From what we have seen of the proportion of expenditure that goes to military purposes, it cannot be denied that Germany is increasing her liabilities at an extraordinary rate, and largely for purposes of protection. In the last two years the interest on her increased debt alone, at four per cent., amounts to $5,000,000; while the interest at four per cent. upon military expenditures of all kinds amounts to the tidy sum of $20,000,000 per annum. The German, however, faces these facts and figures, not as a matter of choice, not as a matter of insurance wholly, but as a hard necessity. It is what the delayed conversion of the world is costing him, not to speak of what it costs the rest of us. He is surrounded by enemies; he is not by nature a fighting man; his whole industrial and commercial progress and his amassed wealth have come from training, training, training; and he sees no alternative, and I am bound to say that I see none either, but a nation trained also to defence, cost what it may. The last German estimates (1912) balance with a revenue and expenditure of $671,222,605. The naval expenditure is put at $114,306,575; the army expenditure is put at $192,627,080. Both the army and navy are being largely increased. In the year 1916 the strength of the navy is expected to be about 79,000 men, and of the army and navy combined 767,000. In the last ten years two nations have almost doubled their naval personnel: Germany has increased hers from 31,157 to 60,805, and Austria-Hungary from 9,069 to 17,277. In Great Britain the increase has been about one seventh, and this one seventh is about equal to the present strength of Austria. The gross naval expenditure, estimated, of the United States for 1912 amounts to $132,848,030, and the number of men 63,468. The gross naval expenditure of Great Britain, estimated, for the same year is put at $224,410,235, and the number of men 134,000. The gross naval expenditure of Germany is put at $114,306,575, which includes $489,235 for air-ships and experiments therewith, the number of men 66,783. France proposes to spend, plus an addition due to operations in Morocco, $90,000,000, number of men 58,404; and Japan $44,309,145, number of men 49,389. Two new corps have been voted for the German army, to be numbered 24 and 25; one is for the Russian frontier, with head-quarters at Allenstein, and the other for the French frontier, with head-quarters at Sarrebourg or Mulhouse. A German army corps on a war footing comprises about 52,000 men, with 150 guns and 16,000 horses. The reader should notice, as a reminder of the still latent jealousies of the different states of the German Empire, that the three army corps raised in Bavaria are not numbered consecutively, twenty-one, twenty-two, and twenty-three, but one, two, and three!