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1879, and a supplemental one which, for convenience, I had printed and attached here. My supplemental memorandum and the letter accompanying bring the subject-matter up to date I have written separate letters to the following: Whitelaw Reid, editor New York Tribune; Thomas Connery, editor New York Herald; John Kiley, Chairman Pacific Mail Company; Colonel McClure, editor Times, Philadelphia; editor Boston Advertiser; Joseph Medill, editor Chicago Tribune ; Brill and Co., engineers, Philadelphia; Baldwin Manufacturing Company, Philadelphia; J. Stevenson and Co., New York. In each case I wrote a special letter, of which that to Mr. Money is the basis, varying each according to the special circumstances of the case. Several I wrote myself, others I dictated to an amanuensis, who also made copies of my memorandum of which I sent you the original. In the case of the newspapers, I made the point of American commerce, and the profit accruing from the Australian and New Zealand trade, as compared with the China, West Indian, Brazilian, and Mexican trade. I also urged the homogeneity of the races, the danger of stopping the travel from Australia, and the great inconvenience which would be caused by an interruption and detention in the present mail service I think, if I had been authorized to go to Washington this winter, that I could have had all the concession we wanted As you know, I have put myself to a great deal of inconvenience and labour in this matter, and I do not at all regret it, although it has interfered seriously with my private business without any advantage whatever I have, &c, W. Gray, Esq., Secretary, Post Office, Wellington. Eobebt J. Ckeiqhton.

Enclosure 1 in No. 20. Mr. Creightoit to the Hon. M. De Soto Money. Sic, — San Francisco, 15th December, 1879. I mail to your address fifty copies of my memorandum, which. I would feel obliged if you caused to be distributed among Senators and Congressmen to the best advantage. I can forward more if you desire it. You will find in my supplemental memorandum several important facts; and, that you may feel satisfied regarding my position in it, I forward you the draft contract between the Peninsular and Oriental Company and Victorian Government, with covering correspondence, issued by the Queen's Printers, London. The last mail from the colonies brings Australian newspapers, in which it is taken for granted that the Pacific Mail Service will not be renewed, owing to the favourable terms upon which a fortnightly service via Suez and Brindisi has been arranged. The contract price, I understand, is £80,000 per annum. The Imperial Government, with the view of strengthening the new service, has agreed to discontinue the despatch of a mail from Southampton. All mails will in future be forwarded via Briudisi, which will give an advantage seven days either way in course of post. Formerly all correspondence, unless specially marked and paid for, went via Southampton. Money-orders, &c, invariably went by this route. The British Postmaster-General has made another concession to the contracting Colony of Victoria, charging only 7d. per half-ounce letter via Brindisi, instead of Bd.; and lam informed by the Secretary of the New Zealand Post Office that it is probable that only Gd. will be charged, thereby placing it on a level with the Pacific service via San Francisco, on which the letter rate is also Cd. He also fears that, unless specially marked, English correspondence for New Zealand will be forwarded by the Brindisi route, thereby further scaling the colonial returns from postages. You will readily perceive the drift of this policy. 1 have no hesitation in saying that the service will not be renewed after the expiration of the existing contract unless the United. States makes some substantial concession as a set-off. A three-months course of post, which would inevitably follow, would interrupt communication between the United States and Australia and New Zealand, aud put a damper upon that growing trade. Inquiries at the San Francisco Post OfSce satisfy me that this would be a serious social as well as commercial drawback. On an average 10,000 letters for the Australian Colonies, originating ia the United States and Canada, are mailed each month, of which not quite 1,200 are from Canada; and every mail from the colonies brings an almost corresponding number. The quantity of printed matter passing between the two countries is also very large. It should be remembered that the interruption of this mail service would also seriously imperil the growing Hawaiian trade, of the value of which you yourself can judge. I clip out and forward to you newspaper articles bearing upon this question. In addition to the opposition of the Peninsular and Oriental Company, backed by the Imperial Government, I should mention that the Orient Company announces a fortnightly service to Australia, carrying mails at ship-letter rates, from and after Ist January, 1880. This Company is described in a newspaper article attached. The vessels run at a high rate of speed, the new ships being capable of making seventeen nautical miles an hour. In conclusion, I would respectfully suggest that, should Congress take up this matter and consider it favourably, it should do so with the least possible delay. You will perceive that the Imperial Government does not contemplate charging anything extra for carriage of mails across Europe for the Brindisi route. The new arrangement begins in February, and therefore there is no time to lose. It would be sufficient, I imagine, for your Government to notify to the British Government that in future British enclosed mails to and from New Zealand aud Australia, carried in American ships, or in foreign ships chartered by American contractors, would not be charged freight in crossing the territory of the United States.