THE PANAMA MAIL CONTRTACT.

Star (Christchurch), Issue 130, 12 October 1868, Page 2

THE PANAMA MAIL CONTRTACT.

<£, The following is the article in the Wellington Independent, Oct. 10, referred to iv our latest telegrams : — The question whether the Panama mail service is to be continued has, since the arrival of Captains Hall ami Blanc, beeti exciting some discussion here. The Panama Co npany have lost heavily by the contract, and would have no objection to cancel it provided that they could secure a quid pro quo for doing so. New South Wales does not at present reap those advantages from the service, postal and commercial, which she anticipated she would do, and would get out of the arrangement if she could. The New Zealand Government is hard pressed for money, and disposed to think that the Pan- m:i service is a luxury that the co'ony might dispense with. Under these adverse circumstances there is great danger that one of the most important enterprises which has been undertaken of late years, and in the success of which this colony ia more especially interested, will be abandoned. There is no use in disguising this ugly fact, and the best thing that Wellington can do will be to look at it boldly in the face. There is no doubt that the Panama Company have up to the present time been great losers by the undertaking ; there is no doubt that as a mere postal service Sydney has not at present reaped those advantages which she fondly expected from it ; and there is no doubt that New Zealand at the present moment can ill afford the large subsidy which she has annually to contribute. We must, however, protest most strongly against any proceedings intended to alter, disturb, or annul the existing contract. As a passenger line the Panama service is fast becoming what its wannest supporters led the public to anticipate. Nor are the commercial adrantages which New Zealand and Australia enjoy from closer and more speedy communication with South America and the United States by means of thisserviee, to be underrated. In both those respects the service promises to be productive of the beneficial results which were predicted from its establishment. As a postal serrice it is of great benefit to this colony, and every year it will become more so. New South Wales cannot withdraw from the contract without the assent of New Zealand, and we feel quite sure that neither will willingly consent to give any compensation to the Company for cancelling a contract which, if they are such heavy losers under it as they represent, they would gladly cancel without any compensation at all. The Company deserve great credit for the enterprise they have exhibited in establishing the service in so efficient a manner, but they will show a lamentable want of it if they abandon an undertaking at the very time there exists every prospect of its proving successful. As for the General Government consenting to cancel the contract, or giving compensation to get this accomplished, the thing is not to be thought of. It would be well if our Chamber of Commerce — if such a bo.ly still exists — spoke out on this matter.