[Sidenote: Proposal of Peninsular Company for their conveyance.] A fresh proposal was, consequently, made for a weekly mail between Falmouth, Vigo, Oporto, Lisbon, Cadiz, and Gibraltar, for which purpose efficient steam-vessels were to be supplied, to perform the service, monthly, between these ports, and at a lower rate than half the cost to the country of the steam and sailing-packets of the Admiralty. Though Government now received the proposals of the company with favour and were prepared to act on the plan submitted for consideration, the company was informed that the service, nevertheless, must be put up to public competition. An advertisement was, accordingly, soon afterwards issued, inviting tenders from owners of steam-vessels for the conveyance of the mails between Falmouth and the Peninsula, in conformity with the plan submitted by the Peninsular Company; so that the managers of this struggling undertaking had to compete against others for the due performance of this service, though on plans drawn up by themselves at the request and with the entire approval of Government. But though another company, which had a short time previously started under the name of the British and Foreign Steam Navigation Company, tendered for the conveyance of the mails, it was soon found that they were not able to carry out the service either within the time or on the conditions required. Time was, however, allowed them to perfect their arrangements, and, a month afterwards, fresh advertisements were issued by the Admiralty for the conveyance of these mails. [Sidenote: Contract concluded, Aug. 29th, 1837.] The British and Foreign Steam Navigation Company, however, having again failed to show that they had adequate means for the efficient performance of this service, Government entered into private negotiations with the Peninsular Company with the view of reducing the amount required by them, and, on the 29th of August, 1837, a contract was concluded by which this company agreed to convey, monthly, the whole of the Peninsular mails for 29,600_l._, a sum subsequently reduced to 20,500_l._ per annum. The service was performed with much regularity, and it may be considered to have been the nucleus of the great company which now conveys the mails to all parts of the Eastern world. The _Iberia_, built by Messrs. Curling and Young, was the first steamer despatched with the Peninsular mails. She sailed in September 1837, the benefits thus conferred on those who were engaged in the trade becoming at once apparent. Another step in advance soon followed. [Sidenote: Conveyance of mails to India previously to 1839.]