The Daily Telegraph. THURSDAY, FEBRUARY 1, 1883.

Daily Telegraph (Napier), Issue 3606, 1 February 1883, Page 2

The Daily Telegraph. THURSDAY, FEBRUARY 1, 1883.

On the subject of the reiie.val of the San Francisco mail service the _ AVellingtou Evening Post states that it is iv possession of information which that journal believes Avill prove entirely accurate. Under the existing contract the subsidy paid jointly by Ncav Zealand and New South AVales to the Pacific. Mail Company is £72,000 per annum. Of this sum NeAv South AVales contributes £40,000, and New Zealand £.2,000. It A\-as at first hoped than an agreement might be come to for the two colonies to share equally the expense on renewal of the contract. But it avus soon found that the Sydney Government Avould not entertain for a moment any such proposal. Indeed, avc understand that shortly before he went out of office, the ex-Premier, Sir Henry Parkes, stated plainly that in vieAv of the greatly superior advantages derived by Ncav Zealand from the San Francisco service, Noav South AVales ought not to be expected to contribute more than one-third as against NeAv Zealand's twothirds. AYe anticipate that a strenuous effort will be made to persuade the Sydney Government to be satisfied with merely reversing tho terms of the present contract as to respective contributors. That is to say for New Zealand to pay £40,000, and New South AVales £32, 500. There is strong reason, hoAvever, to believe that the present Ministry of Now South AVales Avill adhere firmly to tho vieAVS of their predecessors, and will stoutly refuse to pay more than a third of the total subsidy, or in round numbers, £24,000. That would leave about £48,000 to be supplied by Ncav Zealand, instead of £32,500 as now, or an increase of OA-cr £15,000. It must not, of course, be imagined that this is the cost to the colony. On the contrary, the receipts from postage, kc. iioav furnish more than £27,000 toward the cost, leaving the net expense only about £5000 per annum for this very excellent, punctual, and fairly rapid mail service. If, hoAvever, present expectations as to the action of New South AVales arc borne out, and Ncav Zealand's share of the subsidy is augmented as suggested, the net cost to this colony would be increased to some £20,000. But there is another possibility. A strong feeling has long prevailed in these colonies, and especially in NeAv South AVales, that America does not do her fanshare toward the maintenance of a service from which she derives so large a proportion of the commercial benefit, and by Avhich alone an important and giwing trade is secured to her. It is not at all improbable, therefore, that Ncav South AVales may say: "AYe Avill pay one-third, NeAV Zealand may pay another third, and the United States ought to pay the balance ; let the two Australasian colouies agree to pay the tAVOthirds betAveen them, and let the laciiic Mail Company S et tlie resfc from America. This would be a pertectly fair and equitable arrangement, if only America can be m-. duced to suit in the proper light.

The colony of Victoria has experienced during the past month tAvo great surprises. The first was the failure of the loan; the second has been the dissolution of Parliament. AYe fail to see why the last should have created the slightest surprise, for it Avas the natural sequence of the first. The policy of Sir Bryan O'Loghlen's Administration was a borrowing one. The financial proposal that was submitted was to.provide for the borrowing of £12,000,000, out a of which ..8,000,000 Avas to be set aside for tho redemption of debentures falling dve —about one-half in the present year, and tho

balance before the expiry of 1885. In due: course the new Government met the House, which remained in session until the close of the year 1881, though during the whole of that session' no Government business was transacted''which the country can look back to with satisfaction. Among the bills Avhich figured on the notice paper was one "to authorise the raising of money (£4,000,000) for railways and other purposes." The third reading was agreed to by the Assembly on the 22nd December, 1881, and the bill passed tho LegislatiA-e Council on the 24th December. Yet, notAvithstanding the plea of great urgency ! under which the bill was despatched, no immediate steps were taken toAvards floating the loan. AVhen at last the loan was put upon the market, and less than half a million out of four millions was all that was subscribed, the utmost mortification was felt at the failure. The Age, .vriting on the subject, said:—"AA r e haA-e been so accustomed to look upon the financial reputation of Alctoria as absolutely beyond impeachment, that the merest breath of suspicion is felt Avith the keenness of a personal insult. AVhen avc go to the English capitalist for a loan it is in the character of people who are about to confer a faA-or rather than to ask one, and it is quite a novel experience to find him reluctant instead of being eager to lend us. * * The credit of the colony is too good to let it ask in vain : and the English capitalist has always money to spare for a good inA r estinent. But the question is, 1 AA-ill he take the interest that the Government offers or stand out for more 'i Unfortunately, it is no question at all Avhat the Govenunent must do. . AYe have got into a predicament from which there is no retreat AA'ith honor or safety. AYe want the money and we must have it at any price. Even if we withdraw the present loan, we shall in a very feAV months haA-e to place another of nearly equal amount which Aye cannot withdraw under any circumstances. To withdraAV the present loan is of course to give its quietus to Mr Bent's great bribery bill. It is purely on account of this splendid effort of Conservative genius to corrupt an entire Legislature that avc have got the colony into the terrible discredit under AA'hich it suffers to-day." AVith an angry Parliament tiTicl a riai-row majority tlie Government had no other course to pursue but either to acknoAvledge their errors and resign, or else to ask for a dissolution. They have chosen the latter course.