political. The centenary exhibition demonstrated most effectively the wonderful growth of Norway's resources during the past century.

The Storthing assembled on January 12. M. Lövland was re-elected President of the Storthing and M. Mowinckel of the Odelsthing. On the following day the King in person opened the sixty-third ordinary Storthing. After a reference to the centenary and the century of peace enjoyed by the nation, he stated that the past year had been satisfactory in most departments of home enterprise, and announced a number of measures for the furtherance of industry and commerce; the Budget had been framed without resort to fresh taxation. It showed an ordinary expenditure of 154,900,000 kroner (8,605,555l.) and an extraordinary of 15,081,000 kr. (837,8331.), a total of 169,981,000 kr. (9,443,3887.). The ordinary expenditure showed an increase of 12,880,000 kr., reduced by certain counter-items to 7,300,000 kr. On the revenue side certain taxes and other sources of income exhibited an increased yield over that of the previous year. Even thus early M. Castberg, the Minister for Commerce, expressed views diverging from those of his colleagues: he desired a higher income tax and legacy duties and a reduced Customs tariff.

On January 20 the Government introduced a proposal to appoint a Defence Commission of fourteen civilian members, with the right, however, of calling in military experts. The Commission was to investigate all questions connected with national defence, both military and financial, and examine into the possibility of adopting a system on Swiss lines in order to effect a closer connexion between the Army and the nation.

During the debate on the Customs tariff in February the Premier caused some surprise by not attending the Storthing, and it was understood that on this subject M. Castberg had managed to override his chief. In the debate on the Labour Arbitration Bill, again, M. Knudsen, the Prime Minister, had to humour his troublesome colleague by stating that, in view of the undoubted divergences of opinion on the arbitration clause, he felt sure that both the Government and the Storthing would be most careful in resorting to compulsory arbitration. They would let the contest between employers and employed go on until both sides felt that the struggle must be ended and that the authorities must interfere. M. Castberg declared himself much reassured, and hoped that the statement meant that the new institution should be used; when the men themselves demanded it, for the protection of their interests. Nevertheless he continued to emphasise his divergent views as against the more moderate members of the Government, more especially the Premier, not only in the House but at public meetings; and on April 16 this very Radical Social Minister resigned his seat in the Cabinet, preferring to work as a private member for his aims and ideals. He differed also from M. Gunnar Knudsen

on the question of maximum working hours, insisting on a nine hours' day and a fifty-one hours' week, whereas the latter would not go beyond a ten hours' day and fifty-four hours' week.

On February 28 the Storthing rejected the proposal of M. Bryggesaa, the Minister for Ecclesiastical Affairs, to annul Clause 7 of the Constitution, empowering the King to propose a successor should there be no heir. In the same sitting the Storthing also rejected the proposal to make women eligible as Ministers of State, although M. Abrahamsen, the Minister of Justice, defended the proposal. The adverse minorities were respectively 41 and 44.

On April 23 the Storthing considered the exploitation of the large Nore waterfalls, owned by the State; general disappointment was felt when M. Urbye, the Minister of Public Works, stated that the plans had not yet been finally dealt with, and therefore would not come before the House in the current session.

In the beginning of May the Military Committee of the Storthing handed in their report on the Army Estimates, amounting to 17,550,500 kr., an insignificant fraction less than the sum proposed by the War Department. There were to be no more Generals, the field artillery regiments were each to be divided into three, and the extension of the regimental drills from twenty-four to thirty days would be dealt with in a separate Bill.

On May 13 the Storthing, by 78 votes to 44, decided to divide the Parliamentary session, in accordance with the decision in the Union of the Left, the Government stating that they, too, were in favour of an autumn session, although they did not give their reason. Several Committees were to continue their labours during the recess.

On June 9 the Storthing, by 85 votes to 25, passed a resolution, requesting the Government to see that all alcoholic drinks were prohibited at all military and naval practices, for all ranks alike. The resolution, however, was not acted upon.

On

On June 26 the Storthing decided that the principal naval dockyard should be extended and that two submarines should be built at Norwegian yards. On July 4 the proposal to appoint a Defence Commission was passed by the Storthing, the adverse minority being 35. The Premier stated that the most important question for the Commission to consider was whether more effective results could not be obtained for the actual military expenditure. More especially the Swiss system should be borne in mind. July 6 the Storthing unanimously passed the new extraordinary defence tax on income exceeding 4,000 kr. (2227.) and capitals exceeding 100,000 kr. (5,555l.). The tax is to be levied according to a sliding scale, which deals somewhat leniently with incomes not exceeding 10,000 to 15,000 kr. (555l. to 8321.). The measure is subject to revision as regards the fourth term of the tax, and will thus come up for further consideration hereafter.

Just before the close of the session (July 3), the Premier made

a Cabinet question of a vote of some 250,000 kr. for the instruction of small holders, a question to which he had given much time and attention. M. Hagerup-Bull, the Conservative spokesman, complained that Cabinet questions were getting rather too frequent. The measure was duly passed.

The session was closed on July 8. The Storthing was to meet again on October 19, but the war altered its arrangements entirely. The results of the six months' work were very moderate, and some of the Government measures were severely criticised and left for subsequent revision.

