and Germany, but in view of British superiority in seaplanes it was sufficient. Of the 260,000_l._, 200,000_l._ would be the year's portion of a total expenditure on airships of 475,000_l._ and the rest would be for seaplanes. (3) The increase in wages was necessary to keep pace with that in other shipyards, and the increase of prices in victualling and clothing was automatic. (4) and (5) The acceleration of the ships replacing those from Canada would be set-off by lessened expenditure in 1915 and 1916; the over-earning by the contractors had been foreseen by him in introducing the Navy Estimates for 1913. There were many factors of uncertainty in shipbuilding, and delay of one part reacted on others. It was absurd to charge the Admiralty with miscalculation in the matter. To have asked for more in the original estimates would have given a false idea of expansion. He absolutely denied the story that he had given orders to accelerate construction in August, 1913; he had neither the will to do so nor the power. To retard construction was impracticable and undesirable. The House should demand good reasons for the building of every ship asked for; having done so, it must accept liability for the cost. Mr. Lee (U., _Hants, Fareham_) denounced the system of returning unspent balances to the Treasury as tending artificially to swell the Naval Estimates, and tempting an astute Minister like the First Lord to under-estimate, The situation with regard to oil fuel was disquieting, and he expressed anxiety also about the shipbuilding programme. On the other hand Mr. Ramsay Macdonald (L., _Leicester_) declared that the Estimates were not really supplementary, but began a new programme, and he regarded the British and other Governments as the victims of a careful plan of the international armament firms, A reduction, moved by Mr. D. M. Mason (L., _Coventry_), was rejected, after further debate, by 237 votes to 34. The debate was continued next day, when there was a stormy scene over a reduction proposed by Lord R. Cecil (U.) in order to call attention to the housing of the Admiralty labourers at Rosyth. The Chairman was charged with unduly favouring the Government, and an attempt at a snap division was defeated by Mr. Leif Jones, who spoke amid continual disorder. Eventually the reduction was defeated by 272 to 132, and later the First Lord, in a general reply, denied that there had been any acceleration of the shipbuilding programme, and said that there was no prospect of "breaking the armaments ring" by getting armour from competing firms abroad. He would do so if he could (a statement which roused protests) or would start a State factory, but this latter would involve a heavy capital charge. The Vote was agreed to.