The definite collision took place just before the estimates of the Navy and Army were finally presented. Lord Randolph Churchill insisted upon some reduction and made no secret that he would set his official existence on the issue. Hamilton replied that 50,000l. was the utmost further variation that could be expected at the Admiralty. Smith wrote as follows:—
Private.
December 14, 1886.
My dear R. C.,—I am very sorry to say that the first review of my figures affords no hope whatever of any reductions in W. O. estimates as compared with 1886-7.
We lose 100,000l. of Indian money, and have to meet extra charges for leap year—Volunteers, Reserve, and other automatic increases—which are enough to drive one wild, without entering upon the questions of giving small-arm ammunition and defence.
I shall be able to give you a rough idea of the probable gross estimate on Thursday or Friday, but it will not be a pleasant one.
Yours very sincerely,
W. H. Smith.
And again on the 16th, in a remarkable letter showing that he, too, was prepared to go to extremes:—
Private.