Page 322 - clra62_0019-(GIPE)

314 ECONOMIC INQUIRIES AND STUDIES

gested regarding the growth of expenditure generally,
a large part must be really permanent, but the point
should be specially considered, as a certain part of lhe
general growth of expenditure, viz., the expenditure for
education, and for Post Office, which is also in all
probability permanent, is in an entirely different cate~
gory from expenditure on armaments. We should dis~
regard then, I believe, the classification of 70 million
£ of this army and navy ~xpenditure as being for
"war," and impliedly, therefore, temporary. The ques-
tion is one of opinion, and I should deprecate a very
full discussion here, as involving questions of politics;
but the overruling facts appear to be that a war ex-
penditure for two years amounting to about 70 million
£ a year, followed by an estimate of 40 million £ for
the next year, must be held to indicate a situation of a
chronic character, implying expenditure of a similar
nature for some years to come. The expenditure, in
fact, is not so much for war as for the more or less
permanent occupation of a difficult country, which un-
avoidable circumstan.ces, I for one should admit, com-
pel us to occupy, where there are good reasons also
for believing the burden will diminish, and diminish
greatly, in time, but where improvement is conditional
on our facing the evil at its WOfst. What we have
really to face then on account of South Africa is a
costly army of occupation, with corresponding charges
for an army at home to send reliefs to it as we now
send reliefs to India and our other colonial possessions.
As to Army and Navy generally, also, the international
position appears to be such that for some years to come
the British Empire must exhibit a great and unwonted
development of force. The reason is that we are sur~
rounded as we never were before by great military
powers who possess powerful and increasing navies;
that we have extensive land frontiers in all parts of the
globe, with,. active enemies near them, especially in
Asia and 'Africa, such as we never had before; and
that our staying power, if we are checked, owing to our