Paid reserve 120,000

Special reserve may now be dropped                ---------
Total liable for national war                       669,000

Territorial force 116,512
  Less 5 per cent. 5,825
                                       --------
                                        110,687
  Less 78,750
                                       -------- 31,937
          
                                         --------
          
                                          700,937
          
                                         ========

At the end of ’04 the territorial force would come to an end and in ’05 there would be:—­

(Old regulars, 24,000, after waste just enough
  for drafts.)

New regulars 200,000

Mounted troops, second year 20,000

New reserve 478,000
  Less to paid reserve 20,000
                                    -------- 458,000

Paid reserve                                      120,000
--------
Total, all liable for national war                798,000
========

In these tables I have taken the drafts for India and the Colonies from the old regulars.  But they can just as well be taken from the new regulars.  If need be the old regulars could, before the fourth year, be passed into the paid reserve, and the full contingent of 200,000 one year’s men taken.

The men of the special reserve and territorial force would on the termination of their engagements pass into the second line reserve or Landwehr until the age of thirty-one or thirty-two.

It will be seen that during the years of transition additional expense must be incurred, as, until the change has been completed, some portion of the existing forces must be maintained side by side with the new national army.  It is partly in order to facilitate the operations of the transition period that I have assumed a large addition to the number of officers.  There will also be additional expense caused by the increase of barrack accommodation needed when the establishment is raised from 138,000 privates to 200,000, but this additional accommodation will not be so great as it might at first sight appear, because it is reasonable to suppose that those young men who wish it, and whose parents wish it, will be allowed to live at home instead of in barracks, provided they regularly attend all drills, parades, and classes.