in a leader of a race akin to the German and who had shared in war against Great Britain only a few years before, General Smuts. soon added to his reputation by a sane survey of the situation in his public speeches and private counsels. Within a few months he had been sworn of the Privy Council, given the Freedom of London and other great cities, made a Doctor of Laws in half-adozen Universities, heard at important meetings as one of the greater British statesmen would be heard, recognized by the press as a leader of public opinion, accepted as one of the chiefs in the Imperial Conference, called to the Imperial War Cabinet and retained there as a permanent member-with, at 47 years of age, his personality, his pictures and his name known in every part of the British Empire and in every Chancellerie of Europe.

Speaking at a London banquet on May 22 he declared that the military training of African natives should be forbidden: "An army might be trained there which would be a danger to civilization. Again, we must remember that we have now secured a through route from Egypt to the Cape, protected not only on the land, but on the sea side. I hope this will be borne in mind when the settlement after the War comes about." In similar speeches-made from time to time in all the British centres of thought-General Smuts emphasized two points (1) that Boer and Briton were fighting together for an ideal of liberty that was universal and that (2) peace would be suicide if accepted before civilization was secured in its future right to freedom. As he put it at Sheffield on Oct. 24: "We cannot make peace until the German war machine becomes a scrap of paper and Germany has learned the lesson that war does not pay, that the wages of sin is death." His view of Imperial relations was concisely expressed at a banquet given him by both Houses of Parliament on May 15:

How are you going to keep this Commonwealth of nations together? It seems to me that there are two potent factors that you must rely upon for the future. The first is your hereditary Kingship, the other is our Conference system. As to the first you cannot make a republic of the British Commonwealth of nations. If you had to elect a President, he would have to be a President not only here in these Islands, but all over the British Empire-in India and in the Dominions and be really representative of all these peoples. Here you would face an absolutely insoluble problem. ... In regard to the present system of Imperial Conferences, it will be necessary to devise better machinery for common consultation than we have at present. Of other matters of importance it may be stated that official figures* showed the total direct War expenditures of the Union Government from Aug. 4, 1914, to Mar. 31, 1917, as £3,239,461 from Revenue account and £23,454,145 from Loan account, with at least £1,000,000 of indirect war expenditure or an approximate total of $138,000,000. According to James R. Leisk, Secretary for Finance, the major portion of the Loans was borrowed from the Imperial Government. As to voluntary contributions H.E. Lord Buxton had appealed in August, 1916, for an increase in the Governor-General's Patriotic Fund for Soldiers to £1,000,000 within 12 months. On Feb. 28, 1917, he was able to report the receipt of £1,006,334 or $5,000,000, *NOTE.-Obtained through the courtesy of W. J. Egan, Canadian Trade Commissioner at Cape Town.

and to state that the monthly expenditure under the Fund was - £27,000 or $135,000. By Provinces the contributions showed £331,000 from the Transvaal, £258,000 from the Cape, £183,000 from Natal, and only £13,000 from the Free State. There were many other War Funds and no central authority over them, but a general estimate, including machine guns, aeroplanes, Red Cross, etc., would indicate another £1,000,000 or $5,000,000 of voluntary contributions.

New Zealand and Newfoundland

in the War.

New Zealand continued its gallant and efficient service to the Empire in 1917. Its Coalition Government had commenced work in 1916 and the New Year found its leaders-Rt. Hon. W. F. Massey and Sir Joseph Ward-in England where they remained for the Imperial Conference. Conscription was in force and the first calls for military service had given thousands. Prices were high and increasing with a difference, for instance, between the value of 11 chief New Zealand exports for the year of July 31, 1916, at current figures and those assessed at 1914 figures, of $55,000,000; the population was found to be 1,100,000 or an increase of 141,000 since 1911; the War expenditure up to June 30, 1917, totalled $142,000,000 and war loans $120,000,000, while a War Purposes Loan Bill in August authorized the borrowing of $120,000,000 more at 412% with one-half asked for at once which was over-subscribed by $15,000,000.

Old-age pensions were increased by $1.25 a week and a War bonus to Civil Servants of $2,000,000 a year was voted by the Legislature; the Budget of the year, presented in August by Sir Joseph Ward, showed an ordinary revenue of $91,835,000 and a surplus, apart from the War, of $21,000,000, with the imposition of various new taxes a progressive land tax, tax on unimproved values, a progressive income tax and a super-war tax on incomes, an amusements tax and increased customs and excise duties. The Public Debt was $627,000,000 as compared with $458,000,000 in 1914. In recognition of New Zealand's position in the Empire it was created a Dominion by the Imperial Government and the Governor raised to the status of a Governor-General.

