lowing reservations: Newfoundland's claims regarding the southern boundary of Labrador, which would have given it part of the original Province of Quebec, were dismissed. Woody Island, opposite the Bay of Blanc Sablon, claimed by both litigants, was awarded to Canada. In the arguments Newfoundland was represented by Sir John Simon, K.C., Mr. Barrington-Wood, K.C., Hon. W. J. Higgins, K.C., Attorney-General of Newfoundland, Mr. W. T. Monckton and Mr. C. H. Pearson; Canada was represented by Mr. H. P. Macmillan, K.C., (of the Scottish Bar), Mr. Aimé Geoffrion, K.C., Mr. Maurice Alexander, K.C., Mr. H. Stuart Moore and Mr. C. P. Plaxton, of the Canadian bar.

After the decision was announced there was some inconsequential agitation in the Canadian press in favour of abolishing appeals to the Privy Council but it evaporated when it was understood that only an outside tribunal could settle a dispute of this kind. In Quebec, the dissatisfaction took the form of a resolution in the Legislature which was ultimately repudiated by the Premier, Hon. L. A. Taschereau.

Newfoundland. In Newfoundland, its victory before the Privy Council securing to it vast areas of spruce forests and valuable water powers, was the most important event of 1926. Local depression was created in the last quarter of 1926 by a shrinkage of about $3,000,000 in the fishing revenues, owing to a drop in prices. Imports and exports in 1926 almost balanced each other and in each instance exceeded $27,000,000. Nearly fifty per cent. of imports were from Canada. Public revenues and expenditures stood each at a little less than $10,000,000 with a slight margin on the latter side. The Public Debt on Jan. 1st, 1927, was $69,517,303 and was shortly afterward increased by a loan of $5,000,000 subscribed in London. In sealing and paper and pulp manufacture the island was prosperous but there was a slight falling-off in iron production.

The Monroe Government, elected in 1924, found difficulty in implementing its reform programme and in March the Prime Minister revealed the fact that he had suggested a coalition to the Opposition which had been refused. To test public sentiment a By-election was held in East St. John's in April, 1927, which resulted in a victory for the Opposition. Mr. Monroe, left with a majority of but one, decided, however, to meet the Legislature, which he immediately called for May 11 to consider only measures of first importance, and intimated that there would be an appeal to the people in the early Summer. During the year Newfoundland suffered the loss by death of two of her most noted public men, Sir Michael Cashin and Sir Robert Bond, both of whom had filled the post of Prime Minister.

Ireland. The period under survey was in the main one of progress in the Irish Free State. In June, 1926, the Labour Party decided to broaden out by admitting to membership others than members of recognized trade unions. During the course of the year, Prof. William Magennis, member of the Dail Eireann for the National University of Ireland, announced the formation of a new political party under the title of the "Peoples Party and National Protectionist League." It aimed, not merely at tariff protection, but at a reopening of the northern boundary question settled by the London agreement of December, 1925. It was charged also that the Party sought to smooth the way for the entry of the Republican leader, Mr. De Valera, into the Dail by securing the abolition of the oath of allegiance to the British Crown. A split in the ranks of the Republican faction, in which Miss Mary McSwiney took exception to De Valera's leadership, discouraged this project. Steps were also taken by Capt. William A. Redmond (a son of the late John Redmond) and Thomas O'Donnell, ex-M.P. for Kerry, to reorganize the old Nationalist party founded by Parnell.

The Free State Banking Commission reported in January, 1927, in favour of the creation of a new currency of legal tender notes, backed pound for pound by British Government securities, and guaranteed by the Free State Treasury, equal, roughly speaking, to £8,000,000, all old secured notes to be immediately converted. Trade returns for the year showed an excess of imports over exports of £17,855,000. Imports from Great Britain amounted to nearly £35,000,000,

and exports to that country to nearly £31,000,000. Imports from Ulster were approximately £5,607,000, and exports thereto nearly £5,115,000. Imports from other countries were upwards of £13,000,000, and exports only a little more than £1,182,000. Payments to the British Government on outstanding accounts were in a satisfactory condition. The Finance Minister, Mr. Ernest Blythe, was able, on Apr. 21, 1927, to announce a reduction in the income tax from 4s. to 3s. in the pound as a result of the country's strengthened financial position. The gross National Debt was estimated by him at £16,854,400.

After the dissolution of the Free State Parliament a General Election was held on June 9, 1927, the final results of which were issued June 15, as follows :

On June 23, the fifth Dail Eirean met at Leinster House, when Mr. Cosgrave was re-elected President of the Executive Council by 68 votes to 22, all the members of the Labour Party voting against him. Mr. De Valera and the other Republicans, who refused to take the oath of allegiance, were excluded and withdrew under protest. After an adjournment the House met again at 6 o'clock, and Mr. Cosgrave announced the new Ministry as follows:

President of the Executive Council.
Minister for Justice and External Affairs.

Minister for Defence..

Minister for Local Government.

Minister for Education..

Minister for Agriculture..

Minister for Fisheries and the Land Commission.

Minister for Posts and Telegraphs...
Minister for Finance...

Minister for Industry and Commerce.

Mr. W. T. Cosgrave.
Mr. Kevin O'Higgins.
Mr. Desmond Fitzgerald.
Mr. Richard Mulcahy.
Mr. J. M. O'Sullivan.
Mr. P. J. Hogan.
Mr. F. Lynch.
Mr. J. J. Walsh.

