§ But, in my judgment, it would also be an act of criminal insanity to throw away £8,000,000 of money which is so much needed for other purposes on building gigantic flotillas to encounter mythical Armadas. That is why we propose only to incur this enormous expenditure when the need for it arises. We must ensure the complete security of our shores against all real dangers, but, rich nation as we are, we cannot afford to build navies against nightmares. It is much too expensive an operation. To throw away millions of money when there is no real need for it purely to appease an unreasoning panic would be to squander resources essential to our safety in time of real danger, and it is the business of a Government to follow with calmness, as well as with courage, the medium path between panic and parsimony, which is the only safe road to national security. However, as it may be necessary to make arrangements for laying down all the eight "Dreadnoughts" on 1st April, 1910, so as to complete them by April, 1912, the financial proposals which I shall submit to the Committee will be of such a character that we can pay for them without resorting either to additional taxation or to the vicious expedient of a loan. Should it on the other hand be discovered that our fears are groundless, and this precipitate "Dreadnought" building is unnecessary, then the money will find its uses either in further endowment of our social programme for the benefit of the masses of the people or in giving the much-promised relief to the local ratepayer. He is entitled to consideration in respect of the increased expenditure imposed upon him both by the late Government and by the present Government, more especially in educational matters. He has also been very hard pressed owing to the increased cost- 481 liness of maintaining the roads, attributable to the development in mechanical traction. I am not sure that it is altogether a fiscal question. It has almost become a great social question, for the municipalities are at the end of their resources, and their work is almost at a standstill in many of these areas because they cannot afford to spend what is absolutely necessary on their development. The local ratepayer has been promised consideration by successive Governments, and he is surely entitled to get it. I think I can safely say more; the financial proposals which I shall lay before the House will enable me to make good that promise.