THE SAN FRANCISCO MAIL SERVICE.

New Zealand Herald, Volume XXVII, Issue 8268, 29 May 1890, Page 5

THE SAN FRANCISCO MAIL SERVICE.

[by TEI.KORAPH.— OWN CORRESPONDENT.] Wellington, Wednesday. In reference to the subsidy proposed to be awarded by the United States Government to this service, the Postmaster-General, the Hon. Mr. Mitchelson, tells me that the correct figures are " £34,000 for a fourweekly service and £68,000 for a fortnightly service, the contract to be for ten years. The subject engrossed a good deal of the conversation that to-day pervades political circles here. Although it was mentioned more than a week ago, that in all probability u Bill for this purpose would be brought into Congress, the communication of Mr. Creighton creates rather a surprise, It was certainly unexpected. It was believed that the United States Government, being master of the situation, would observe a masterly inactivity. Those who see farther, look to the Samoan question treaty, to the development of American trade in the ■ islands of the Pacific, as the true touchstone of the indicated policy of the United States in the matter. Neither New Zealand wool, nor grain hopes to benefit by this outburst of American liberality, but there is no use in counting our hopes and expectations. The liberality is liable to be greatly discounted during the progress of the bill. But for New Zealand flax, the prospects are more certain. The Post this evening publishes a long letter from a correspondent in San Francisco. As I happen to know who that correspondent is, and know his great opportunities for obtaining the best information obtainable on the subject, I forward you an extract from ids letter as follows :—" It should interest avery one in New Zealand to know that phormium ttnax will be admitted free of duty, should the tariff bill pas*, and as the fibre schedule is unopposed there is little to be dreaded.; The fight on wool, sugar, and hides will not extend to fibres, which do not come into competition with American products. The present duty on hemp is 25 dollars (£5) per ton of 20001bs. A remission of this duty will be a substantial gain to the flax industry. But if the American market is to be lield by New Zealand flax it must be well and honestly cleaned and baled. The small Auckland bales are preferred. They are easily handled, and packed as cargo \ better than the larger bales usually shipped from Southern ports. The difference is an important one to shippers. By measurement three dumped bales equal one ton, i but in reality, owing to the difficulty in stowing a groat deal of space is wasted, and two bale? may be taken as occupying one ton of space. This applies to cars as well as ships. Someone must pay for this space, and naturally it is the shipper. As flax is destined to become a leading export, because a special product of New Zealand, the point in question is very important. The lower the freight the more money is paid to the producer. Slovenly or careless baling, therefore, will cost more to the mills than if the work were put up in small compressed bales in the first instance and shipped in that shape, because the cost of transportation and handling is always taken into account in fixing the price of any commodity. These details should nob be overlooked, inasmuch as phormium tenax will be brought into free competition with hemp, jute, sisal, grass, and all other grasses and fibrous vegetable substances in the American market: it must stand or fall upon its own merits. A good deal must be attributed to the fact that half-dressed and inferior flax was shipped abroad. There is a practically unlimited market for New Zealand flax in the United States, and preparations should be made to meet the demand."