partly manned should be used as drill ships for training the Royal Naval Reserve; the remainder should be kept in commission fully manned. The drill ships and one other vessel were to be manned by Australians and New Zealanders paid at special rates. They were officered by officers of the Royal Navy and Royal Naval Reserve. Eight nominations for naval cadetships were to be given annually to the Commonwealth and two to New Zealand. An annual charge of 200,000%. was to be paid to the Imperial Government by the Commonwealth, and 40,000l. by New Zealand.

On April 30, 1915,1 the naval forces of the Commonwealth were as follows:-Permanent naval forces (sea-going), 3,730; administrative and instructional staff, 148; reserves-adults, 2,038; reserves-senior cadets, 3,332; R. N. Reserve (sea-going), 175; Total, 9,423.

The policy of the Commonwealth is to make Australia self-defending. Having accepted the position that a fuller Imperial partnership is necessary for the future security of the Empire, and that a definite place in the Pacific has been allotted to Australia, the Government agreed in 1911 to furnish an Australian Fleet Unit, upon which King George conferred the title of "Royal Australian Navy." The main obligations of the Commonwealth were to provide a battle cruiser of the Indefatigable class; three unarmoured cruisers of the Bristol class; six destroyers of the improved "River" class; and two submarines of E' class; also the necessary auxiliaries such as docks and depôt ships. This fleet to be one of the three divisions of the Eastern fleet working in close association with the China and East Indies squadrons of the Royal Navy-all being under one control in war; but the Australian Unit being controlled by the Commonwealth Government in peace. The personnel to be subject to the King's regulations, and under naval discipline. The vessels to be manned as far as possible by Australians, supplemented by Imperial officers and men. The old British light cruisers Encounter and Pioneer were handed over for training purposes, and the Melbourne, Sydney, and Brisbane (Bristol class) were built

During the war the Australian squadron was actively employed, the battle cruiser Australia in operations against German bases, the light cruiser Sydney against German commerce raiders, in which capacity she sank the Emden. The two submarines have been lost one by accident, the other in action.

1 No further information is available.

Production.

Up to the year 1916, 860,891,358 acres, representing 45 22 per cent. of the total area of the Australian Commonwealth, were either unoccupied or occupied by the Crown; only 5'55 per cent. had been actually alienated (105,671,344 acres); 2.93 per cent. (55,821,888 acres) was in course of alienation; and 46 30 per cent. (881,347,250 acres) was held under the various forms of leases and licenses.

The area under crops (distinguishing the principal crops) in the Commonwealth, and the yield in 1916-17, were as follows:

1 Beets worked. The sugar manufactured was 1,948 tons, and molasses 40 tons.

2 Tons per acre of productive crops.

25,201 acres of productive vines.

3 Including 35,430 tons for wine from 4 Gallons per acre of productive vines.

The total area under all crops in 1916-17 was 16,806,380 acres. The total value of agricultural production in the same year was 60,206,7647. Of Australia's total forest area of 102,000,000 acres, 14,137,746 acres have been specially reserved for timber. Wheat acreage 1917-18, 9,678,000 acres ; yield, 114,886,000 bushels. Oats acreage, 1917-18, 580,000 acres; yield, 9,850,000 bushels. The total sugar crop of 1916-17 was 335,000 tons; and the estimated yield for 1917-18 is 315,000 tons.

At or about the end of 1916 there were in the Commonwealth 2,437,000 horses, 10,459,000 cattle, 76,669,000 sheep, and 1,006,763 pigs.

The production of wool in 1916-17 amounted to 547,702,295 lbs., valued at 35,964,0007., and the exports to 339,222,250 lbs. greasy, valued at 22,339,8207., and 56,687,100 lbs. scoured and tops, valued at 6,613,5187. The exports of tallow amounted in value to 1,252,2667.; of sheepskins to 1,152,9947.; and of frozen meat to 7,600,9831. The butter produced in season 1916-17 amounted to 182,470,778 lbs., and 75,361,869 lbs., valued at 5,338,8487., were exported during that period.

The mineral products were valued at 25,600,000l. in 1917, including: gold, 6,180,0001.; silver and lead, 5,510,0007.; copper, 4,860,0007.; tin, 1,050,000l.; coal, 5,600,000. Total mineral production up to end of 1917 was 928,100,000l.; of this amount 584,110,000l. was the value of gold.

Statistics of the manufacturing industries in the Commonwealth in 1916 are given as follows:--Number of establishments, 15,010; hands employed, 316,917; salaries and wages paid, 33,828,8407.; value of plant and machinery, land and buildings, 84,591, 9461.; value of materials used, 105,180,4457.; value added by manufacture, 67,394,4007.; value of output, 172,574,8457.

The estimated value of the products of the Commonwealth in 1914, 1915, and 1916 were:

1 This amount differs from that given in the preceding paragraph, owing to certain products which are there included having been included in Dairy Farming and Forestry in this table.

The total wealth of Australia is estimated at upwards of 1,600,000,000.

Commerce.

Throughout the Commonwealth there are uniform customs duties, and trade between the States is free. For 1917-18, the net revenue collected from customs duties amounted to 13,223,9167.

The following table shows for 6 years the value of the imports and exports

(merchandise, bullion, and specie) into or from the Australian Commonwealth from or into countries outside the Commonwealth.

1 Excluding ships' stores.

2 First six months only. 3 In 1914 the trade year was changed from the calendar to the financial year ending June 30. 4 Preliminary figures, subject to amendment.

5 Excluding bullion and specie.

The value of goods imported represents the amount on which duty is payable or would be payable if the duty were ad valorem. The value of goods subject to duty is taken to be the fair market value in the principal markets of the country whence the same were exported, with an addition of 10 per cent. to such market value.

The Customs Tariff Act of 1914 provides for preference to goods produced in and shipped from the United Kingdom to Australia as against the goods of other countries, and also affords a larger measure of protection to Australian industries than previous tariffs.

The value of goods exported is the value in the principal markets of the Commonwealth in the usual and ordinary commercial acceptation of the term. More important imports and exports in 1917-18 (provisional) :—

The total imports and exports of bullion and specie in three years were :

Trade with the more important countries, 1915-16 and 1916-17 :

Share of the States in Foreign Commerce (merchandise only), 1917-18 (provisional):

1 In this table the value of goods sent from one State of the Commonwealth to another State thereof for transhipment abroad has been referred to the State from which the goods were finally despatched.

The following tables show the principal imports (consignments) into the United Kingdom from, and exports from the United Kingdom to,

SHIPPING AND NAVIGATION

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the Commonwealth in four years, according to the British Board of Trade Returns:

The quantities of wheat, wool, and meat imported from Australia into the United Kingdom in five years were :—

Shipping and Navigation.

Number and net tonnage of the registered vessels :

1 Of barges, hulks, dredges, etc.. not self-propelled, there were in 1914, 286 with a tornage of 66,223; in 1915, 277 with a tonnage of 68,771; and in 1916, 270 with a tonnage of 68,232.