The History of the Post Office in British North AmericaSmith, William
History
The History of the Post Office in British North America
Smith, William
Canada. Post Office Department; Postal service -- Canada -- History; Postal service -- Great Britain -- Colonies
Alexander Tulloch Galt, inspector general of Canada, who was in London
at the time, laid the whole case before the colonial secretary, pointing
out that the attitude of Great Britain, in attempting to make the United
States a party to the scheme to force Canada to take one-half the amount
for sea postage that was claimed by and conceded to the United States
and Great Britain in respect to their subsidized lines, was the more
objectionable, as there was no reason for believing that the United
States had attached any such stipulation to their consent to use the
Canadian line.
Galt's remonstrance had the effect of inducing the British government to
withdraw from its untenable position in this instance. In the course of
his communication Galt mentioned the disappointment with which it was
learned in Canada that the Cunard contract, which would not have expired
until January, 1862, had been renewed in June 1858.
This action on the part of the British government, Galt insisted, did
not seem consistent with the assurance given by the colonial secretary
to the governor general in December 1856, when he wrote that the lords
of the treasury had apprised him "that the existing arrangements with
respect to the Canadian mail service will continue until the expiration
of the Cunard contract, when they hope arrangements may be affected more
in conformity with what they would regard as an equitable consideration
for the finances of this country."
The Canadian legislature on the first opportunity, voted an address to
the queen, expostulating strongly against the course of proceedings so
injurious to the interests of Canada.
The action of the British government in prolonging the arrangements with
the Cunards was set in a strong light by a review of several
circumstances connected with it.[307] The application of the Cunard
company, for an extension of their contract, was made in October 1857,
only nine months after the discussion with the Canadian government. It
was referred by the treasury to the admiralty and to the postmaster
general.
The treasury recommended that it be granted, while the postmaster
general deprecated an extension, for reasons not connected with the
Canadian representations. On March 2, the treasury decided that it was
premature to discuss either an extension or a renewal of the contract,
though they expressed their readiness to consider favourably, any
application that Cunard might make when the contract had advanced nearer
to its termination.
On the 20th of the same month, Cunard made another application on the
same general grounds; and this time the treasury, without further light
on the subject, yielded, and directed the extension, requesting the
postmaster general to communicate his views as to any modifications
that might be introduced into the contract, without materially affecting
the basis of the existing agreement.
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