The agreement with the treasury, satisfactory as it was in appearance, had in it the seeds of misunderstanding. The treasury announced its willingness that, so long as the revenue from the internal post office was sufficient to meet the expense of the internal communications, no demand for this object should be made upon the provincial funds. The terms of the minute seem to lack nothing in clearness, unless some of the words employed were held to have a significance other than that usually accepted. That is what was the case in this minute. The treasury, in selecting the words it used, meant nothing more or less than that, if the revenue collected on letters passing within the territories of Nova Scotia were sufficient to cover the expense of maintaining the post offices and mail couriers within the province, the provincial authorities would be exempt from all liability. The legislature accepted this view of the case on all but one point. They maintained that Halifax post office existed mainly for imperial purposes,[270] in that its chief function was to provide for the interchange of the mails between Canada and Great Britain, and that its value as a provincial institution was fully offset by the advantages extended by Nova Scotia to Great Britain and Canada in providing for the transmission of their mails across its territory. Holding this view, the assembly examined the accounts laid before them by Howe, and satisfied themselves that, omitting the expenses of Halifax post office from consideration, the internal postage practically covered the expenses of the internal service. They therefore resolved that no vote would be required during that session. They pledged themselves, however, in case the revenue of that year should prove inadequate, to provide for the deficiency, so that the services should not be interrupted or diminished. In the following year, 1840, there was an unquestionable surplus of revenue over expenditure; consequently no demand was made upon the legislature. In 1841, the friction, which was certain to develop when Howe's loose methods were subjected to any strain, began to make itself felt. In April of that year, Howe advised the lieutenant governor, Lord Falkland, that the funds available for the payment of the post office expenditure were deficient to the extent of L546.[271] He, at the same time, submitted to the lieutenant governor his correspondence with the general post office in London, from which it appeared that the general post office, fearing that the omission of the legislature to make any provision for the service would lead to a deficiency, intimated that it might be necessary to make some curtailments, and asked whether some of the less productive routes might not be discontinued.