[Sidenote: Prosperity of the colony.] The administration of the colony and of its dependencies is vested in a Governor, aided by a Colonial Secretary, and by an executive and a legislative council. The Governor acts as Chief Justice, and the Colonial Secretary as Police Magistrate. There is a local jail, capable of accommodating six offenders at a time. Its resources are not stated, however, to be habitually strained. Education is compulsory: the Government maintains schools and travelling teachers. The inhabitants are principally engaged in sheep-farming and seafaring industries. The colony is prosperous, with a trade that of late years has grown with extraordinary rapidity. The dividends paid by the Falkland Islands Company might excite the envy of many a London director. Stanley's importance has been increased by the erection of wireless installation; and as a coaling and refitting station for vessels rounding the Horn, the harbour, large, safe, and accessible, is of immense value. [Sidenote: A raid expected.] To this remote outpost of empire came tidings of war in August, 1914. Great excitement and enthusiasm prevailed. News was very slow in getting through: the mails, usually a month in transit, became very erratic. But the colony eagerly undertook a share in the burden of the Empire; L2,250 was voted towards the war-chest; L750 was collected on behalf of the Prince of Wales's Fund. Detached, though keen, interest changed, however, as the weeks passed, to intimate alarm. The Governor, Mr. Allardyce, received a wireless message from the Admiralty that he must expect a raid. German cruisers were suspected to be in the neighbourhood. Never before had the colony known such bustle and such excitement. They, the inhabitants of the remote Falklands, were to play a part in the struggle that was tugging at the roots of the world's civilization. The exhilaration of expectancy and of danger broke suddenly into their uneventful, though not easy, lives. But there was cause for keen anxiety. The colonists were, however, reassured for a time by a visit from three British warships, the cruisers _Good Hope_, _Monmouth_, and _Glasgow_, with the armed liner _Otranto_. [Sidenote: British warships arrive.] [Sidenote: Search for German cruisers.]