Politically, 1909 has been rather a trying year, but the result of the general election on 2nd October seems to give promise of better things in Parliament. Both the Premier and the Leader of the Opposition agree that the practical extinction of the third party by the appeal to the electorate will be beneficial to the country. The election also ratifies the fusion of parties carried out towards the end of last year, with the consequential placing of the Labour party in the position of a constitutional Opposition. These salutary changes are held to be equivalent to a restoration of responsible government, which had been practically suspended by the impossibility of any party carrying on the work of legislation without making humiliating terms with an irresponsible section. It was contended that there were three parties in the country, and that the existence of the same phenomenon in the Assembly proved it to be a true reflex of the electorate at large; but the late general election has dispelled that illusion, for on no occasion since the splitting up of parties had the issue been put in so clear-cut a form to the country. Another result of the election has been to add somewhat to the strength of the Labour members, who are now sufficiently numerous in the Assembly to give them a reasonable expectation of being called upon in due time to assume the responsibilities of government. The State must gain from the resolution of the House into two parties, for the purity and effectiveness of party government demand that His Majesty's Ministers shall always be faced by an Opposition fitted and prepared to become the advisers of the King's representative whenever the existing Administration loses the confidence of the Parliament and the country. As mentioned elsewhere, a most satisfactory event of the year is the prospect of a settlement of the financial relations between Commonwealth and States on a durable and mutually acceptable basis. Public opinion throughout the continent is so clearly in favour of the agreement that its ratification seems certain during the present financial year, and it seems also certain that it will come into force on 1st July next. From that date there is reason to hope that the benefits of federal union will become so conspicuous as to silence cavilling opponents and justify the aspirations of its advocates. The general opinion throughout the Commonwealth with respect to the vital question of national defence has undergone a marvellous change for the better during the past twelve months, the unanimity displayed justifying the most sanguine anticipations of future unbroken concert between Great Britain and her self-governing dominions, and the supremacy of the British Empire on the ocean, a supremacy which means the protection of the world's trade routes and unimpeded maritime commerce.