It has been suggested that the Government could secure the transit of the mails on the receipts, taking both ocean and inland postage; and indeed a temporary arrangement was made with two of our contending companies running to Europe, to transport them on these terms; but such arrangements are temporary only, and can not be made the basis of regular action. They would operate most unequally on different lines. While on the European lines they would pay probably one half the sum of subsidy required, on many other, and especially on new and untried lines, they would not at first pay probably one tenth. And granting that on a given line, the receipts during fifteen years would amount to as much as the whole subsidy required for that time; yet no company could live on them, as for the first few years the receipts from the mail would be very small, while the general income of the line from passengers and freight would also be smaller than at any other time. Moreover, almost every steam company has to borrow money largely during its first years, in anticipation of the larger income from increased trade during the last years of its existence. Thus, while the system of the receipts would operate most unequally, the same aggregate sum given in the form of a regular annual subsidy operates as an assurance for the company and keeps it alive. But the postal receipts are not adequate to the support of any ocean line. In the report before cited, the Committee say, at page 5, that the sum of subsidy then paid was L822,390 per annum, whereas the postal receipts were only L443,782, or but a fraction over one half. There is probably no regular service in the world where the postal receipts would pay for the transport, especially where competition existed. In making our contracts common-sense must dictate the lines necessary, and the general treasury should pay for them. There is no good reason why the sums of subsidy to be paid for mail transportation should be chargeable on the Post Office Department. Nor is it really of much consequence where the account is settled, as the general treasury must after all meet the bills. It may create some misapprehension as to the services on which the sums annually voted are bestowed. But the service, whether sea or inland, is alike incapable of sustaining itself, and is alike beneficial to every citizen of the Republic. And as this service so greatly benefits commerce, it is well that it should be paid from the general revenues of the country; from the duties which it creates. At any rate, almost every Post Master General will feel better disposed to subsidize ocean mail steamers adequately if the bills are payable by the treasury department, and not chargeable upon his own.