure, viz., the growth of charges
for Army and Navy. It is these charges, including the
charges for actual war, which account mainly for the
whole growth between 1861 and 1901. The increase
in Army and Navy (see Table III.) is in fact 90
million £, if we compare 1861 with the present time,
viz., from just over 3 I million £ to just over 121 million
£. and it is no less than 100 million £ if we compare
1871 with the present time. viz., from 221 million £
to just over 121 million £. There appears indeed to
have been a decided falling off in the charge for the
Navy, especially between 1861 and 1871. so that 1871.
as already mentioned, becomes an exceptionally low
year to start from. What will surprise some of us is
that Army and Navy were kept under, as they appear
to have been. down to as late a date as 1891. so that
then as compared with 1871 they show no greater an.
increase than about 10 million £.
There is. unfortunately, no doubt about the increase
of 100 million £. or thereabouts, since 1&71. We are
spending over 12 I million £. where we spent just over
22 million £ in 1871. Of this increase, as already sug-