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Owing to the heaviest snow-storm of the season, the trains during the past ten days were all behind time, but through the exertions of General Superintendent Vail, of the Railway Mail Service, and President Scott, of the Pennsylvania Railway, the train that morning was in time, arriving at 6.30 a.tn , and the mail left New York on board the " Abyssinia," of the Cunard Line, which sailed at 7 o'clock. You should have it in London on Saturday at least, thereby securing its arrival three days ahead of schedule time. From New York to San Francisco the postal officials are all alive to the importance of rapid transit, and, unless some unforeseen accident should occur, I do not think there will be any delay in the future. With best wishes for your personal welfare, I have, &c, Thos. L. James, Sir Daniel Cooper, 20, Princess Gardens, S.W. Postmaster.

No. 17. The Hon. Mr. Ballance to the Agent-General. Sic,— General Post Office, Wellington, 25th April, 1878. I have the honor to acknowledge the receipt of your communication of 25th February last, enclosing copy of a letter from the Postmaster of New York, communicated to you by Sir Daniel Cooper, relative to the exertions displayed by the officers of the United States Postal Department, in their endeavours to accelerate the transit of the Australian and New Zealand mails across the continent. This matter had been previously brought under notice by the Resident Agent for the Colony at San Francisco, and by the last mail Mr. Creighton was requested to convey to the postal authorities the thanks of this Department for their cordial co-operation with the agents of the Pacific Mail Steamship Company in expediting the transit of mails between San Francisco and New York. Messrs. Williams, Blanchard, and Co., the San Francisco Agents for the Company, were also written to in suitable terms, thanking them for their exertions in the matter. I have, &c, J. Ballance, The Agent-General for New Zealand, London. (for the Postmaster-General.)

No. 18. Mr. Lambton to the Seceetaet, General Post Office. Sic,— Sydney, 3rd May, 1878. I have the the honor to forward herewith copies of a letter, and its enclosure, received from Messrs. Gilchrist, Watt, and Co., respecting a charge of $150, for a special train from San Francisco to Sacramento, for the purpose of enabling the mails, which arrived at the former place per s.s. "Australia" on the 17th October last, to overtake the mail train to New York. The Postmaster-General is of opinion that this amount should, under the circumstances, be refunded to the Contractors, and will be glad to know whether the Postmaster-General of New Zealand concurs in this opinion, and, if so, whether your department will pay half the sum in question. I have, &c, S. IT. Lambton, The Secretary, General Post Office, Wellington. Secretary.

Enclosure in No. 18. Messrs. Gilchrist, "Watt, and Co., to the Hon. the Postmaster-Genebal, Sydney. Sic,— Sydney, 18th April, 1878. We have the honor to forward herewith copy of letter received by us from the Commander of s.s. " Australia " (dated 17th inst.), embodying extract from letter addressed to him by Messrs. John Elder and Co., owners of s.s. " Australia." This letter states that, on the occasion of the arrival of the " Australia " at San Francisco on 17th October last, the train for New York had just left, but that the Pacific Mail Company arranged to have the mails forwarded per special train to catch the mail train, which, it appears, they succeeded in doing at Sacramento, and thus saving a considerable time in the transmission. For the cost of this train the steamer has been charged the sum of $150, and we have now the honor to request that the said sum may be refunded to her by the Government, as it was an expense incurred solely in the interests of the public, and not of the steamer, which had already used her best efforts for the speedy delivery of the mails at her port of destination (San Francisco). We have, &c, Gilchkist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Sydney.

Sub-Enclosure to Enclosure in No. 18. Captain Caegill to Messrs. Gilciibist, "Watt, and Co. Gentlemen,— Sydney, 17th April, 1878. I beg to give you the following extract from Messrs. John Elder and Co.'s letter to me, relating to the charge of §150 against the s.s. " Australia " for running mails from San Francisco 2—l\ 4