The Lyttelton Times THURSDAY, DECEMBER 10, 1868.

Lyttelton Times, Volume XXX, Issue 2486, 10 December 1868, Page 2

The Lyttelton Times THURSDAY, DECEMBER 10, 1868.

It is scarcely uiore tlian two years since tflQ Panama mail service was opened at "Wellington with unbounded rejoicings. An Mr Stafford explained in his speech on that occasion, the subject of a mail service via Panama had engaged the attention of the New Zealand Government as early as 1857, The effort to induce the Imperial GoTernment to assist the scheme failed at that time, and ever since. England steadily refused to grant a single farthing in aid of the enterprise. But the purpose of the people of Mew Seuth Wales and New Zealand never flagged. One difficulty after another was overcome, (ill at length, with the aid of Mr Weld's Government, the late Mr Crosbie Ward had the satisfaction of completing a contract with the present Company for carrying on the service. The chief events connected with the settlement of this great undertaking will be fresh in the memory of moat of our readers. Notably among others, that Canterbury offered to guarantee £63,000 a year to the Company when the project seemed pkely to fall through. This fact alone go -

seems to demonstrate most clearly the change that lias taken place in the circumstances of the colony during the past three years, and will help to explain why the undertaking has turned out a failure. When Canterbury boldly offered to guaranteed amount it was able to pay it, and believed that it could reasonably guarantee tho money for a Bred period. But times have altered,;not only with Canterbury but with the whole colony. Hence much of the loss and disappointment which have ensued in this case. t After the news of the late meeting in London, backed up by the telegrams Irom Sydney announcing the sale or seizure of three of the Company's steamers, we suppose it must be recogmsed that the Panama Company is mi eastern. The fact will be admitted with profound regret throughout the colony. Not only because we must all feel grieved to think that a scheme which cost so much energy and labour has partially failed, but because the hopes of those who believed that a new era of prosperity had dawned upon the colony have been prematurely blighted. Nor will the Company itself fail to receive its share of sympathy. Everyone must regret that the shareholders who invested their money in this enterprise have been such heavy sufferers. For the conduct of the Company has been of a character to I merit every praise from the beginning to the end of their connection with the colony. The eulogiums passed upon the Directors by the late Mr "Ward, for their conduct during the negotiation of the contracture equally applicable to the subsequent career of the Company. In all its relations with the Government and people of the Colony, it has maintained a high character for honest, punctual, and liberal dealing. It appears as if an effort would still be made by the Company to carry on the contract. We are sure that every one will hope that it may be successful, and that the enterprise may yet prove remunerative. But it is obvious that the prospects are not encouraging. Even if the colony were in a prosperous condition, it is very doubtful whether the Legislature would consent to any addition being made to the subsidy already granted. In our present financial condition the idea is simply preposterous. With a war of uncertain duration upon its bands, which is costing at the rate of half-a-million a-year, with a failing revenue, and with the certainty of having to impose additional taxation, it is out of the question to imagine that any Government would dream of proposing to increase the postal expenditure. And, until the colony emerges from its present difficulties, there can be but faint expectation of any permanent increase in the passenger traffic Though the latter difficulty is one which time would overcome, if only the Company can afford to wait. The result we now deplore appears to be attributable chiefly to the length of the through voyage, and the absence of ports of call on the way to act as feeders to the passenger traffic. The limited population of these colonies is insufficient in itself to support a through line of steamers to England. The hopes which were entertained of a large traffic between the South American ports and Australasia have not been realised. The people of America do not trade with us to any extent, and are not led otherwise to visit us. Europe naturally attracts all those who travel for pleasure. Again, it cannot be doubted that the outbreak of yellow fever at the commencement of its career materially damaged the .'prospects of the Company. The dread of this fell disease must have deterred many from travelling by this route. Altogether, the Company has been singularly unfortunate, and it is difficult to see how its misfortunes can be alleviated. New Zealand certainly owes it a debt of gratitude, if only for having proved that the Pacific passage can be easily and safely accomplished by steam. But we fear that New Zealand has nothing but sympathy to give, and that will not take up an overdue acceptance or help to pay a dividend.