The conversion of the railway system into Government property will, apart from the question of economy already referred to, provide a most important advantage to the State. For example, the War Office can make use of the railway system, not only for the purposes of transport, but for the erection on surplus land throughout the country of barracks, stores, and other buildings, for wireless telegraph stations and for aviation purposes. The Admiralty will have the use of the great docks and wharves now owned by railways. The Civil Service will also find ample space for additional office accommodation, often in the most convenient spots both in town and country. Still more important even than these advantages is the fact that by the removal of all money restrictions from transport, not only an immediate but a =progressive increase of traffic= will result. That this will be so is shown hereafter when considering the question of the finance of the scheme, but it is referred to here as one of the most important advantages of the scheme, apart from the benefits to the nation already referred to of free circulation of passengers and goods. In the first place, the increase of traffic will require in all probability the whole of the staff now employed, who would otherwise be thrown out of employment by reason of the economies referred to above. It will be noticed that in the estimates given under the heading of “Finance of the Scheme” no decrease, but on the contrary, a slight increase has been estimated for in the working expenses, notwithstanding the enormous saving to be anticipated by the abolition and reduction of wasteful expenditure under the present system. My reason for so doing is partly to err on the side of caution in the estimates, but also to provide for the probability of having to retain the whole of the existing staff, and possibly increasing their wages and reducing their hours of labour. Most of the economies referred to must necessarily be effected gradually; for instance, the clerical staffs of the various railway companies and of the Railway Clearing House would be required for some considerable time in the process of winding-up, and by the time this is finished the traffic will have still further increased and their work will then be required in the more necessary departments of, say, the Goods Clearing Houses throughout the country. Secondly, the progressive increase of traffic will produce a corresponding increase of revenue which will be available for extensions and additions, for electrification of lines, and other improvements in means of transport, and ultimately even in still further reduction in charges, but last and by no means least in the adoption of appliances and inventions for the safety of life and limb both of passengers and railway servants.