THE Grey River Argus. PUBLISHED DAILY. FRIDAY, MARCH 15, 1872.

Grey River Argus, Volume XII, Issue 1133, 15 March 1872, Page 2

THE Grey River Argus. PUBLISHED DAILY. FRIDAY, MARCH 15, 1872.

Only the other day we referred to the visit of Messrs Yogel and Webb to Sydney and Melbourne, for the purpose of endeavoring to obtain from the Governments of New South Wales and Victoria subsidies for the San Francisco Mail Service. Since then, the papers to hand by the last mail inform U3 of the nature of the negotiations carried on by these gentlemen with the Victorian Government, and it is satisfactory to find that, although the propositions at first submitted were rejected, there was still a probability that Victoria would join in the maintenance of the service. It appears that the only condition upon which this is likely to be done, is that Melbourne should be the terminus of the line ; and, looking calmly at the question, when we consider that New Zealand, single-handed, cannot possibly continue paying the whole of the colonial subsidy required for the service, we think it would be ill-advised conduct on the part of Mr Yogel to object too strongly to the demand, more especially when it was he who only lately offered the same line of steamers the privilege of making Melbourne their terminus for four months without subsidy, and without request on the part of the Victorian Government. It appears the first demand Mr Yogel made upon the Victorian Government was for an annual subsidy of .£25,000, arid this without the terminus being at Melbourne, but this was rejected on the ground that it was too much, and that in the event of any subsidy whatever being paid Melbourne must be the terminus of the. line of the American steamers. When the negotiations had reached this stage the Anjxis of the 29th February said :— " The Hon. "Julius Yogel will have another interview with the Chief Secretary this morning on the subject of the New Zealand mail service via San Francisco, but unless he very much modifies his propositions, his mission will be a useless one. He asks this Colony to pay a subsidy of £25,000 per annum, whilst New Zealand herself, to whom the service is of the most value by far, would only pay £35,000. She would also be the terminus of the line, the Victorian service being only a branch, and carried on by intercolonial steamers, or, in other words, Victoria is asked to pay £25,000 for a mere branch service. What Mr Yogel asks for Mr Hall's company offered to perform for and for the company offered to make Melbourne the terminus. We believe we are correct in stating that the Government will entertain no proposition that does not provide for the American steamers coming right through to Melbourne." The journal we have quoted was perfectly correct in its anticipations' of the course of conduct Mr Yogel would adopt under the circumstances. At a later interview, we are told, he very much modified his demands, but to what extent had not transpired, and the terms had still to be considered by the Victorian Cabinet when the mail left. We are inclined to think that Mr Yogel will forego a large portion of the subsidy asked, and also agree that the American steamers shall go on to Sydney and Melbourne, as he is quite well aware that they are not wanted to run round the coast of New Zealand, as thereby they only in jure the coasting trade, which at the present is mostly done by local companies. There are plenty of coasting steamers on both the New Zealand coasts to meet all possible demands, and the coastal mail service cDuld be as well and more easily done by them than by the large American boats, which would be better employed doing the ocean service between Auckland, Sydney, and Melbourne. The mails would be delivered quite as expeditiously at all the ports of New Zealand, and the Colony would most probably be relieved of the burden of about £20,000 per annum by foregoing its feeling of vanity engendered by periodical visits at insignificant ports from large American vessels. So far as the negotiations have gone, the feelings of the Victorian people appear to be in favor of subsidising the San Francisco line to a moderate amount, and there is little doubt that some favorable arrangement will be arrived at, especially when we find the

following remarks in the Argus : — " We ! are glad to find that although the terms offered by Mr Yogel have been very properly rejected by the Chief Secretarj, the negotiations are not closed. At the present time, when the disposition of President Grant' and the American Government is favorable to the promotion of communication between the United States and these colonies, it would be as well to be not over nice in estimaforig the assistance to be given by Victoria. As we have said before, there is every reason to believe that the tendency in America is to the relaxation of the protective system and the encouragement of commerce, and very likely we in this Colony may condescend to take a lesson from that quarter, even if we refuse to be guided by the example and counsels of the mother country. We must not forget, too, that England has consented to a considerable sacrifice both of position and money to secure the advantage of a cordial understanding with the United States. We do not wish to overrate the advantages of the Californian route, or to allow seutiment to enter in too great a degree into our calculations, still we think that fey» public men of the calibre of Messrs Bufly and Yogel should be able to come to an arrangement in this matter, that, without any unnecessary sacrifice of the interests of the colonies which they represent, would secure to both the advantages of communication with the United States."