Entirely satisfied with the success of his mission to the Continent, Smith returned to London to conclude the transaction by obtaining the permission of the British post office to act as intermediary for the payments which would be made by the French and other Continental governments to Canada for the conveyance of their mails to America. The necessity for having Great Britain as the intermediary for the settlement of these accounts arose from the following considerations. Great Britain had open accounts with all these countries. The mails from these countries were carried to the United States by British steamers, for which they became indebted to the British government; while on the other hand mails from Great Britain for the countries of eastern Europe and for India, passed over one or other of these countries through their postal systems, which gave rise to an indebtedness on the part of Great Britain. Under conventions with each of them, settlements were made from time to time. None of this accounting machinery existed between Canada and any of these countries. The only country in Europe with which Canada had an open account was Great Britain. In consequence of Canada's isolation in this respect the only way these countries could settle their debts to Canada was by direct payments. This, however, would involve legislation, at least in the case of France, which would have delayed the beginning of the plans for many months. Canada, therefore, had but one way open, which was to ask the British post office to receive from France the amounts due by that country to Canada, and apply these sums to the account between Great Britain and Canada. The favour to Canada appeared slight enough but the British post office refused to grant it. First, it objected that the arrangements would involve a great deal of trouble; and afterwards, when driven from that ground, it took an extraordinary position. The British post office declared that the British mails exchanged with the United States were treated in that office as mails carried by packets under contract with the United States, and that it would be inconvenient and objectionable to treat French mails, carried by the same Canadian vessels, as mails conveyed by British packets. It maintained, furthermore, that the postmaster general of the United States, having entered into an agreement with the Canadian post office for the transmission of United States mails by the Canadian vessels, might very naturally object to any arrangement between the British and French post offices under which the French mails were paid for as mails conveyed by Great Britain's packets.