D—No. 2

The alteration thus authorized by the Imperial Government and assented to by the Australian Colonies, or the majority of them, is injurious to New Zealand, in the proportion of its greater distance from Southampton by the route of the existing service. A correspondence has arisen upon this point and others of a similar character, but the questions at issue are not finally settled. During the year 1861 some changes occurred in the Steam Postal Service of the Colony ; and since the expiration of the year some further modifications and additions have been made. The Mail Service between Lyttelton, Port Chalmers and Melbourne, performed by the Intercolonial Royal Mail Steam Packet Company from the beginning of 1861, under contract with the Provinces of Canterbury and Otago, at a subsidy of £3500 per annum, was brought to a sudden close by the untimely loss of the steamer Victory in July of that year. As the discovery of a richly paying gold field in Otago was announced precisely at this time, and a large population consequently began to pour in from the Colony of Victoria, the demands of commerce alone caused constant steam communication between Port Chalmers and Melbourne. In order to secure the speedy arrival of the monthly European Mail, the Provincial Government of Otago, in the month of November, 1861, entered into a contract with steamship proprietors in Melbourne for the despatch of a packet from that port for Port Chalmers about the stated time of arrival of the P. and O. Company's contract boat from Point de Galle. By this means the inward Otago Mails have since that time been regularly transmitted. An extension of the service to Lyttelton was quickly contracted for by the Provincial Government of Canterbury and continues to be carried out. The united subsidy for one boat thus employed is at the rate of £400 per month. During this period, and until the month of April last, the arrangement of the service performed by the Inter-colonial Steam Packet Company received no modification of importance. Two boats were occupied in performing a monthly trip from Sydney to Nelson, Wellington, Lyttelton and Port Chalmers, and back; and a third boat was employed upon the coast of the ColoDy between Manukau and Port Chalmers. At one time, an attempt was made to convey the European monthly Mail to Auckland from Sydney by sailing vessels ; but though the experiment, so far as it was carried out, was not altogether unsuccessful, the risk of occasional delay was deemed too great, and the Mail continued to be carried both ways between Sydney and Auckland by steam by way of Nelson and Manukau. The position of the several Provinces of the Colony during the greater part of the year 1361, in relation to the means and time of receiving and despatching the European Mail, may best be understood from the following tabular statement: —

Inter-colonial Posts.

Comparative rosiliod of the Provinces.

INWARDS.

5

THE POSTAL SERVICE OF NEW ZEALAND.

PROVINCE. ROUTE OP MAIL. NO. OF DATS FROM MELBOURNE. Otago Southland Canterbury Nelson Wellington Marlborough Taranaki • Auckland Hawkes Bay From Melbourne direct By Branch Boat from Otago (about) From Melbourne via Otago " Sydney direct " " da Nelson 8 10 10 14 16 Ifl 16 17 18 By Branch Boat from Nelson II <£ Cl « " from Wellington HOMEWARDS. PROVINCE. ROUTE OF MAIL. NO. OF DATS TO MELBOURNE. Nelson Taranaki Auckland Marlborough Wellington Canterbury Otago Southland Hawkes Bay To Sydney direct By Branch Boat to Nelson 14 16 17 17 17 19 21 23 24 << it c< To Sydney via Nelson (i II N U a a By Branch Boat to Otago (about; " " Wellington The routes and dates assigr were arranged locally ; the Gc services, uad assumed no control led to the Provinces of Hawkes Eay, Marlbori svernment of the Colony did not contribute t< over them. iugh and Southland i tke expense of the