Then they had to consider whether they should join the Federal service, via Australia, which would: cost them £13,000 a year for a weekly service, and they could not obtain a fortnightly service for less than £20,00 J. Ho did not think the House would accept that ser vico as compared with the cost of the Eervice which the Government now proposed. Then as to the direct service and the San Francisco ser vice, that would cost them £28,760; but £5500 of that wflß for a bonus for the direct service. But if the committee determined that no bonus should be paid, the Government proposals would be reduced by £5500. As to Mr Ward's I amendment, ho felt it would be impossible to I perform the service for the amount stated by I that hon. gentleman. He thought it would be a I great mistake in every way. if the House I rejected the Government proposals tor the Ban I Francisco service. The country would not I allow its correspondence with America to go Iby England, and that was what would I happen if the San Francisco eervice were I abolished. The reason the Government asked I the House to agree to this service was because I it was practically the cheapest they could get. I The whole proposal was only for 12 months, I and New South Wales had agreed to pay the I cost of the steamers, and the farmers of the I South could not be in any way affected by the I proposals of the Government. There was no I doubt that New South Wales had for some years I the best of the bargain, but he would point out I that Sydney was our best market, and it did I seem a little shabby that for the sake of saving I a small sum they Bhould say now they I would have nothing to do with her. IHe thought it was well worth paying I a little extra for in order to cultivate I friendly relations with a colony which was also I our most favourable market. The mail services I at present cost the colony £55,000 a year, of I which our loss was £6500, whereas the new pro- I posal of the Government was £28,750, which I would.mean instead of a loss a gain to the I revenue of £12,000. 