Poverty Bay Herald. PUBLISHED EVERY EVENING

Poverty Bay Herald, Volume XVI, Issue 5571, 17 September 1889, Page 2

Poverty Bay Herald. PUBLISHED EVERY EVENING

GISBORNE, TUESDAY, SEPTEMBER 17, 1839.

SAN FRANCISCO MAIL SERVICE. Last year the House resolved that at the termination of the present contract there should be a cessation of the subsidy to the Ciiliforuian Mail service, but last week the House by a large majority reversed that decision. Therefore, many members who twelve months ago voted for the abolition of the service, on Thursday must have supported its continuance. In the meantime, there has been no fresh development showing the usefulness of the 'Frisco route. There has been no increase in trade between New Zealand and the United States, nor anything pointing to an increase. On tho contrary, the service has helped to bring California into competition with this colony in the Sydney ma.-ket. During the discussion last week tliis aspect of the case was brought prominently forward by those members who were opposed to tne renewal of tho subsidy. It would certainly be a piece of rank folly for New Zealand to keep afloat a service that would enable the grain growers of California to compete in the Australian market with the agriculturists of Canterbury and Otago. But the Premier completely disposed of this objection by stating that the Government of New South Wales had already determined upon the continuance of the service. If £Jew Zealand did not .subscribe a single penny, the Pacific Mail Service would be maintained between Australia and California. Probably, the drought and consequent failure of the crops in New South Wales exercised considerable influence in moving the Legislature of that colony in the resolve to keep up communication with the United States. There is no doubt that importations from California a few months ago lowered the price of breadstuffs in the Sydney markets. There is another matter which was suro not to be lost sight of in New South Wales. California is a large customer for Newcastle coals. The fact is, that commercially New South Wales is far more interested than New Zealand in the maintenance of the service. So long us New Zealand paid the lion's share of the subsidy, Sydney professed to be little concerned. The resolution of the New Zealand House of Representatives for the withdrawal of the subsidy quickened the Sydney pulse, and the determination to continue the service is the result. It is a pity that New Zealand did not take a firm stand in the matter years ago. The present subsidy, with bonus, amounts to L 20,000 per annum. The resolution passed last week provides for a payment not exceeding L 11,250. The Ocean Mail Service last year involved a locs of L 6700. A profit of L 5700 is expected under the new arrangements — a difference of over Ll2,oooayear to the revenue. That is the outcome of the stand taken by Parliament last year.