47

D—No. 1

sir h. barkly to sir c. b. lytton. Government Offices, Melbourne, 11th February, 1859. Sir, — Your several Despatches noted in the margin, relative to the lapsing of the late, and the completion of a new Contract for Steam Postal Comir unication with Australia have been laid before the Legislature as they reached me, and as they have elicited no expression of opinion to the confrary, it may be assu ned that the arrangements therein announced are deemed the most satisfactory that could, under the circumstances have b?en made. Objections it is true, on the part of the Mercantile community, to the change of route involved in the Steamers touching at the Mauritius instead of Ceylon, were hinted at, the daily increasing commercial relations of tins Colony with India and China, outweighing those connected with the first named Island, but these objections have not assumed a definite shape. They will no doubt be more loudly urged whenever the Electric Telegraph is carried all the wpy to Galle, since intelligence to this part of the world might then be thence accelerated by fully ten days ; but it is to be hoped that ere that, the Australian Colonies will have advanced sufficiently to fill up the loop between Galle and King George's Sound, by Steamers in connection with the fortnightly despatch of the Indian Mails by the Peninsalar and Oriental Company, so as to secure practically a second line. With regard to the establishment of a second monthly Service via Panama, I am not yet in a position to afford definite information as to the views of the Legislature, and it seems probable that notwithstanding the clear light in which the question is placed by your correspondence with Sir William Denison, the Session will terminate next week without its being adverted to in either House. There is something so Imperial in ihe idea ot thus uniting the British Dominions by means of lines of Steamers circumnavigating the Globe, and it offers at the same time such safeguards to these Colonies against interruption to their communication nith the Mother Country through accident or otherwise, tint I have always been disposed to view the project favorably, and though conscious that obstacles exist to its accomplishment, and that a good deal of experience must be gained before it can be worked smoothly, 1 have given my best support to a line by way of the Pacific, especially since permanence of the es'ablished route through the old World has been placed beyond doubt. During the recent visit to this City, of Air. Henry Sewell of New Zealand, I did all in my power accordingly to enforce the argument he employed with my Advisers, that the contribution, namely, which would be required from this Colony to maintain the two lines (one fourth of theentire estimate or £105,000,) did not greatly exceed what it had already intimated its willingness to devote to the upholding of one (£90,000), and might therefore safely be proposed to Parliament—unfortunately, however, other considerations than those of either practicability or expense are introduced into such discussions by the jealousies prevailing between some of these Colonies, the question becoming in fact not one of Panama versus Suez, so much as of Sydney versus Melbourne ; so that whilst my Ministry decline to moot the subject until the feeling of indignation engendered by the attempt a short time back, of New South Walts to foim a separate Treaty with the Royal Mail < ompany, shall have been appeased by suitable apologies,—the Sydney Ministry complain to their Assembly that mine are adding fuel to the fire, by not even having the courtesy to acknowledge the receipt of their three last communications on the Postal question I Time, it is to be hoped, will soften these asperities. Meanwhile, it is satisfactory to state whatever their issue, that the Legislature of Victoria has in pursuance of the intention already indicated, voted £15,000 in addition to the £75,000, specially appropriated by 18 Victoria, No. 31, and 19 Victoria, No. 10, for the Steam Postal Service, so as to make good whatever happens the moiety of tl c subsidy of £ 180,000 guaranteed by the Australian Colonies to the Mother Country. The probability however, of all tbeother Colonies repudiating their liability to the Suez Contract seems so small, that the Postmaster General has subsequently obtained leave of the House, to defray temporarily out of this extra Grant, the sum (£6000) promised by this Government towards a Steam Postal Service between Melbourne aid Wellington, recently established with a view of improving the Communication with the New Zealand Provinces, bordering on Cook's Straits, the Trade with which is gradually growing into importance. I will only add that, in accordance with the Treasury Minute enclosed in your Despatch of 16th November, No. 41, to Sir William Denison, the sum of £74,033 10s. 4d. has been duly p id over by my Treasurer, to the Deputy Commissary General here, for the Victoria proportion of ascertained expenditure to 30th September last, under the expired Contract ; and the balance is forthcoming, whenever the further liability up to the that Contract can be correctly calculated ; trn which occasion, I presume a more formal account will be rendered to each Colony, to serve as a voucher for payment of the demand in full by its Government. I have, &C, (Signed) Hi NRY BarßLy. The Right Honorable Sir E. B. Lytion, Bt., &<?., &-c, eve. P S.—(l4th February, 1*59). I enclose th:.' Duplicate receipt of the Deputy Commissary General, and in so doing, beg to call attention to the accompanying letter from the under Treasurer, pointing out a discrepancy of 10.000 letters in the numbers stated to be chargeable to this Colony in the account furnished. (-'igncd) 11. B.

(Enclosure). No. i». Circulars— llilh June, l&'il KHh Aug., " !)lh Sept., •' 16lh Oct., •• 10lh Nov., "