The question naturally arises, why, seeing that a larger advance (say of £45,000,000 instead of £30,000,000) would probably suffice to relieve the Post Office of _all_ payments for railway service, I have not proposed the larger amount? The reason is that I have not felt justified in asking Government to do more than is necessary to supply the defects of early legislation, by placing the Post Office in a position similar to that in which it would probably have stood, had its interests (and through it those of the public) received due attention from the legislature when railways were first established. It is unnecessary to add that, should Government feel disposed to extend the advances to railways beyond the limit I have proposed, the saving which would result from such extension might go to the further relief of the Post Office, or be carried direct to the credit of the general revenue of the state, as Government might determine. In arriving at this conclusion, I have not overlooked the importance of neutralising the unwillingness sometimes manifested by the companies now under agreement with the Post Office to afford additional service without additional pay. Against this inconvenience I consider the Post Office may be tolerably well secured by making the agreement terminable by the Government, without notice, in the event of the conditions not being fully performed by the company. I may add that advances, such as those now suggested (except that they were unfortunately unaccompanied by any stipulations as to the postal service), have already been made to several of the Irish railway companies. Should the above plan be adopted by Government, I have little doubt that almost every railway company would speedily avail itself of the advantages it affords; and, if so, while both parties would be saved the trouble, expense, delay, and uncertainty of arbitrations, the Postmaster-General would be enabled, more effectually even than by the proposed bill, to grant many important postal facilities earnestly desired by the public, which he is now obliged to withhold, a most acceptable boon would be conferred on the railway companies, and a large saving--estimated above at £250,000 a year--would be effected in the Post Office expenditure. R. H. 6th January, 1857. APPENDIX K. [See p. 291.] _Minute relative to Panama Route to Australia._ _The Postmaster-General._ 1. In my minute of the 15th instant, on the subject of the Treasury Minute of the 11th (referred to your Lordship for report), I recommended that the consideration of that part of the Treasury Minute which relates to an additional postal service to Australia, by way of Panama, should be postponed, in order to admit of the immediate call for tenders for the continuance of the service by way of Suez.