THE PANAMA SERVICE.

Otago Witness, Issue 567, 11 October 1862, Page 2

THE PANAMA SERVICE.

(From the Daily Times, October 6.) The arrival of the Postmaster-General in the Province affords the most opportune means of communicating with him in respect to the Panama service. We have reason to think that the plan suggested by Mr. Cargill of an arrangement between the Provincial and General Governments is not so impracticable as we at first sight supposed. On the contrary, we believe Mr. Ward is inclined to favorably the same, and that an arrangement may be arrived at "which would mutually suit tlie purposes of both Governments. A short review of the respective positions in which they stand in regard to the scheme will illustrate our meaning. At the late session, the House of Representatives passed a bill appropriating, for a term of years, a sum of L 30,000 per annum, as a subsidy for a line of steamers from Panama. The sum named was considered to be far less than was required ; the remainder, ifc was anticipated, would be made up by subsidies from the other colonies. In the meanwhile, an intimation has been made to the Government of Otago, from which there is good reason to suppose that a line of steamers can be put on to that Province, at a far less cost than it was contemplated by the passers of the bill would be required for the service to New Zealand, The feeling in Otajro is in favor of responding

favorably to the offer, and the Chamber of Commerce, representing the commercial community, has already expressed a strong opinion to that effect— of course one of the conditions to be, that in accordance with the desire of the would-be contractors, Otago be made

the terminal j)ort

Be} r ond this condition there is nothing in the contract which Otago desires to enter into which should in any way differ with the one which the General Government, in accordance with the vote of the Legislature, has it in charge to make. Supposing that Mr. Ward, on vv horn we will assume devolves the giving effect to the Panama service bill, has no feeling in favor of one Province over another, he Mill, in negotiating the contract, have regard to the interest of the colony as a whole, and if, as as can be shown, Otago is the cheapest port, there is nothing in the selection to which he should take exception. To Otago then, it is important to be selected as the terminal port — to Mr. AVard we are justified in supposing it to be a matter of indifference. But as we have said, beyond the stipulation concerning the terminal port, Otago is entirely at one with the General Government. In regard to every other condition, it is the interest of the Province to make the service entirely to the satisfaction ot the rest of the colony, and- that of tbe neigh boring colonies. As far then as Otago in concerned, there is nothing to prevent the PostmasterGeneral negotiating the contract on its behalf, providing he will agree to be bound by the stipulation mentioned. On the contrary, the Postmaster-General could make the contract more efficiently than the Provincial Government, because the neighbouring colonial governments would be more willing to correspond with him in regard to their proportion of tbe expense, and the Home authorities also would be more willing to communicate regardin. the conveyance of the mails to the Eastern side of the Isthmus.

Thus we find Mr. Ward has, to use a rather inelegant expression, " two strings to his bow." The money placed at his command by the legislature is not sufficient to negotiate for the service; he must look elsewhere for an additional subsidy. New South Wales, no doubt, wo'ild be willing to aid him : so is Otago. Let us now consider the relative advantages offered by each. If he ask New South Wales' assistance, of course the contract would have to embrace the carriage of letters to New South Wales. This means an additional cost added on to the contract of some £10,000 a-year. Again, New South Wales, jealous of Victoria, and desiring that that colony should receive its letters by_way of Sydney, would stipulate for Auckland or Wellington being made' the port and that the steamers should proceed on without delay. But the contractors ask an addition of' £5,000 or £6,000 if any port but Otago be chorai as the place of call in New Zealand, so that this, added on to the cost of the extra service to Sydney, would make the contract £15,000 a year more than one to Otago would cost. Whatever subsidy New Zealand and New South Wales may respectively agree to guarantee, it would have to be arranged that the payments should be made proportionately to the use made,' not only by those two colonies but by the other colonies, of the service. In fact there would be an ad ju'stment similar to that which exists with the Overland mail. But the service to Sydney will cost L 15,000 more than that to dtao-o ; consequently New Zealand would be contributits proportion to the extra and unnecessary L 15,000. Again, if the service be by way of New South Wales it is very certain Melboilrne would make less use of it. To run a steamer direct to Wellington or Auckland would cost an enormous subsidy, aud there would be a natural disinclination to write by way of Sydney. New Zealand's proportion of 'the contract would, therefore, be -increased by the diminution of the Melbourne contribution. On the other hand, if Otago b e the terminal port, not only wonld tho cost to the colony be less; not only would the Melbourne contribution be larger ; but both Melbourne and Sydney would have to lay on a line of steamers at their own expense to carry to and fro their mails for and from the Panama boats. And here we should remark, and Mr. Ward cannot too strongly remember this, that it is not a choice between the different provinces as to which shall be the terminal point, but the question is whether New Zealand shall be the terminus at all, or one of the neighbouring colonies. When New South Wales was as\-ed to contribute to the Overland Mail Service, it made it a sine gun non that the steamers should proceed to Sydney. Victoria hesitated to take the responsibility of the entire subsidy on itself, and at, we believe, a large extra cost, the boats go on to Sydney. We may be sure if Mr. Ward asks the assistance of New South Wales, a similar demand will be made. The boats will only be allowed to call, at a New Zealand port; New South Wales will be the terminus. Mr. Ward, then, unless he accept the assistance of Otago, will not be able to have New Zealand made the terminus of the service; and we put it to him whether, sooner than the selection should fall on Otago, he would be justified in depriving New Zealand altogether of the advantage of being made • the terminus ? To sum up, then, it appears that by Mr. Ward electing to seek the assistance of the Otago Government the contract will be secured for a much less sum ; that this will be further reduced by Melbourne contributions ; that the colony will gain the advantage of having steamers from Sydney and Melbourne free of erst; and that it will be made the terminal colony of the Panama Service, whereas, otherwise, New South Wales would secure that advantage. Now let US' see, supposing the rostmasterGeneral elects to act with Otago in what way a mutual arrangement can be made. In the first place it would be the best plan for Mr. Ward to proceed' to South America to personally arrange the, contract, armed with a sufficient command of money.. He has £$0,000 already at his disposal, and he should decide what further sum would be necessary. The offer already referred to speaks of from £50,000 to^fifijOOO, It would be desirable that] he should .have some margin over this, so that he niigtit exercise , a, discretionary powder in^case^ a' larger amount were required 'than the, offer seema to indicate. On ' this subject ,'Mr.}' jW/ird ' should ~be consulted, and, whatever the. amount decided on, the Pro-

vincial Council could pass the appropriation for the same tefm of years as the General Government. Armed with these powers Mr. Ward would have no difficulty in completing the arrangement. The Provincial subsidy would, of course, be made to depend upon Otago being selected as the terminus, and a rebate would be allowed for the contributions from the other Colonies. If the Provincial Government would undertake to introduce an Ordinance for the purpose in the coming session, Mr. Ward would no doubt be satisfied, and i:i the meanwhile woul 1 not open negotiations with New South Wales, and we trust that before Mr. Ward leaves for the North the matter will be placed on this basis.