The Mercantile Navy of the Dominion is larger than that of France. It comprises seven thousand ships, of the aggregate tonnage of one million and a quarter; while the tonnage of Great Britain is six million. Canada has invested in her shipping a capital of seven and a half million sterling. She uses the timber of her forests in building ships for herself and for other countries. The annual product of her building-yards is considerably over a million sterling. The burden laid by taxation upon the Canadians is not oppressive. Taxation is raised almost entirely in the form of custom and excise duties, and amounts to four million sterling. This is an average rate of one pound for each of the population; not differing appreciably from the rate of taxation in the United States, but being considerably less than one-half of that which now prevails in Great Britain. Canada trusts for her defence against foreign enemies to her militia and volunteers, of whom she has nominally a large force. But only a handful of these are annually called out for a few days of drill, and the Dominion spends no more than £200,000 upon her military preparations. Her fleet is equally modest, and consists of a few small steamers which serve on the lakes and rivers, and mount in all about twenty guns. Besides the outlays incurred in carrying on the ordinary business of Government, large sums, raised by loan, are annually expended on public works. Navigation on the great rivers of Canada is interrupted by numerous rapids and falls. Unless these obstructions be overcome, the magnificent water-way with which Canada is endowed will be of imperfect usefulness. At many points on the rivers and lakes canals have been constructed. The formidable impediment which the great Fall of Niagara offers to navigation is surmounted by the Welland Canal, twenty-seven miles in length, and on which, with its branches, two and a half million sterling have been expended. Much care is bestowed, too, upon the deepening of rivers and the removal of rocks and other obstructions to navigation. The vast distances of Canada render railways indispensable to her development. The Canadian Government and people have duly appreciated this necessity. They have already constructed seven thousand miles of railway, and are proceeding rapidly with further extension. The cost of railways already made amounts to eighty million sterling, of which Government has provided one-fourth. Very soon Canada will have a length of railway equal to one-half that of Great Britain. But the disposition to travel has not kept pace with the increased facilities which have been provided. The average number of journeys performed annually by each Englishman is seventeen, while the Canadian average is not quite two.