The management of the Royal Dockyards has now been placed on a much sounder footing, more akin to the organisation in similar commercial establishments, where any undue extravagance or unnecessary executive machinery means loss of money to the shareholders, and is visited by pains and penalties on the officials directly responsible. At the same time the desirable possibilities of ready expansion in war time to suit the varying requirements of a purely naval repairing and building establishment have been maintained. The Navy also sees the great strategic advantages of our Fleets exercising where they are likely to fight. As Nelson said, “_The battle ground should be the drill ground_.” The placid waters and lovely weather of the Mediterranean do not fit our seamen for the fogs and gales of the North Sea, or accustom them to the rigours of a northern winter, when the icicles hang down over the bed or the hammock of the Torpedo Boat Commander and his men, as in the North Sea last winter when we sent 147 Torpedo Craft suddenly to exercise at sea; and though sent on a full power trial of many hours, on first being mobilised, not a single defect or breakdown was experienced. Since that date the arrangements for the Torpedo Craft have been still further perfected, and now the Destroyers are all organised according to the strategic requirements of the situation of the moment, and are definitely detailed in flotillas and divisions, with their store and repair ships and reserves, according to the approved modern methods of torpedo warfare as exemplified in the Russo-Japanese War. The Navy also sees and welcomes the untold advantage given by the Nucleus Crew system of instant war readiness, as exemplified when last July all our vessels, large and small, in reserve went to sea unnoticed by the Press and engaged in fighting Manœuvres in the Channel with 200 pendants under the chief command of the Admiral of the Channel Fleet. No calling out of Reserves or such disorganisation as was incidental to the old system, when the crews of ships in commission had to be broken up to leaven the ships of the Reserve that then had no crews at all. CHAPTER X NAVAL EDUCATION I.--COMMON ENTRY. (_Written in 1905_). On the 25th of December, 1902, the new system of entry and training of officers for the Navy was inaugurated. The fundamental principles of this great reform are:-- (_a_) The common entry and training of officers of the three principal branches of the Service, viz., Combatant or Executive, Engineer, and Marine. (_b_) The practical amalgamation of these three branches of officers. (_c_) The recognition of the fact that the existence of the Navy depends on machinery, and that, therefore, all combatant officers must be Engineers.