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As the table shows, the total number of vessels engaged in the shipping trade of the Commonwealth of Australia during 1901 was 1,651 more than the figure for 1891, and the returns of tonnage show an increase of nearly ten millions. The average tonnage of shipping is 1,406, as compared with 956 in 1891, and 563 in 1881. The explanation of this increase of course lies in the fact that a superior type of vessel is now engaged in the shipping trade, and the enterprise of the great European and American trading companies will doubtless have the effect of raising still higher the average for succeeding years. It is somewhat remarkable to find that the vessels engaged in the inter-state trade have more than kept pace in increase of tonnage with those trading between the Commonwealth and other countries. Of course, the increase in the average tonnage of inter-state vessels is represented as greater than it actually has been, because the mailsteamers on their way to Sydney are cleared at Fremantle, Adelaide, and Melbourne for the states further east; but when allowance has been made on this score, the improvement in the class of vessel trading in local waters will be found most noteworthy. It is well known, however, that the steamers running on the Australian coast favourably compare with those engaged in the coasting trade of the United Kingdom.

The trade of the Commonwealth with New Zealand appears as external shipping in all returns given in this chapter, and has, therefore, not been distinguished separately, but in the following table will be found figures showing the total shipping of that Colony with all

countries:

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The above figures show that, although the number of vessels bas decreased by 102 since 1891, the total tonnage has increased by about 895,000 tons, while the average per vessel is nearly double that of 1891.

RELATIVE IMPORTANCE OF PORTS.

The relative importance of the various ports of the Commonwealth of Australia and New Zealand may be ascertained by an inspection of the table given hereunder. Melbourne takes first place in the amount of tonnage; but the figures are inflated by the counting of the great ocean steamers as twice entering and twice clearing at Port Phillip.

This remark applies equally to Port Adelaide and Albany, and in the last year to Fremantle. If allowance be made on this score, it will be found that Sydney has a larger quantity of shipping than any other Australasian port, and that it is followed by Melbourne, Newcastle, and Port Adelaide. The figures for the years 1881 and 1891 given for Queensland ports, other than Brisbane, include coastal trade, and the quantity of tonnage shown for these years is, therefore, somewhat in excess of the truth. As this table is only intended to show the relative importance of ports, the inter-state shipping of the Commonwealth has not been excluded, but no account has been taken of the purely coastal trade within each state :

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A better idea of the relative importance of the principal ports of the states is obtainable from the trade figures, which are given below for the year 1901 :

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The comparative importance of the ports of the Commonwealth of Australia and New Zealand may be seen by viewing them in connection with the shipping and trade of the chief ports of the United Kingdom, the 1901 figures for which are appended. It will be seen that in aggregate tonnage Melbourne is exceeded only by London, Liverpool, Cardiff, and Newcastle. Sydney comes next on the list, exceeding all other British ports. In value of trade Sydney is exceeded only by London, Liverpool, and Hull. If the Commonwealth of Australia be regarded as one country, however, the comparison is somewhat misleading, as the inter-state trade is included in the returns:

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The yearly movement of tonnage at Melbourne and Sydney far exceeds that of the ports of any other British possession, Hong Kong and Singapore excepted. Two other exceptions might be mentionedGibraltar and Malta; but as these are chiefly ports of call, and the trade is very limited compared with the tonnage, they can scarcely be placed in the same category.

REGISTRATION OF VESSELS.

The number and tonnage of steam and sailing vessels on the registers of each of the six states of the Commonwealth and the colony of New Zealand at the end of 1901 are given below :

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DEFENCE.

THE HE colonists of Australasia have always manifested an objection to the maintenance of a large standing army, and shown a disposition to rely mainly upon the patriotism and valour of the citizens for their own defence; but each state possesses a more or less complete system of fortifications, armed with expensive ordnance which requires a more regular and constant attendance than could well be bestowed by those who devote only a portion of their time to military affairs; hence it has been found advisable to institute in each state small permanent military forces, consisting for the most part of artillery and submarine miners, whose chief duty it is to man the fortifications and keep the valuable armaments therein in a state of efficiency, so as to be ready for any emergency. At the same time, it is expected that they will prove the nucleus for an effective defence force if ever hostilities should unfortunately occur. Under the terms of the Commonwealth Constitution Act, the control of the naval and military defence forces of the states was assumed by the Federal Government in March, 1901. The greater portion of the Australian forces consists of volunteers enrolled under a system of partial payment, which affords a defence force without the disadvantages and expense of a standing army. The men receive payment according to the number of parades and night drills they attend, as compensation for wages lost while absent from their employment for the purpose of receiving military instruction. The remuneration varies in the different states, the New South Wales scale being about £7 8s. per annum for the ordinary land forces, and £8 10s. for the naval forces. There has been a marked tendency in most of the provinces to discourage the services of those who are purely volunteers, as the system was found to work unsatisfactorily, especially in the country districts. In New Zealand alone is the volunteer system the mainstay of defence. The following table shows the strength of the military forces maintained by each state as at 30th June, 1902. The total number of men of military ages (from 20 to 40 years) in Australasia was ascertained at

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