to make the Empire self-sufficing to the great Lancashire industry.

The shipping industry, as a whole, suffered severely from the lowness of freights. A great many steamers were laid up, and those in use did not in some trades earn a profit. In fact, but for the coal and store charters to Japan and Far Eastern Russia-as well as for the Baltic Fleet-there would have been an even greater superfluity of tonnage than actually made itself felt. Those who look into the causes of the depression have little doubt that if no new tramp steamers were built for a year or two the demand for tonnage might get a chance to overtake the supply. But so far are shipowners from trying to restrict the amount of tonnage afloat that nearly 1,400,000 tons of new vessels were launched in the United Kingdom during the year, or nearly the same new tonnage as in 1903. Shipbuilders, anxious to keep their yards employed, were willing to build at such low prices, and give such easy terms of payment, that shipowners found the temptation to renew their fleets irresistible. A feature of shipbuilding, which the year has brought into prominence, is the tendency towards larger and larger vessels. Size in steamers leads to economy in working, especially with cargo boats, and the demand is now all for size. Two 30,000-ton boats, to be fitted with turbine engines, are being built for the Cunard Company, and there are nine steamers under construction of 15,000 tons and over.

An incident which attracted much attention was the socalled "Atlantic Rate War" between the Cunard Company on the one hand and the International Mercantile Marine Company with its allied German and British lines on the other hand. The immediate cause of the conflict was the successful attempt of the Cunard Company to establish a service between the Mediterranean ports and New York; but the primary cause was the competition between the Cunard and White Star vessels (part of the International Company) in the Atlantic passenger trade from Liverpool. The rate war lasted for some months, and was eventually settled on terms which are understood to give the Cunard Company nearly all for which it fought. I have, in previous volumes of the ANNUAL REGISTER, dealt with the International Mercantile Marine Company-which is the Company formed by Mr. Morgan out of the famous Atlantic Shipping Combination-and it is interesting now to record the passing of this concern from American to British managership. This great combination has been far from a financial success, and the wise step has been taken of making Mr. Bruce Ismay, head of the famous White Star Line, its president. It has, however, long since become clear that the formation of this Combination, with its utterly extravagant capitalisation, will always be a standing object lesson in the worst kind of "American finance."

The iron and steel trades were depressed during the greater

part of the year, and were handicapped in the autumn-when some revival began to take place-by a largely artificial advance in the price of pig-iron. Cleveland warrant iron advanced in three months from 41s. 8d. to 51s. 2d. a ton, most of this advance being due to American speculation in warrants. This advance in iron was reflected in a corresponding advance in steel, and the steps taken to join the forces of the English and Scottish "Steel Combinations" into one group did nothing to keep down prices.

The woollen industry was hampered by the high prices of raw material, especially of the finer grades. The long-continued drought in Australia-now happily at an end-caused immense destruction of flocks, and contributed much to a scarcity of wool. The finer Bradford trade suffered severely in 1904, but the coarser trades of Huddersfield, Dewsbury, etc., got a most acceptable windfall in the orders from Japan for military blankets and winter clothing. These districts are understood to have turned out over 1,500,000l. worth of woollen goods for our Japanese allies during the year. War orders also benefited to some extent the South Wales coal trade, and brought a large increase of business to some makers of guns and other war materials.

There have been better years than 1904 and many worse ones. It is something to be able to say that the twelve months were not so bad as they might have been, and a good deal better than was at one time feared.

F. HARCOURT KITCHIN.

FOREIGN AND COLONIAL HISTORY.

CHAPTER I.

FRANCE AND ITALY.

I. FRANCE.

"THE situation has become intolerable," exclaimed the President of the Council, at a banquet arranged by the Republican Committee of Commerce and Industry on the eve of the opening of Parliament. This remark was received with cheers, and in a very unusual way gave the keynote for the whole year. The character of parliamentary contests became increasingly harsh and tenacious, and in every question-religious, military, naval or judicial-inexhaustible material was found for bitter dispute.

As early as the first week of the year an incident occurred on the frontier which made a good deal of sensation throughout the country. The Catholic Club of Lunéville had invited the Abbé Delsor, Curé of Marlenheim in Alsace, and Deputy in the Reichstag for the district of Molsheim, to deliver a political discourse. The law not allowing the meeting to be forbidden, the Prefect for the Department of Meurthe-et-Moselle, M. Humbert, thought that the wisest course would be to issue an order of expulsion against the orator as a German subject. Only two hours' grace was accorded him (Jan. 7); and this decision was confirmed by the Minister of the Interior.

On the 12th the Parliamentary session opened. M. Bourgeois, who had been absent from Paris almost constantly through the preceding year on account of domestic bereavements, having resolved to refuse to stand for the Presidency of the Chamber, the Left invited M. Brisson, who consented, to be their candidate. His opponent-M. Ribot declining to be nominated-was M. Bertrand, an estimable politician indeed, but of no great note. Nevertheless, M. Brisson narrowly escaped defeat. The number of voters being 508, the absolute majority was 255, and the deputy for Marseilles received exactly 257.

