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Lyttelton Times, Volume XXI, Issue 1245, 4 June 1864, Page 4

It is not easy to understand whether the Wellington Independent represents the views of the Wellington public on the subject of Panama or those of Mr. Fox and the Ministry. Sometimes we seem to discover a warm spirit in favour of the Panama contract, supporting the action taken by the Wellington and Canterbury Governments, and seconding the opinions expressed at the public meeting in the Oddfellows' Hall. At other times there is a Ministerial aroma about the articles on this subject, as if the memoran dum of Mr. Fox had infused itself into" the writer's brain, and its spirit, mingled with that of the Steam Company, were oozing out'in spite of his resistance, and against his convictions to the contrary. We do not quarrel with the effect produced. On the contrary, the ends of public criticism are furthered by the double view which the Independent, enables us easily to take first on one Bide and then on the other. We can read its articles to obtain information which shall enlighten without prejudicing us either for or against the contract. For if a partiality towards Wellington interests should in one column suggest an argument in favour of the Panama service, we read on in confidence that it* effect will be undone, and an average of truth produced in our minds by an opposite bias in another column. For purposes of enquiry, therefore, the Independent has its value. to the colony at large. Its value to the province which it represents is not so obvious. We have no right, however, to doubt that the advocacy of both sides by the Independent will have quite as great and as good an effect upon Wellington interests as the difference of opinion between two steamboat proprietors and the rest of the public on the same question has already had.

We should not have ventured to interfere with a public, journalist in the performance of so delicate a task as the maintenance of active impartiality upon the Panama question, were it not that a chance is fortunately presented to us of aiding his undertaking. The desire of supporting both sides vigorously must render very distressing and discovery of an argument in favour of one which cannot be immediately answered or equalled on behalf

of the other. It is to be feared the Independent has at last fallen into this difficulty, and we hasten accordingly to suggest a remedy. In estimating the cost of the proposed Panama service, it is argued that, in addition to the ocean subsidies, a grave item of expense would be incurred in the passage of the Isthmus of Panama, respecting which the evidence of Sir Rowland Hill is quoted as follows: —" Our mails are conveyed across the Isthmus of Suez by the Egyptian Government for a fixed annual payment, which

amounts to not more than 4d per pound weight; whereas the charge by the railway company for crossing the Isthmus of Panama is lid per pound, in addition to which we have to pay the local Government the exorbitant rate of Is an ounce for letters, for the mere privilege of passing through their territory. These charges would add, say 2d to the postage of each newspaper, and 6d to the postage of each half-ounce letter,- or, should the quarter-ounce scale be applied, then 3d for each quarter-ounce letter, making a total charge of 9d; so that there could be no cheap mail by this route, the letters via Panama being all charged as highly as those sent through France."

The memorandum of the Secretary to the Post Office, from which the above passage is quoted, was written six years ago. It is dated the 27th September, 1858. Since then circumstances have altered, and the facts which Sir Eowland Hill advanced cannot any longer be urged. The history of the case contains much that is instructive.

The Panama Eailway was the work in the first instance of an American Company, of which Mr. Aspinwall was and continues to be a leading member. A great part of the capital stock is now held in England. The railway was constructed upon a concession for 49 years from the New Granaclian Government of the territory which it traverses. The neutral character of the isthmus was assured at the same time by a joint .treaty between Great Britain, France, and the United States ; and the Government of New Granada undertook that each of the guaranteeing powers should be placed upon an equally advantageous footing with the rest, or with any other nation, as to the

terms of postage. These terms were, as Sir Eowland Hill states, exorbitantly high, a rate of one shilling per ounce being placed upon letters ; and this rate was for a l ime actually paid. But the United States Government, finding, no doubt, that

the intercourse between the Eastern and Western States, passing for the most part across the Isthmus of Panama, was very seriously taxed by New Granada, found it convenient to raise a question in Central America, the settlement of which required the presence of one or two men of war ; and before the men of war were recalled the transit postage for United States correspondence dropped to a merely nominal figure. The British Post Office continued for some little time to pay to New Granada one shilling per ounce for their letters, but on the attention of the Treasury being drawn to the favour granted to American letters, the Foreign Secretary recalled the promise to treat Great Britain as favourably as any other country. It happened that an Envoy of New Granada was then in England, and saw the arguments of the Foreign Office so strongly that he concluded a treaty reducing the postage rate on British correspondence to about twopence per ounce. When his Go* vernment heard of the arrangement they set an example to New Zealand by repudiating the act of their representative, and disallowed the treaty. Great Britain does not, however, submit to be bullied by any Government much weaker than herself; and the Post Office took the course of sending the correspondence and paying nothing for it, until New Granada should come to a reasonable conclusion. That Government has accordingly begged for some payment to be made, chiefly on the ground of poverty; and it is probable that the British Post Office will consent to pay twopence per ounce, but certainly not more. As to the charges of the Panama Railway, it is only to be said that the threat of competition across the isthmus, and the promise

of an extended concession from the local Government, will incline the Company to make a contract lor the future, if required, on very moderate terms, for the regular carriage of mail matter.