In 1896, the most pressing need of the Navy was for more officers and men. As already explained, the failure to enter the number required to man the ships of the Naval Defence Act of 1889, had now become manifest. Battleships are a showy asset; the absence of men is not noticed by the public; therefore the politician builds the ships and omits the men. In an address delivered before the Liverpool Chamber of Commerce in July, 1896, I stated that the deficiency in the personnel was 27,562 men, including a deficiency of 5000 in engine-room ratings. A resolution urging the necessity of an immediate increase in the personnel was passed by the Liverpool Chamber of Commerce, and was sent to the First Lord, Mr. Goschen.

The First Lord replied to the resolution, stating that the increase in the personnel since 1889 had been 31,360. These figures, however, included the whole of the numbers borne, without distinction of the numbers available for sea service, and represented the numbers voted, irrespective of deaths or retirements. The true increase was estimated by me, upon the evidence of the Navy Estimates, at 17,262; and the total number required at 105,000.

A good deal of public interest having been aroused on the subject, Mr. Goschen stated in the House that it would be his duty next year "to propose such a number of men for the Navy and Reserves as we judge to be rendered necessary by the extension of the Fleet."

The increase of personnel was provided accordingly. Here is one instance among many, of a responsible statesman declaring in all good faith that matters were perfectly satisfactory as they were; being obliged by the insistence of outside representations to examine requirements; and then discovering that these were in fact what had been represented. Mr. Goschen was necessarily dependent upon the advice of the Sea Lords; but the Sea Lords themselves were immersed in the mass of routine work involved in keeping the machine going. The business of supply and the business of organisation for war were confused together; with the inevitable result that organisation for war was neglected.

The personnel was increased in 1897-8 by 6300 (numbers voted). In the following year, 1898-9, my estimate of 105,000 men was passed, the numbers voted being 106,390; and, excepting intervals of false economy, continued to rise until they now (1913) stand at 146,000.

The proposals with regard to the personnel were supported by (among others) Admiral Sir R. Vesey Hamilton, who, in a letter to The Times of 2nd April, 1897, stated that "an ex-Controller of the Navy said to me when I was at the Admiralty, 'Your building programme is ahead of the manning.' And he was right, more particularly in officers." Sir R. Vesey Hamilton was a Lord Commissioner of the Admiralty from January, 1889, the year of the Naval Defence Act, to September, 1891. His testimony is therefore authoritative. It was, of course, no fault of Sir Vesey Hamilton that the personnel was deficient.

It is not too much to say that owing to the omission from that Act of the requisite increase in the personnel, the Navy has been short of men ever since.

In December, 1896, I suggested in a letter to the Press that promotion to flag-rank should take place at an earlier age in order that officers might gain the necessary experience while still in the vigour of youth. Officers who remain too long in a subordinate position are liable to have the faculty of initiative taken out of them, and to fall into the habit of thinking that things will last their time. The services of old and experienced officers are of course invaluable; but officers should acquire the knowledge of the duties of an admiral (upon whom in modern warfare all depends) as early in life as possible. Progressive pay for all ranks from lieutenants upwards, was also advocated.

The requirements of the time were set forth by me in an article contributed to The Nineteenth Century of February, 1897. Briefly, these were as follows: