Mails to Lisbon were conveyed by sailing Post-office Packets, which departed from Falmouth for Lisbon every week--wind and weather permitting. Their departures and arrivals were, however, extremely irregular; and it was no very infrequent occurrence for the Lisbon Mail to be three weeks’ old on its arrival at Falmouth, instead of being brought in five days, with an almost mail-coach or railway precision, as is now the case. The communication with Cadiz and Gibraltar was only once a month by a steam packet. The originators and original proprietors of the Peninsular Steam Company, who had, for upwards of a year previously to the time above mentioned, been running steam vessels at a considerable loss between London and the principal Peninsular ports, finding themselves in a position to effect a great improvement in the arrangements for transmitting the Mails, applied to the Government of that day on the subject, but were at first coldly received, and their suggestions disregarded. They continued, however, to prosecute their enterprise; and the celerity and regularity with which their steam packets made their passages soon began to attract the attention of the public. The merchants began to complain loudly of the inefficiency of the transmission of the Mails by sailing packets; and it was at last intimated, from an official quarter, to the Managers of the Peninsular steamers, that if they had any plan or proposals to submit for an improvement of the Peninsular Mail Service, the Government was then prepared to receive and consider the same. In consequence of this intimation, a plan and proposal was drawn up for a weekly transmission of the Mails between Falmouth and Vigo, Oporto, Lisbon, Cadiz, and Gibraltar, by efficient steam packets, and at a cost to the public which should be less than that of the then existing inferior arrangement--namely, sailing packets to and from the Port of Lisbon, and a steam packet, once a month only, to and from Cadiz and Gibraltar. The plan, after due examination, was considered to embrace advantages to the public far exceeding what the then existing arrangements afforded; and its adoption was consequently intimated to the authors and proposers of it; but, at the same time, they were informed that the execution of it would be put up to public competition. Accordingly, an advertisement was soon afterwards issued, inviting tenders, from owners of steam vessels, for conveying the Mails between Falmouth and the Peninsula, in conformity with the plan submitted by the Peninsular Company; and the Contract for the Service was competed for against that Company by the proprietors of some steam vessels, who, under the designation of the British and Foreign Steam Navigation Company, had a short time previously commenced running two small steamers to the Peninsula, in opposition to the Peninsular Company’s vessels.