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374 ECONOMIC INQUIRIES AND STUll1ES
Tortune, more will be spent in all probability in this
direction, as new wants are certain to arise. After all,
100 millions for internal government-for that is what
the figures come to, if we except the post office, where
the expenditure is largely productive-is not an enorm-
ous amount for a community with an income of 1,750
millions, being little more than 6 per cent.
There remains the sum of, 70 millions for army and
navy, for military defence. This matter was discussed
so fully two years ago in a paper which I read at the
London Bankers' Institute,l that it seems permissible
not to dwell on it now. The principal points may,
however, be repeated. Army and navy being defence
expenditure, the question of the amount to be spent is
for the most part hardly optional. Defences of a certain
quality and extent have to be found if the community
is not to go under, and the question how much these
should cost is really one for experts. Nor does a sum
of 70 millions appear overwhelmingly burdensome for
a community with an income and capital so great as
has been described, the proportion of 70 millions to
the aggregate annual income of the people being about
4 per cent., and to the accumulated wealth, on the cal-
culation above made, about 0.47 per cent.-not a heavy
rate of insurance. A comparison of the expenditure of
the great military nations-Russia, Germany and
France-also shows that we spend less and not more
in proportion to means. F or these and the like reasons,
the conclusion seems unavoidable that there is no real
prospect of economy in armaments, and that an increase
beyond the present amount is not improbable. Always,
however, let me repeat, the question is not one about
which there is any real choice. The nature of our
government tends to cause neglect of these matters.
At a given moment we are more likely to be under-
armed than over-armed. But no matter what the govern-
ment, the pressure to arm and prepare for emergencies

1 See supra, vol. ii., pp. 278-305.