The war, however, necessitated a short extraordinary session, and the Storthing met again on August 8, a circumstance which was in itself a telling comment on an unfortunate reference by the Premier in the spring "to the cloudless sky of Europe." The War Minister (M. Keilhart) resigned the same day and was succeeded by General Holtfodt, Norway's youngest General. A vote of 10,000,000 kr. (555,555l.) for extraordinary military measures was promptly passed and other measures were adopted in view of the situation. A general moratorium had already been proclaimed; the Government was empowered to extend it, and to render the notes of the Bank of Norway temporarily inconvertible into gold. Much satisfaction was expressed at what might be described as a declaration of confidence between Norway and Sweden. Before the members separated the President emphasised the spirit of unity which had marked the proceedings during the short extraordinary session, all contentious questions being for the present left entirely in abeyance. Under these circumstances the work done later on was confined to some committees which meet in October. All the important measures, including a revision of the law on insurance against sickness, an extension of the Bank for workmen and small holders, and a comprehensive measure of reform of factory legislation, were left for a more favourable season, politically and financially. Naturally a drain on the Treasury is set up in many ways, directly and indirectly, by the war.

The Storthing of 1914 formally closed its session at a meeting on January 8, 1915. In spite of a very active German propaganda, the national feeling tended to favour the cause of the Allies.

The Spitzbergen Conference was opened in Christiania on June 16. Twenty-three representatives were present from nine countries (Great Britain, the United States, Russia, France, Holland, Germany, Denmark, Sweden and Norway). The conference had not completed its labours when the war broke out, and separated with the understanding that it would again meet early in 1915.

CC

CHAPTER V.

SOUTHERN ASIA.

I. PERSIA.

THE Viceroy of India, in his speech closing the Imperial Legislative Council on March 24, in which he reviewed briefly foreign affairs in connexion with India, was able to speak of the work of the Swedish officers and the gendarmerie organised by them as eminently successful. The force was employed during the winter in patrolling the roads, and it dealt with the robber bands which infested them. The improvement in the returns of British and Indian trade in Southern Persia was the best evidence of the efficiency of the work of the gendarmerie. Another force dealt with the situation on the trade route between Bunder Abbas and Kerman, and, although it had some serious engagements with the Perso-Baluchi tribes, there was every reason for confidence in its ability to establish order in the near future.

The young Shah Sultan Ahmad Shah, now a youth of sixteen, was crowned with considerable ceremony at Teheran in July, and took the oath of fidelity to the Constitution before the Mejliss. He was only a child of eleven when his father, Mahomed Ali, was driven into exile, and no opinion can yet be formed of his character or abilities.

When Turkey joined in the war against England and her Allies the Persian Government, on November 4, issued a Proclamation declaring a strict neutrality. This however did not prevent a Turkish force from advancing on Tabriz during the last days of the year. The local Persian authorities were not in a position to offer any resistance; they could merely record a formal protest, to which the Turks replied that they would evacuate Persian territory when the Russians did so.

II. THE PERSIAN GULF AND BALUCHISTAN.

An agreement was concluded with the French Government by which France recognised the new arms traffic regulations drawn up by the late Sultan of Muscat at the instance of the British Government, and abandons the privileges and immunities secured by ancient treaties. It is hoped that this will effectually stop gun-running on the Mekran coast.

III. AFGHANISTAN.

The relations between the Government of India and His Majesty the Amir continued to be cordial.

Representations had to be made regarding serious outrages on the Frontier by residents of Afghanistan and by outlaws from

British territory who had taken refuge in Khost. These representations were met by the Amir in the most friendly spirit, and he issued stringent orders to his officers on the Frontier to deal severely with all offenders. It was reported that the Khost outlaws implicated had been arrested and sent to Kabul for trial.

In his reply to the Viceroy's letter, announcing the outbreak of hostilities between Great Britain and Turkey, the Amir expressed his deep regret at the step taken by the Turkish Government, and declared his firm intention to maintain a strict neutrality, and added that he had issued a proclamation enjoining the same on all his subjects.

IV. NORTH-WEST FRONTIER.

Apart from the raids from Afghan territory already mentioned, the Frontier remained quiet with two exceptions. An outrage by the Utman Khels in the north of the Peshawar District led to a blockade of the tribe, which produced the desired effect.

On

There were two serious raids by the Bunerwals in which eight British subjects were killed and considerable property taken. February 23 a column was sent to punish the villages mainly at fault. In spite of the most trying conditions of weather and roads the operations were carried out most successfully. The force met with little serious opposition, and returned without loss after inflicting exemplary punishment on the offending villages.

V. BRITISH INDIA.

(1) FINANCE.

At the meeting of the Imperial Legislative Council on March 2 Sir William Meyer, the new Financial Member, reviewed at length the annual Statement which had been presented a few days previously. After paying a warm tribute to his predecessor, Sir Guy Fleetwood Wilson, he pointed out that, owing to the disappearance of the Chinese opium revenue and other causes, the prosperity budgets and large surpluses which had marked the latter's term of office, and had enabled the Imperial Government to distribute doles to the Provincial Governments, could no longer be looked for. It was, however, a matter for congratulation that the ordinary revenue had been sufficient to provide for the necessary expenses of the Government without imposing additional taxation.

Revised Estimate, 1913-14.-The Budget Estimate, given in millions sterling with decimal points, showed Revenue, Imperial 53-044, Provincial 29-280, Total 82-324; Expenditure, Imperial 51.718, Provincial 32-193, Total 83-911. The result was thus an Imperial surplus of 1.326, and a Provincial deficit of 2.913, or a total excess of Expenditure over Revenue of 1.587. A Provincial