The blue ensign, Fig. 96, is the flag of the Royal Naval Reserve, and may be flown by any merchant vessels that comply with the {57} Admiralty conditions respecting that service. Such vessels must be commanded by officers of the Reserve, and at least one-third of their crew must belong to it: they then, the structural conditions being satisfactory, receive a Government subvention and an Admiralty Warrant to fly the blue ensign. Officers commanding Her Majesty's ships, meeting with ships carrying the blue ensign, are authorised to go on board them at any convenient opportunity and see that these conditions are strictly carried out, provided that they are of superior rank to the officers of the Royal Naval Reserve. The men of the Reserve receive an annual retainer and drill pay. The number of men in the Reserve, at the time we write these lines, is 10,600 in the first class and 10,800 in the second. The first class Reserve is composed of the men on the long voyage ships, the second being the fishermen and coasting crews. In addition to this there are some 3,000 engineers and stokers, and some 1,500 or so of officers, all equally prepared to rally to the pennant and to take their place in the national defence. This utilisation of the faster vessels of the Mercantile Marine as cruisers in war time has seriously engaged the attention of the Admiralty. The Government gives an annual subsidy, and then claims the right to the vessel at a fixed charge in case of emergency. Such vessels would be of immense service in time of war in many ways: for scouting, for transporting troops, and for engaging such of the enemy as she felt fairly a match for. When, some few years ago, it seemed as though war with Russia was imminent, the _Massilia_ and the _Rosetta_ of the Peninsula and Oriental Company's fleet were put in commission by telegraph at Sydney and Hong Kong respectively. These vessels were provided at once with warlike stores, and were at gun practice off the ports referred to a few hours after the receipt of instructions, and ready to go anywhere. This Company, during the Crimean War, carried over sixty thousand men to the scene of operations, and during the Indian Mutiny, the war in the Soudan, and all other possible occasions, has rendered the greatest aid to the State. The _Teutonic_ and the _Majestic_, of the White Star Line, each carry twelve Armstrong guns, and could either of them land two thousand infantry at Halifax in five days, or at Bombay in fourteen days, or at Hong Kong in twenty-one; and many other armed cruisers of the Mercantile Marine, that we need not stay to particularise, could do as much, and as effectively, flying the Blue Ensign as worthily as those we have named.