§ A great part of the increase of our expenditure has been, as I have said, on armaments. Very well; it has been the result of the rivalry in armaments which we all deplore. We have had to follow the increased armaments of other nations. But under what conditions? Other nations have ordinary and extraordinary Bud- 1007 gets, by which they conceal the real amount of their expenditure. Other nations do not scruple, if they want more ships, or more guns, or more soldiers, or more sailors, to add enormously to their permanent debt for these purposes. We do nothing of that kind. Our Naval and Military Estimates, be they great or be they small, represent the naval and military expenditure of the year. And, more than that, if we not only desire to provide for what we call temporary matters, such as ships or guns, but also have to provide permanent works, such as harbours, dockyards, or barracks, which ought to last for generations; nay, if we purchase land in this country for the purpose of military manœuvres, or for rifle ranges, which will be a permanent asset to the country's good, what do we do? We do not add to our permanent debt. No, Sir; we borrow for a short term of years, and we repay the sum borrowed by annual votes of Parliament for the interest and sinking fund of such debt. Now, I hope the Committee will not suppose that this is all. It is not all; for during the very time that our Naval and Military Estimates have in this way gone up by ten millions and a half—during that very time we have devoted no less than £29,296,000 to paying off the old debt which we have not incurred ourselves, but have inherited from the past. Sir, I think the Committee will not suppose for a moment that I am alluding to this matter as wishing to alter the practice that has prevailed. Long may it prevail. It is really the only safeguard of this country in these days from something like financial ruin.