The Sun.
London, England, 1860-05-16 00:00:00

TILE AUSTRALIAN NAIL SERVICE.

A great change is about to take place in the
Australian mail service. The directors of the Penin-
sular and Oriental Steam Company, finding, after
thirteen months' experience of their contract, that
it entails a considerable loss, have definitively de-
cided upon throwing it up, and have already inti-
mated this decision to Government. The present
subsidy is £lBO,OOO (of which one•half is payable
by the colonies, and the other half by the Imperial
Government), and the company's experience leads
to a belief that the amount ought to be raised to
£250,000, in order to afford them any margin of
profit. Before the matter arrived at its present
stage, it may be useful to remind our readers, the
company submitted a proposal to Government that,
in consideration of an addition of £25,000 being
made to the present subsidy (whereby the total
would be raised to £205,000), and of the service
being limited to between Australia and Point de
Galle, instead of between Australia and Suez, they
would establish a fortnightly service each way, in-
stead of a monthly one, as hitherto. The colonies
have not responded cordially to this offer, New
South Wales especially interposing obstructions,
through her desire to see the Panama route
established. The Imperial Government, in the
absence of encouragement from the colonies,
have accordingly declined the responsibility
of recommending to Parliament any addition
to the existing estimate for the service.
But being impressed with a sense of the
inconvenience which would be inflicted upon mer-
cantile and other interests of great importance by a
suspension of the mail communication with the
Australian colonies, Government have applied to
the company to know if they have any alternative
plan to propose. The directors, in reply, have sub-
mitted an alternative plan, which will at once re-
lieve them from the certainty of further loss, pro-
vide for the efficient maintenance of the postal ser-
vice, and at the same time allow of a considerable
saving in its cost. They offer to maintain a
monthly service between Melbourne (only) and
Point de Galle (Ceylon), in connexion with one of
the bi-monthly lines of postal steamers which nov
convey the India and China mails. At Point de
Galle the Australian mails will be transferred to the
Indian steamers. The only port between Melbourne
and Point de Galle at which the Australian packets
will touch will be King George's Sound, for coaling
purposes. This service the company offer to perform
for £120,000 a-year, being £60,000 less than the
sum at present provided for. The £120,000 will
be payable in equal moieties by thelmperial Govern-
ment and the colonies ; and the Government of
Victoria have already consented to guarantee the
£60,000 on that side, taking their chance of
being recouped in due proportion by the other
colonies of the Australian group. It is pointed out
that the regularity of the transit between Australia
—viewed as a whole—and the mother country will
be promoted by the new arrangement. The inter-
colonial postal service between Sydney and Mel-
bourne, and between Adelaide and the other colo-
nies and Melbourne, must be provided for by the
colonies themselves, and if the people of New South
Wales demur to this arrangement, it is obvious that
they have the remedy in their own hands by ac-
tively carrying out their favourite project of estab-
lishing a new and independent postal route via
Panama. There will, of course, be loud complaints
on the part of the other colonies, which will be
placed relatively in a less advantageous position
than Victoria, but Victoria is willing to pay for her
privileges, and ;so other colony appears to be in-
clined to do so. It is manifest that the company
cannot be compelled to carry on the contract at a
heavy loss. It is intended that the new arrange-
ment shall come into operation with the mail leav-
ing Australia on the 22d of July, and with the mail
leaving England on the 20th-26th of June. To
make this clearer, it may be explained that the
June mail via Southampton will leave England on
the 20th, instead of the 12th, and the outward mail
via Marseilles will go on the 26th instead of the
20th. Instructions to this effect will be sent out
to the company's agents in Australia by the mail
of the 18th inst.—Daily News.

THIS DAY'S MARKETS'.

CORN EXCHANGE.

Both from Essex and Kent only a limited supply of
wheat was on offer in to-day's market. The attendance of
buyers was very moderate; nevertheless, both red and white
qualities changed hands somewhat steadily at Monday's
currencies.

The demand for foreign wheat was by no means active.
Importers, however, were very firm, and extreme rates were
realised in every instance. Floating cargoes were a dull
sale.

For barley the inquiry was much less active; neverthe-
less, the quotations were supported.
Tho malt trade was tolerably healthy at previous rates.
We have to report a good consumptive demand for oats
at fully Monday's improvement in prices.
Both beans and peas commanded extreme quotations, and
flour was steady in 'mice.

ARRIVALS THIS WEEK.
Wlie tt. Barley. Malt. Oats. Flour.
9001 360 010 510
- 430
3,080

Enzlish .
Foreign .

2,030

340 sacks.
brls.

BOROUGH HOP.
Our market is tokrabfy healthy, and prices are well sup-
ported. The plantation accounts are favourable.

IVHITECHAPEL.

Tra'e generally is active at very full prices :
Beef, from 2s 10d to 4s: Gd ; mutton, 3s 8d to a Od ;
lamb, 5s 2d to Gs 4d; veal, 4s:pd to 5s Od ; pork, 3s 10d to
5s Od per 81bs.