The year opened amid continuing apprehension for the peace of Ulster, and sharp controversies on subjects so widely different as the discipline of the Church of England and the needs of naval defence. Though conversations were understood to have been resumed between the Liberal and Unionist leaders regarding the possible terms of settlement of the Home Rule question, it was clear that much difficulty would be found in effecting a solution; and the Bishop of Durham advised the clergy of his diocese to make the first Sunday of the year a day of intercession for peace in Ireland--advice which was followed in other parts of the country also. And the dissatisfaction of the Ministerialist rank and file at the shipbuilding expenditure of the Board of Admiralty was expressed by Sir John Brunner, the President of the National Liberal Federation, and powerfully stimulated by an interview with the Chancellor of the Exchequer published on the first day of the year by the _Daily Chronicle_. Mr. Lloyd George declared that, had British armament expenditure remained at the figure regarded by Lord Randolph Churchill in 1887 as "bloated and extravagant," a saving would have been effected equivalent to 4_s._ in the pound on local rates, or, on Imperial taxes, to the abolition of the duties on tea, sugar, coffee, and cocoa, and all but 2_d._ in the pound of the income tax. The question might now be reconsidered for three reasons: (1) Anglo-German relations were far more friendly than for years past; (2) Continental nations were devoting their attention more and more to strengthening their land forces, so that Germany in particular must be thus precluded from any idea of challenging British naval supremacy; (3) a revolt against military supremacy was spreading throughout Christendom, or at any rate Western Europe. Unless Liberalism seized the opportunity, it would be false to its noblest traditions, and those who had its conscience in their charge would be written down for ever as having betrayed their trust. Sir John Brunner, as chairman of the National Liberal Federation, urged that Liberal associations should pass resolutions in favour of reduction of armament expenditure before the Army and Navy Estimates were settled, and he and several Liberal papers urged, as one means of reduction, the exemption of private property from capture at sea.