abandoned, as the subsidy in each case was too small. About this time the Chancellor of the Exchequer requested a thorough investigation into the foreign steam packet system. This was made in the most searching manner in 1853; and such was the effect that it was determined not only to sustain all of the existing lines in all of their integrity, but to extend the system and afford additional facilities to British commerce and the British people. Accordingly, a new contract was made last year, 1856, with the "European and Australian Mail Steam Packet Company" for a monthly service between Southampton, Marseilles, Malta, Alexandria, Suez, and Sydney, at an annual subsidy of L185,000, or $925,000. The Company has seven steamers of 13,410 tons, and 3,290 horses' power. They run 336,000 miles per annum, and receive 11_s_ per mile from the Government. It must be borne in mind, too, that when this line was established there were already two lines to the East-Indies and China, and one to Australia. This makes two to Australia, and three to the East generally. There is also a contract, made in 1850 with Mr. Cunard, for running monthly between Halifax and Newfoundland, and Halifax, Bermuda, and New-York, as well as between New-York and Bermuda and St. Thomas. New-York was soon dropped from the list, doubtless because the British steamers yielded us more advantage than was gained by the mother country or the Provinces, and the line is now continued, at the original compensation, L14,700, or $73,500, between Halifax and Newfoundland, and Halifax, Bermuda, and St. Thomas, connecting with the Cunard steamers. The steamers are small coasters, and run at the rate of 3_s_ per mile. Hence, they make 98,000 miles per annum.