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once take such steps as he deems necessary for ascertaining what degree of co-operation may be anticipated on the part not only of important Governments like that of Natal, but of all other parts of Her Majesty's Dominions whose interests in this question the Secretary of State would propose to consult.

"Lord Knutsford will no doubt agree with the Chancellor of the Exchequer in the opinion that a uniform rate of 2d. is that which would be the most acceptable to the letter writing public, both here and in the Colonies, and, as Her Majesty's Government is prepared for the somewhat considerable sacrifice of Imperial Revenue which this reduction will involve, the main question to be considered is whether the Governments of the other parts of the Empire are also prepared to make a similar sacrifice.

"I am, &c.,

(Sd.)

"S. A. BLACKWOOD.

"The Under-Secretary of State, for the Colonies.”

EXTRACT FROM MR. GÖSCHEN'S SPEECH.

But I believe that in the proposal I am now going to make I shall have cordial support from all Members of the Committee. We propose, if we can persuade other interested parties to do so, to deal with the question of the postage to India and our Colonies, and to reduce all rates by whatever route, to 24d.-not ocean postage only, but postage by the quickest route. The existing rates to Australia, India, China and the Cape, range from 5d. to 6d., and the House is also aware that in the case of some of these letters they would be transmitted cheaper to their destination if they were posted abroad. No doubt it is a great anomaly that if letters are sent to Calais they can be posted to our officers at Quetta or in Burma more cheaply than if they were posted at a British Post Office. We propose, therefore, to remove these anomalies if we can persuade the other interested parties to join us, because we cannot act in this matter without the cordial co-operation of the Colonies themselves. The ocean penny postage has been recommended very much on the ground that it would draw us closer to the Colonies; but it would be a very unsatisfactory beginning to such a proceed- ing if we were to embark upon a cheapening of postage to which the Colonies themselves were opposed. My Right Hon. Friend the Postmaster-General will place himself in communication at once with the Agents of the Colonies, and he will see, with every hope of success, whether they can be induced to reduce the postage in the future to 24d. by whatever route the letters may be sent. The loss which would be incurred by this process would be £80,000 in the present year. It would be £105,000 in a complete year. But I think £80,000 will cover it in the present year, looking to the negotiations which will take place. Now, I intended to explain to the Committee how this loss would arise. But, looking to the ground which I have still to traverse, they will excuse me if I do not defend the proposal more than by making this statement, I can only say this: That we must assume this loss, because we cannot recoup ourselves on letters which go by the quickest route, by any increased correspondence. We have to pay an amount equal to a 1d. for the foreign transit, and the cost of the letter in this country, and in the Colonies or in India, is taken to be even more than 1d. Thus, if you add 1d. to the lid., the cost of the postage will be more than 24d., or at least, fully 24d., and we cannot expect to recoup ourselves. But I have little doubt that the Committee generally, will be prepared to make this sacrifice out of Revenue for the purpose of removing anomalies and securing cheaper com- munication with India. India will also have to be consulted on the proposal. We are at present in communication with her on the subject.

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