Mr. Ernest Blythe.
Mr. P. J. McGilligan.

Parliamentary Secretary to the Minister for Finance, Mr. James Burke.

Mr. Cosgrave also announced that a new Ministry for Works would be formed, comprising supplies, the Stationery Office, and all public works. All the new Ministers were to be members of the Executive Council, all "extern Ministers" having been abolished.

The Ulster Parliament was opened on Mar. 15, 1927, and in the King's Speech the public were congratulated on a marked reduction in unemployment and a stimulation of the linen industry that had stabilized foreign exchange. Road improvements and temperance legislation were announced. The annual Budget provided for economies in all the public services totalling nearly £700,000, leaving estimated costs of government at £7,079,502. An extra tobacco duty of 8d. per pound was announced.

Australia. Politically the year 1926-27 was a troublous one in Australia, and much disturbance was caused by the question of Federal vs. State rights. A moot question was raised early in 1926 in New South Wales where it was suggested that after the termination of present appointments only Australians be appointed States Governors. Hon. Mr. Amery, Secretary of State for the Dominions, who was communicated with on this point, expressed the willingness of the British Government to comply with this request so soon as it was clear that the majority of the Australian people desired the change. Early in 1926 there was much rancorous discussion over a plan submitted by the Prime Minister, Rt. Hon. S. M. Bruce, to abolish the system of per capita contributions by the Commonwealth administration to the States and substitute a system of grants based on actual needs. He also proposed to leave income taxation to the States by way of compensation. A conference of State premiers held in May failed to produce agreement. In June, 1926, an Australian federal loan for £6,000,000 was successfully floated in London, though later in the year the idea became current in London that there was danger of overborrowing by that section of the Empire.

The Commonwealth Budget showed a surplus for the financial year 1925-26, of £287,000 in addition to £2,500,000 paid into the fund for special services. Increases in gasoline and motor car taxes were announced which would yield a revenue of £1,500,000 to be applied to the cost of road construction on which Australia proposed to spend £35,000,000 in ten years. There was some complaint that Canada was not adhering loyally to the spirit of the Australian Trade Treaty, because she had invoked the dumping regulations in her tariff against Australian butter. There was also a complaint that canned salmon prices had increased under the Treaty. Considerably increased agricultural production in wheat and wool was recorded.

Mr. Bruce secured the adoption by the Commonwealth Parliament of two Bills designed to give that body fuller constitutional authority, but each containing the proviso that it must be ratified by a national referendum. The first gave the Federal Industrial Arbitration Court final power to overrule all State industrial courts. This was designed to get rid of the evil of conflicting decisions between the Federal and State courts. The second measure empowered the Government to carry on the public services in the event of their being interrupted or threatened by a general strike. The referenda were taken on Sept. 4 and both proposals were defeated by a two to one majority.

A Royal Commission to investigate relations between the State and the Commonwealth was appointed in January, 1927. In the same month was begun a new railway at Oodnadatta, South Australia, which was to extend 291 miles northward touching the very heart of the continent at Alice Springs. The entry of Hon. E. G. Theodore, former Premier of Queensland, to the Commonwealth Parliament, in a By-election in which he defeated a Nationalist candidate by a very large majority, was taken to signify his accession to the leadership of the Labour Party in opposition to the Nationalist Party headed by Mr. Bruce. Efforts were made in several sections to rid the Labour Party of Communist elements. In March, 1927, the Bruce administration narrowly escaped defeat in Parliament in connection with a Bill to abolish per capita contributions, but was finally sustained by a majority of six.

The launching of the powerful cruiser Australia, the latest addition to the Commonwealth Navy, at Glasgow on Mar. 17, caused much favourable comment when the retiring High Commissioner, Sir Joseph Cook, said it was Australia's policy to pay her fair share of the cost of Naval Defence. On Mar. 22 Mr. Bruce announced that a successor to Sir Joseph had been found in Major General Sir Granville Ryrie, a veteran of the South African War and the Great War.

The last sittings of the Commonwealth Parliament to be held in the temporary capital of Melbourne took place on Mar. 24, 1927, when suitable valedictory speeches were made by various leaders. The political quarrels which had marked the year were temporarily suspended on May 9 when the Parliament House of the new capital at Canberra, which had been under construction for some years, was officially unlocked by H.R.H. the Duke of York. In his speech the Duke said he hoped that the ceremony would mark the re-dedication of the Commonwealth to the great ideals of liberty, fair dealing, justice and peace. Titles and honours were bestowed on several connected with the construction of the new Capital, and a feature of the occasion was the singing of the National Anthem by Madame Melba.

New Zealand. At the beginning of June, 1926, the Prime Minister, Rt. Hon. J. G. Coates, announced a reconstruction of his Cabinet, rendered necessary by the retirement of Sir Francis Ball, Attorney General, and the appointment of Sir James Parr as High Commissioner in London. In the Cabinet changes Mr. Coates himself took charge of the portfolios of Public Works, Railways and Native Affairs. At the same time it was announced that a loan of £6,000,000 had been well received in London. Political harmony marked the

year.

The New Zealand and South Seas Exhibition at Dunedin attracted over 3,000,000 visitors from various regions and there was much praise for the magnificent display of Canadian products. Agriculture continued to progress and there were interesting developments in the growth of hemp and alfalfa.