THE Grey River Argus. PUBLISHED DAILY. FRIDAY, MARCH 8, 1872.

Grey River Argus, Volume XII, Issue 1127, 8 March 1872, Page 2

THE Grey River Argus. PUBLISHED DAILY. FRIDAY, MARCH 8, 1872.

At the present time, while the Hon. Mr Yogel is visiting New South Wales and Victoria, in order to induce the Governments of these Colonies to assist New Zealand in subsidising the San Francisco Mail Service, a controversy is raging in this Colony as to the desirability of continuing the service ; in fact, the question is being plainly put, Is it worth the money ? The general opinion at first appered to be that it was a fine thing for the Colony. But this opinion was expressed chiefly in the first flush of the excitement caused by the arrival at most of the ports in the Colony of large Ame-rican-built steamers, novelties in their way. But after a few visits the novelty died out, and not a few grumblers began to discover that the Colony had bought a white elephant when it spent large sums of money in order that large empty steamers might visit the ports periodically, carrying a few packages of cargo, and destroying the coasting trade of the local steamers by taking away all their passenger traffic. The steamer which arrived at Auckland from San Francisco only the other day had only a few packages of cargo on board, and the opponents of the line point to this as sufficient cause for cancelling the contract. Bat they appear to forget that when the Nevada last left Auckland on her cutward trip that she was full of New Zealand and Australian produce, and had actually to refuse an additional shipment of flax which was offered her at Auckland. What the promoters of this line of steamers had in view was not only the expedltiuiis delivery of the mails between England and this Colony, but also the opening up of a new market for the produce of the Colony, which is practically unlimited in its extent. In this they have been successful, and the steady manner in which the exports by this line have increased within the last few months is the best proof that the maintenance and extension of the San Francisco line will prove of immense benefit to this Colony j and there is no doubt that in time these large return cargoes will have their own commercial effect upon our American cousins, and induce them to give more attention lhan they have hitherto done to the field for "trade" which is now open to them here. We believe that quite recently American purchases of wool have been made in Canterbury and Otago to the extent of over L 50,000, whilst both in Melbourne and Sydney equally heavy purchases have been made. The New Zealand hemp is also making its way in American consumption, and it may reasonably be expected that a very considerable direct trade in this article will spring up to the mutual profit and advantage of manufacturer and purchaser. The American demand for wool has had a sensible effect upon the prices of this staple, and has opened, a very desirable means for enabling the grower to sell his wool at first hard wi+hout the risks ?Jid costs entailed by the usual system of shipment to England. Although the sale of wool in England or America is of very little interest to the ' residents on the West Coast, yet it most materially affects the interests of the Colony at large, as most of the Provinces are more or less dependent upon' this staple for their seasons of prosperity or adversity. The high prices which have recently been reached in the Home markets for wool have had their direct and indirect advantages, both on the eastern and western shores of New Zealand, and we feel assured that when the direct trade is properly opened up between this Colony and America, without the intervention of English buyers and sellers, these advantages will be enormously increased. Even in Sydney the recent visits of the steamers in the San FrancisGO line has had an enormous effect for good. It is said by a reliable authority that recently, in that city an advance of fully a. penny per pound on wool has been due to American operations, and the trade appears to be extending. And should any tariff concessions be made by the TJuited States Government, we may anticipate a great expansion, of our commercial relations with America. The' creation of a new market for our colonial produce has a greater effect than merely increasing the profits of our wool growers .and flax producers. Its results will be the increased value of property, and the greater general stability of our commerce. The /Sydney Morning Herald justly considered one of the most influential and trustworthy journals iri Australia, is not slow to rei cognise the value of the San Francisuo I mail service. A recent article on this j subject contains the following remarks, which are worthy of being carefully considered by tho3e who, jLn their objections to the existing contract, appear to lose sight of its collateral advantages. Our Sydney contemporary observes: — "To the surprise of most people, the steamers have brought us down wool-buyers and wool orders to an unprecedented extent — so much so that one authority has calculated the effect to be equal to an advance of a penny a pound. Of course, other contemporary circumstances have conspired to bring about this result, but still the direct steam communication has greatly facilitated its development. It has brought the wool-buyers of San Francisco, New York, and Boston into more direct intercourse with the wool merchants of Australia, and a trade beneficial to both is the result. There is a basis for liiternatwnal traffic in the fact that America d<J©g nojt produce what Australia does. There is plenty of wool grown in the United States, but it is mainly of a coarse quality. Nowhere in the vast domains of the Republic has there been found any climate or herbage

where the fine Australian wool can be produced, and as the American manufacturers require a certain proportion of this wool, they 1 must either buy it at the London sales or have it shipped direct from Australian ports. Of course it cannot be positively asserted that if the steam communication now established were suddenly suspended, the trade that it lias drawn would suddenly drop. But it might, and probably would, be diminished, and its extension be checked. It is obviously desirable, therefore, in the interests of commerce, that a communication which has been found so profitable should be kept up."