The chief issue of the year was enforcement of the Conscription Act. The Court of Appeal declared the Act valid on Apr. 4; the Government did as that of Great Britain had done and as Canada did later, relegated the question of exemptions to special tribunals; by June, 1917, thousands of volunteers had come forward as well as 10,000 men under the compulsory call; Sir James Allen, as Acting Premier and Minister of Defence, carried out his task with fair success. There had been difficulties. Thousands of appeals were lodged, the Military Service Boards were increased from four to ten, and at times the situation was chaotic; drastic War Regulations as to sedition were deemed necessary, Labour was restive and the question of primary production and workers inevitably prominent.

The Coal-mine strike of April was undoubtedly seditious in origin and the action was not a complete cessation of work but a deliberate, pre-arranged limitation of output which threatened the country with a severe fuel famine, the curtailment of war industry and hampering of transportation. The men announced in a Manifesto that they had no quarrel with the Companies: "In the present instance it is Conscription alone and nothing but Conscription." Yet the Service Boards were granting exemptions to all miners actually engaged in mining. On Apr. 25 the strike was settled on a basis of essential mine-workers being exempted with other conditions which eliminated penalties, released prisoners and really played with the principle involved. This trouble was a reflection of the Labour opposition to Conscription in Australia; a large number of the miners were really loyal to the War and many had sons at the Front. A little later some municipal elections were fought on the Conscription issue and its opponents were snowed under by votes. On July 6 Sir Joseph Ward intimated, in reply to protests against curtailment of railway services in order to release men for the Front, that the time must come "when it may not be possible to let any more men go"; Mr. Massey agreed with this view but, at the same time, stated that the authorities in England had made a special appeal to him for more men.

The Pacifists and men of similar type in the Dominion at once seized on these words to argue that the best service was production of food, etc., with a distinguished member of the Legislative Council urging the export of sheep rather than men; but Sir James Allen, Sir Francis Bell and Mr. Massey himself soon put a quietus on this argument. By the middle of the year 74,000 men had gone to the Front, of whom 3,200 were in Egypt and Palestine, 12,000 were in training camps, and the returned men numbered 10,547, of whom 1,238 re-enlisted; the casualties had been over 26,000 and the proportion of wounded returning to the Front was 61%. Reinforcements were, at this time (August) reduced from 15 to 12% or in weekly drafts from 2,400 to 1,920. In August, also, the Police were given enforcement of a law which aimed at enrolment of every man of military age in the Dominion in an Expeditionary Force Reserve; those not responding were subject to a fine of $250 or imprisonment for three months. In calling up the men for active service it was decided that the basis for married men should be children-those without any being called first.

A National Efficiency Board prepared a basis under which every man and woman in the Dominion should do some form of War work if necessary; Maoris were brought under the Compulsory Act and trouble was caused by the inclusion of priests in the drafting ballots. They were supposed to be exempted but some of the Boards objected and there was much friction-the Dominion Catholic Federation finally protesting vigorously: "(1) That such compulsion of clergy is abhorrent to the minds of Catholics and without precedent in English-speaking countries; (2) that the number of such clergy is too insignificant to make their service as soldiers of material value in winning the War; (3) that the religious minis

trations of all such clergy and religious assistants are absolutely necessary within the Dominion." During the prolonged nine months' visit of Mr. Massey and Sir J. G. Ward to Great Britain they took part in matters of Conference and Cabinet import and in May and June returned home via Canada where they addressed a number of Canadian Club meetings.

New Zealanders distinguished themselves as usual on the Western front, with Messines as the central incident of the year. In the great Battle of Arras one of the objectives was Messines Ridge and the most important points of this Ridge, which overlooked the Ypres roadways and operations, were the villages of Wytschaete and Messines. The London Times correspondent had this to say of the capture on June 7: "It is to the New Zealanders that the honour of winning the village of Messines fell, and they did their work, as always, cleanly and well, with very light casualties, and, after the success, they consolidated and fortified their ground with a thoroughness and precision which deserve the highest praise. Between the New Zealand, Australian and Irish troops were the stanch English regiments, who have done, as always, magnificently. They have carried everything before them, and, so far as we know at present, there is no flaw in our success.'

