A study of the sequence of events which immediately preceded the outbreak of hostilities is hardly less interesting than the earlier and dramatic incidents which enabled us to face the supreme crisis in our history with a measure of assured confidence. On March 17th, 1914, Mr. Winston Churchill spoke in the House of Commons on the Navy Estimates. It is common knowledge that he had just fought a stern battle in the Cabinet for adequate supplies, and it was assumed at the time, from various incidents, that he had been compelled to submit to some measure of retrenchment. He received, however, Cabinet authority to ask Parliament for the largest sum ever devoted to naval defence--£51,500,000. In the course of his speech on these Estimates he made the announcement that there would be no naval manœuvres in 1914. He stated: “We have decided to substitute this year for the grand manœuvres--not, of course, for the numberless exercises the Fleet is always carrying out--a general mobilisation of the Third Fleet.[4] We are calling up the whole of the Royal Fleet Reserve for a period of eleven days, and those who come up for that period will be excused training next year, and will receive £1 bounty in addition to their regular pay. “We have had a most admirable response. 10,170 men, seamen, and others, and 1,409 marines, are required to man the ships of the Third Fleet. We have already, in the few days our circular has been out, received replies from 10,334 men volunteers, and from 3,321 marines. I think that reflects great credit on the spirit of the Reserve generally, and also reflects credit upon the employers, who must have greatly facilitated this operation all over the country. I hereby extend to them the thanks of the Admiralty. “This test is one of the most important that could possibly be made, and it is really surprising to me that it has never been undertaken before. The cost, including the bounty of £1, will be about £50,000. Having no grand manœuvres yields a saving of £230,000, so there is a net saving on the substitution of £180,000.” [4] The Third Fleet consists of the oldest ships of the Navy maintained in peace with skeleton crews.