The machinery for rifles and machine-guns takes eight and nine months to construct before you begin to turn a single rifle or machine-gun. The Germans have undoubtedly anticipated the character of the war in the way no other Power has done. They realized it was going to be a great trench war. They had procured an adequate supply of machinery applicable to those conditions. The professional man was essentially a very conservative one--(hear, hear)--and there are competent soldiers who even today assume that his phase is purely a temporary one, that it would not last long, and we shall be back on the old lines. I have no doubt much time was lost owing to that opposition. The Germans never harbored that delusion, and were fully prepared to batter down the deepest trenches of the enemy with the heavy guns and high explosives, and to defend their own trenches with machine-guns. That is the story of the war for ten months. We assumed that victory was rather due as a tribute from fate, and our problem now is to organize victory, and not take it for granted. (Cheers.) To do that the whole engineering and chemical resources of this country--of the whole Empire--must be mobilized. When that is done France and ourselves alone, without Italy or Russia, can overtop the whole Teutonic output. The plan on which we have proceeded until recently I explained to the House in April. We recognized that the arsenals then in existence were quite inadequate to supply the new Army or even the old Army, giving the necessary material and taking into account the rate at which ammunition was being expended. We had, therefore, to organize new sources of supply, and the War Office was of opinion that the best method of attaining that object was to work through existing firms, so as to have expert control and direction over companies and workshops, which up to that time had no experience in turning out shells and guns and ammunition of all sorts. There was a great deal to be said for that. There was, first of all, a difficulty unless something of that kind was done of mobilizing all the resources at the disposal of the State. The total Army Estimates were L28,000,000 in the year of peace. They suddenly became L700,000,000. All that represents not merely twenty or twenty-five times as much money; it means twenty or twenty-five times as much work. It means more than that, because it has to be done under pressure. The sort of business which takes years to build up, develop, strengthen, and improve has suddenly to be done in about five, six, seven, or eight months. The War Office came to the conclusion that the best way of doing that was to utilize the skill of existing firms which were capable of doing this work. The War Office staff are hard-working, capable men, but there are not enough. There is one consideration which cannot be left out of account, and that is that men who are quite equal to running long-established businesses run on old-established lines, may not