Sir Douglas Haig reported of the 3rd Battle of Ypres that on July 31 the attack on the 2nd Army front had met with complete success. On the extreme right New Zealand troops carried La Basseville after a sharp fight lasting some 50 minutes. On the left English troops had captured Hollebeke, etc.-together they got 6,100 prisoners. During the attack of Oct. 4 New Zealand troops carried Gravenstafel, and drove the enemy from a network of trenches and strong points on the Gravenstafel Spur. On Oct. 12 another kind of incident occurred when the New Zealand division was assigned to attack the Bellevue ridge and other positions 2,000 yards from Passchendaele village. "We thought," wrote the New Zealand correspondent with the troops, "at the time that we were up against a stiffer proposition than we had tackled at Messines, stiffer even than at the Somme. Greasy, muddy, waterlogged shell-holes, concrete redoubts fronted with wire and crammed full with machine guns; in addition to all this the artillery had the greatest difficulty in getting up the guns." In the end the advance was found impossible and, finally, it was given up with a New Zealand loss of nearly 5,000 men. In this and other battles great heroism was shown and Corp. Samuel Frickleton, Lieut. Rupert Vance Moon, Pte. Thomas Cooke, Cpl. Leslie Wilton Andrew won the Victoria Cross. Five others had won the honour in preceding years, including, perhaps, the youngest General officer on Service-Brig.-Gen. B. C. Freyberg, D.S.O., who, in 1917, was only 28 and had been twice wounded in Gallipoli and again at the Ancre.

Other incidents of the year included the purchase of Cheese by the Government on behalf of the British authorities at 911⁄2 pence for 1st grade and 94 pence for 2nd grade, with the statement that if sufficient cheese was not offered the necessary amount would

be seized and requisitioned; the continued control by the Imperial Government of New Zealand lamb and mutton with prices of 612 pence per lb. to 4% per lb., the use in this respect of Government agents and elimination of profiteering; the purchase of New Zealand wool by the British Government at a total price of about $70,000,000 and involving prices which were satisfactory but not exorbitant; the increasingly sympathetic legislation for women which was described by Lady Ward when in Toronto (May 29) as including Mothers' pensions or annuities, widow's annuities and grants for the care of orphans up to 14 years, State training of mothers in the care of infants, and, of course, the franchise; a continued shortage of shiping aggravated, in the case of this Dominion, by inadequate storage facilities for meat, butter and cheese; the official statement* that by Mar. 31, 1917, the New Zealand people had contributed to various War and Patriotic Funds $16,095,000 in money and $1,490,000 in goods. Retail food prices had increased 30% over July, 1914 —about the same rate as in Australia.

The Island of Newfoundland, like New Zealand, was recognized as a Dominion in official title during 1917 and its War record certainly merited the compliment. Sir W. E. Davidson, who since 1913 had been the successful Governor of the Island was appointed to New South Wales in October and his successor was Sir Charles Alexander Harris, K.C.M.G., C.B., C.V.O., who for a number of years had been associated with the Colonial Office. In politics Newfoundland went through the same experience as Canada and Australia and formed a Coalition Government. Sir Edward Morris still remained the strongest personality in the local political world; he had been a member of its Government for 15 years and Premier since 1909; but new problems and conditions required new men and the closer co-operation of parties. The Premier saw this and endeavoured to bring them together-not an easy task in a country where party feeling and personal prejudices ran high and were often bitter in the extreme. In the House of Assembly, with a membership of 36, the Government held 21 seats and the Opposition 15, but the latter claimed that a majority of the votes at the last Elections had been cast for them-a result due to the fact that the Fishermen's Union Party, a new organization which had sprung to life in the northern districts, swept nine constituencies by enormous majorities, and now were supporting the Opposition.

Another Election was due and was claimed to be very undesirable in War-time; but the Opposition, under Dr. Wm. Lloyd and W. F. Coaker of the Fishermen's Party, did not accept this view, demanded an Election, and strenuously fought the proposal to extend the duration of the Legislature by special Act. Early in July a deadlock developed in the business of Parliament and the Government could not even pass its Revenue bills. Finally on Aug. 16 the Premier announced that all parties had come to a war agreement, that permission had been obtained from the Imperial Government to increase the Cabinet from 9 to 12, that a Bill would

*NOTE. By courtesy of W. A. Beddoe, Canadian Trade Commissioner at Auckland,