The literature on this subject is enormous, and several chapters would be needed to follow it in any detail. I propose, however, to summarize certain points. First. The statements as to race demoralization and deterioration, of decrease of energy for labour; of decrease in other branches of trade; of an increase in crime and decrease of population as the result of the spirit trade, have been totally disproved. They have, indeed, been officially dropped by the Native Races Committee. Secondly. The allegations as to the evil quality of the liquor imported have also been disproved and dropped by the Committee. Thirdly. By a system of sur-taxes upon the higher forms of alcohol initiated by Sir Walter Egerton, the character of the Southern Nigerian spirit trade has been revolutionized for good in the last six years. The system inaugurated in 1905 imposed, over and above the general duty, a sur-tax of ½_d._ for every degree or part of a degree in excess of 12·4 under proof. This sur-tax was successively raised until it reached its present figure of 2½_d._, with the result that while five years ago nearly 60 per cent. of the total spirits imported varied in strength from between 45 degrees and 55 degrees _Tralles_, to-day something like 90 per cent. of the total spirits imported are just under 40 degrees _Tralles_, _i.e._ 28 per cent. under proof. Fourthly. Not only is the general trade (_i.e._ the trade in cotton goods, hardware, etc.) increasing at a far greater ratio than the spirit trade, but the amount of alcohol imported into the Protectorate is actually decreasing, notwithstanding the enormous development of general trade and the steady opening up of the country to which the former is largely due. Here are the figures. They are official and their accuracy has been endorsed by the Secretary of State— GALLONS OF ALCOHOL Years Totals Annual average 1902-04 8,947,000 2,982,332 1905-07 8,746,000 2,915,333 1908-10 8,626,000 2,875,333 Fifthly. The population of Southern Nigeria, according to the 1911 census, is 7,750,000. It is believed to be, and probably is, much greater. Thus on the basis of estimated population the consumption of alcohol per head works out at a fraction over one quarter of a gallon. It is, of course, not nearly so great, and this for several reasons. The alcohol imported is not all drunk, to begin with. A great deal of it is stored, sometimes for years, as banked wealth. A great deal of it, in the Central Province and to some extent in the Eastern Province, circulates continuously as a sort of barter currency. This system, a purely native one (in certain regions cloth and tobacco are also used as currency) will gradually fade away with the increased circulation of silver coin. Then, again, a good deal of it is wasted, poured out on the ground as libations to the gods; how much it is impossible to say.