On the 15th a significant incident occurred. An interpella

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tion had been raised by the revolutionary Socialists as to the action of the police in pursuing into the Chamber of Labour certain strikers who had maltreated agents of the Bureau of Employment (v. ANNUAL REGISTER for 1903, p. 259). The interpellation failed, but the revolutionary Socialists then ingeniously proposed a resolution inviting the Government to compel its agents to respect the laws and the guarantees of liberty. No Socialist who valued popularity could help voting for this motion, and the Ministry found itself deserted by the whole of its left wing. Then followed a scene which, in essence, was repeated more than once in the course of the year. M. Combes pleaded guilty, and acknowledged that the police had been in the wrong, but would not consent to separate himself from M. Lépine, whereupon MM. Maujan and Deville hastened to the assistance of the Cabinet by drawing up an order of the day, giving a vote of confidence for the future; and this expedient once more rallied the usual majority.

On January 22 the battle began again, with the expulsion of the Abbé Delsor as the subject of dispute. The Nationalists accused the Ministry of having allowed the Belgian Socialist Deputy, M. Van der Velde, to make incendiary speeches, while they had expelled from France a representative of Alsace. The Minister of the Interior replied by reading quotations from a journal published by the Abbé Delsor, in which he congratulated the Alsatians on having escaped from the ignominious yoke of the Republic. Notwithstanding protestations from M. Ribot, the order of the day, pure and simple, which was accepted by the Government, was passed, and ended the battle from the parliamentary point of view. But the Nationalist Press took hold of the incident, and kept it in reserve as a serious argument to be remembered at the time of the municipal elections in May. The Chamber spent some considerable time in discussing a proposition of M. Bourrat in favour of the repurchase by the State of the Western and Southern railway systems. For several sittings the case for and against this measure was discussed, with a great display of statistics, before empty benches. At last, on the 26th, at the instance of the Minister of Finance, the question was referred to the Commission, and so for the time was shelved.

Another question, of considerable importance in itself, but not calculated to rouse political passions, was taken up and speedily dealt with. It was that of the extension of the powers of the juges de paix. A measure for this purpose, due to the initiative of M. Jean Cruppi, was carried through all its stages. without alteration, and on the 9th of February was passed by an almost unanimous vote (510 against 19).

The principal political interest of the moment was in the Senate and in the lobbies of the Chamber. In the Senate the second discussion had begun on the Bill dealing with secondary education (see ANNUAL REGISTER for 1903, pp. 259-61), and

this matter, so closely bound up with the question of the congregations, set by the ears the most eminent orators on both sides of the house, and occupied almost the whole of the month of February. The numerous amendments proposed by the adversaries of the bill were successively defeated by a majority of nearly 100, and the whole measure was finally adopted on the 23rd.

On the other hand, the strength of the Ministerial majority in the Chamber was threatened by dissensions between the Radicals and the Socialists. At a meeting at St. Etienne, in spite of the energy displayed by the Parisian Deputy, Gustave Rouanet, the Revolutionaries showed themselves preponderant by nearly three to one. M. Jaurès, who concerned himself zealously to maintain accord between the sections in question, sought to promote that object by bringing about a declaration in the Chamber, shortly after the outbreak of the war in the Far East, against the continuance of the FrancoRussian alliance. This scheme failed. The Radical Left, the most numerous section of the Bloc, held a meeting, at which it was decided to vote for the maintenance of the alliance between the Republic and the Tsar's Government (Feb. 18). Some days later the Union Démocratique came to the same decision; though declaring at the same time their desire that hostilities in the Far East should be limited to the two Powers engaged. The Government, however, was obviously embarrassed during the course of this incident-so divided, indeed, that a split seemed at hand between MM. Combes, André, Pelletan and Trouillot on the one side, and MM. Rouvier, Delcassé and Chaumié on the other; the latter Ministers having the support, it was said, of the President of the Republic in person. Alarm began to be felt on the Paris Bourse, where the Three per Cents. fell sharply to 93 francs 35 centimes. Some small defeats were inflicted on the Ministers in the Chamber of Deputies, notably in the case of a proposal to modify the law with regard to the municipal elections in Paris. The capital is divided into eighty quarters, of which each one elects a municipal Councillor; but these quarters are very unequal as regards size and population. M. Maujan proposed to assign to the more populous sections additional municipal Councillors. The Government supported this proposal, but the Radicals hesitated, and being, in consequence, reviled by the Socialist Radicals and the Socialists, they threw their strength against the Maujan proposal, which was accordingly rejected (Feb. 25) by 293 against 226.

The experience was a sharp one, but, as usual, the Government had not far to go to find the best way to rally its disorganised forces. It sufficed to represent that the Catholics, far from having laid down their arms, were preparing to take the offensive again. In Brittany five officers of a regiment, stationed at Vannes, were ordered to Plöermel to assist at the