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19. The amount expended by the New Zealand Government cm naval and military defence for each of the last ten financial years is as follows : —

II. Main Features of the Existing Scheme. The Influence of Peace. 20. All military institutions should be built so as to be as peace-proof as possible : if they are to stand the strain of war it is essential that they should offer no foothold to the steady sapping and mining of politics. Under modem conditions the aspirant to public service can only get there by being in the majority, and that majority are attracted by things which catch the eye, but are repelled by any technicality. A mass of inadequately trained men may impress an electorate very favourably ; it is difficult, nay, almost hopeless, to enthuse them by the purchase of rifle ranges. Forts reassure the city during perilous times, but once the danger has passed it is discovered that big guns break window-panes. Then in due course the practice is discontinued, and the guns, though they may appear unchanged, have lost the best part of their value namely, the skill and self-confidence of the men who stand behind them. Let peace only endure and these same sort of sentiments extend at last to the personnel. A cautious administrator appeals to the representatives of the people more than a leader of character and boldness. So at last we reach the final stage when great commands are given to " good peace Generals." Military institutions have then become a name, an illusion. Actually they will have ceased to exist. Study of War-conditions essential. 21. Such are the lessons of experience, and they teach us that the foundations of the military institutions of a country should be so well and truly laid upon the rock of reality that the upper stories of the building shall offer the maximum resistance to the disintegrating forces which are certain, as time goes on, to try persistently to undermine them. The moment war-conditions are lost sight of the mind of the nation will begin to suffer from dangerous illusions. Especially is this the case where the form taken by defence is that of a national Militia. Here there is no room for peace commanders, peace soldiers, or peace systems. .The time devoted to training is so limited and students of war are so few that all classes, civilians as well as militiamen, are bound to quit the iails of efficiency the moment the system practised in peace ceases to be a war system pure and simple. Responsibili/)/ of the Soldier. 22. Hence it comes that a weighty burden of responsibility must ever rest upon the shoulders of the military chief or chiefs charged with the direction of the affaiis of a citizen army. The position demands some of the intuitions of statesmanship, as well as a competent grasp of the true meanings of war. There must be quickness to comprehend the limitations imposed by political and social factors ; temper and self-restraint to enable parleys to be conducted with the faddist and the miser. For lack of such quickness and such temper brave soldiers pitchforked suddenly into high place in the councils of a democracy may in less than no time undo all the hard work of their predecessors. Theoreticallv the blunfsoldier asks for perfectionfand'acceptsfnothing less. Actually he gets just as much as he can, by his own pertinacity and enthusiasm, coax from the pockets of his employers.

Naval. Military. Battle- cruisn. 5fear. (Contribution to the Admiralty. Total Interest Naval ExContribu- and Sinking penditure. tion paid Fund paid out of out of ConLoan, solidated Fund. Paid out of Consolidated Fund. Paid out of Public Works Fund. Total Total Defence ExMilitary penditure. Expenditure. 904-5 905-6 1906-7 [907-8 1908-9 [909-10 .910-11 [911-12 912-13 913-14 £ 40.000 40,000 40,000 40,000 40,000 100,000 100,000 100,000 100,000 50,000* £ £ £ £ 40,000 40,000 40,000 40,000 40,000 .. ! 100,000 489,289 8,904 598,193 I (i()5.7ll 91,687 797,398 525,000 103.102 728,102 69,035 ; 126,995 246,030 £ £ 188,251 111.103 159,459 ; 36.869 152,705 16,415 176,426 : 21,153 195,685 ! 18,063 190,346 10,349 205,269 8,936 401,870 11,581 505,267 24,129 488,569 30,725 £ £ 237.357 277,357 196,328 236.228 169,180 209,180 197,579 237,579 213,748 ! 253,748 200.695 i 300,695 214,205 , 812,398 413,451 1.210,849 529.396 1,257,498 519.294 765,324 489,289 605,711 525,000 69,035 * The balance ( ho 31st March, 191 N.B.—The toti nents of interest a >f the £100,0 4. il cost up t( nd sinking f K) due for tl ) due for the year 1913-14 wai. at t I,,- request of the Admii raltj . nut paid until after the early j ind will ceai the early part of June, 1914, of tli nd will cease in approximately Bixti ie battle-cruiser was £1,1 een years' time. 698,035 : the annual pay-

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