The alterations in amounts of unfunded debt after 1865 were caused by the conversion of stock into terminable annuities. The unfunded debt was inclusive of Suez Canal bonds to the amount of 4,000,000l. in 1876, of 3,990,9007. in 1877, of 3,929,2007. in 1878, and of 3,866,300l. in 1879.

The balances in the Exchequer for the sixteen years from 1864 to 1879 amounted to the following sums:

By the provisions of an Act of Parliament, passed in the session of 1875, the national debt is to be gradually reduced by means of a new permanent Sinking Fund, maintained by annual votes of the legislature. The charge of the Sinking Fund for the financial year ending March 31, 1876, was fixed at 27,400,000l.; for the year 1876-77 at 27,700,000l.; and for every subsequent year at 28,000,000l. It was also provided that the charges under this head should be entered under the Consolidated Fund.

Army and Navy.

1. Army.

The maintenance of a standing army, in time of peace, without the consent of Parliament, is prohibited by the Bill of Rights of 1690. From that time to the present, the number of troops which the security of the kingdom and its possessions rendered it necessary to maintain, as well as the cost of the different branches of the service in detail, have been sanctioned by an annual vote of the House of Commons. The amount of the military force to be maintained for the year is always a matter for the decision of the Government. The question is annually brought under consideration, shortly before the commencement of the parliamentary session, at a meeting of the Cabinet, when, on the basis of communications made by the Commander-in-Chief, a decision is arrived at as to the number of officers and men, of each arm of the service, to be maintained for the coming year. Upon this decision, the Secretary of State for War frames the Army Estimates,' or detailed accounts of the strength and cost of the army, which are submitted in 'votes '-25 in the estimates of 1879-80-to the approval of the House of Commons.

Parliament exercises another important means of control over the army. Formerly in time of war, or rebellion, the troops, kept only at such periods, were subject to martial law, and liable to be severely punished for mutiny or desertion. But when armies began to be maintained in time of peace, questions of discipline arose. The common law, which alone prevailed, knew of no distinction between a citizen and a soldier, so that, if the soldier deserted, he could only be punished for breach of contract; if he struck his officer, he was only liable to an indictment for the assault. Such questions soon came before the tribunals, and Chief Justice Holt, when Recorder of London, decided that, although the King may, by his prerogative, enlist soldiers, even in time of peace, still if there was no statute passed to punish mutiny, and to subject them to a particular discipline, they could not be punished for any military offence, and they were only amenable to the same laws as the rest of the King's subjects. Hence the authority of Parliament became necessary for the maintenance of military discipline. Parliament granted this in an Act, limited in its duration to one year, which Act was subsequently passed at the commencement of every session under the name of the 'Mutiny Act,' investing the Crown with large powers to make regulations for the good government of the army, and to frame the Articles of War, which form the military code. Subject to such restrictions, the army has now become a recognised part of the constitution, under the will of Parliament.

According to the army estimates laid before the House of Commons in the session of 1879, the regular army of the United Kingdom— exclusive of India-during the year ending March 31, 1880, is to consist of 7,384 commissioned officers, 17,241 non-commissioned officers, trumpeters, and drummers, and 111,000 rank and file, being a total of 135,625 men of all ranks. This force is to be composed of the following staff, regiments, and miscellaneous establishments:

The following table exhibits, after official returns, the number of men, rank and file, maintained for service in the United Kingdom since the year 1800, at quinquennial periods up to 1870, and from that date to 1876 annually, on the 1st of January in every year :

The distribution of the army on the 1st of January, 1879, was as follows:-40 per cent. of the British army were stationed in England and Wales, 2 per cent. in Scotland, 12 per cent. in Ireland, and 46 per cent. abroad.

The total force of the British army in India was stated to amount to 62,653 men of all ranks in the estimates of 1879-80. The number in the year 1871-72 amounted to 62,864, in 1872-73 to

Q

62,957, in 1874-75 to 62,840, in 1875-76 to 62,850, in 1876-77 to 62,849, and from 1877 to 1880 of 62,653 men. (See India, p. 685.) The troops here enumerated do not constitute the whole armed force of the United Kingdom; but the army estimates for the year ending March 31, 1880, as well as former years, contained votes of money for four classes of reserve, or auxiliary forces, namely, the militia, the yeomanry cavalry, the volunteer corps, and the enrolled pensioners and army reserve force. The total number of militia provided for in the army estimates of 1879-80, was 137,556, comprising a permanent staff of 5,030-to be gradually absorbed in the Brigade Depôts in course of formation-and 133,526 men in training service. The total number of yeomanry cavalry provided for was 14,614, comprising a permanent staff of 284, and 14,330 yeomen. The total number of volunteers provided for was 194,191, comprising a permanent staff of 1,529, and 192,662 artillery, engineers, and rifle volunteers. Finally, the number of enrolled pensioners and army reserve force provided for in the army estimates of 1879-80, was 46,000, divided into two classes, 22,000 men forming the first, and 24,000 the second class.

The total cost of the British army, provided for by Parliament in the army estimates for 1879-80, was calculated at 15,645,7007.; but from this amount there was deducted the sum of 570,500l. for 'estimated exchequer extra receipts,' leaving the net charge as army services for the year ending March 31, 1880, at 15,075,2001. The following is an abstract of the votes of the army estimates for the year 1879-80, with the corresponding sums of the financial year 1878-79 :

ARMY ESTIMATES.