The Globe. WEDNESDAY, JANUARY 3, 1877.

Globe, Volume VII, Issue 791, 3 January 1877, Page 2

The Globe. WEDNESDAY, JANUARY 3, 1877.

It is admitted on all hands that a reliable means of telegraphic communication with Europe is becoming more and more a necessity to these colonies, not only from a commercial point of view, but also from a political and national one. Our merchants are daily finding out the value of being able to communicate at once with the great centres of production at home; and in the present disturbed state of Europe it is of vital importance to us in these colonies that the earliest information should be communicated of any danger through war. Present arrangements do not satisfy these requirements. During the last month or two, when war might have been declared at any moment, continual interruptions in the cable were taking place. Nor does there appear to be any remedy. No sooner is communication restored in one part of the line, than it is broken elsewhere. It is therefore proposed to duplicate the present line, and various plans have been placed before the Australian Governments with that object. It is not our intention to discuss the various routes, but rather to direct attention to some remarks of the Argus as to the question of capital which is involved. Our contemporary brings this matter under the notice of the various Governments in order that when their representatives attend the proposed conference, they may be able to speak authoritavely on the point. He proposes a new mode of subsidising a second line. The Eastern Extension, Australia, and China Telegraph Company offer to lay a second line, but they require a subsidy of 6 per cent on the amount invested in a second cable. They require this, our concontemporary remarks, because the present line has not sufficient work to do, and the duplication would only be undertaken to guard against the danger to which these colonies are now exposed by being cut off at any moment from [communication with the outer world. In such circumstances the Company could not be expected to lay such a line without assistance. It is evident that the colonies can only enjoy the advantages of rapid and reliable cable communication, at a large cost, and it becomes a matter of importance to us how is the money most cheaply to be found P A subsidy has hitherto been the form proposed. But our contemporary has a different plan. After pointing out that the colonies would have to give not only 6 per cent, but would in addition have to give 3 per cent to be laid by as a reserve to pay for any necessary repairs and provide a sum for replacing the cable when worn out, our contemporary goes on to say: —“Now, seeing that we can borrow at considerably less than 6 per cent, would it not be advisable, instead of paying that rate to the company, to lend the capital needed, and while investing 3 per cent, in a sinking fund for the purposes mentioned, to stipulate that any sum remaining over and above the amount expended on repairs and replacements, when necessary, should be divided rateably amongst the contributors P Under such conditions the company would be relieved entirely from risk, while it would have the extra revenue arising from a continuous service, instead of an intermittent one, to repay it for the trouble of working and superintendence. It appears to us that in this way the colonies, with anything like good luck, might save something like £BOOO or £9OOO a year, or even more. This is an important point, and we think, without committing ourselves definitely to the idea, it is one that should receive careful attention.” The above proposal is worthy of consideration, and we hope to see it discussed at the coming Conference.