D.—No. 1b

CORRESPONDENCE RESPECTING PROPOSED INCREASE OE POSTAGE ON LETTERS DESPATCHED BETWEEN GREAT BRITAIN AND AUSTRALIAN COLONIES AND NEW ZEALAND, EROM 6d. TO Is. THE HALE-OUNCE LETTER. No. 7. Downing-street, 26th January, 1564. Sir — I have the honor to transmit to you a copy of a letter from the Lords Commissioners of the Treasury, stating that, on and after the Ist of July next, the postage on letters despatched from this country to the Australian Colonies and New Zealand, via Southampton, will be raised to one shilling the half-ounce letter, and via Marseilles, to one shilling and fourpence, together with some other minor charges. You will be good enough to lay this communication before your Responsible Advisers, for their consideration, and also in order that these changes may become publicly known. I have, &c, Newcastle. Governor Sir George Grey, X.C.8., &c, Ac, &c. Enclosure 1 to No. 7. The Hon. F. Peel to Sir F. Rogers. Treasury Chambers, 11th January, 1864. Sir,— I am commanded by the Lords Commissioners of Her Majesty's Treasury to acquaint you that the Postmaster-General has called the attention of this Board to the question of raising the postage on letters to the Australian Colonies and New Zealand, with a view to diminish the loss at present sustained in this service, and my Lords concur with His Lordship in opinion that steps should be taken for this purpose. I am to observe that the increase from 6d. to Is. the half-ounce, which took effect more than six months ago in the charge upon letters between this country and the West Indies, and the Cape of Good Hope, and Natal —these last Colonies, like those in Australia, with a considerable emigrant population —has had a very satisfactory result. The Cape service, which, at the lower rate of postage, and the greater amount of subsidy paid, was, until then, attended with great loss, is now self-supporting, whilst the loss sustained in the service to and from the West Indies, has been greatly reduced, very little diminution of correspondence having followed the increase in the rate of postage. My Lords have every reason to believe that similar satisfactory results would attend an augmentation in the rate of postage on letters to the Australian Colonies and New Zealand, and they therefore request that the Duke of Newcastle will inform the Governments of those Colonies that, on the Ist of July next, the postage on all letters despatched from this country to those Colonies, via Southampton, will be raised to one shilling the half-ounce letter, and the postage on letters sent via Marseilles will be raised to one shilling and fourpence the half-ounce letter, but that at the same time with a view to relief being afforded to the correspondence of the poorer class of emigrants, the postage on letters conveyed by private ship will be reduced to 4d. the half-ounce letter. My Lords further request that the Duke of Newcastle will, in making this communication to the Governments of the respective Colonies, observe to them that each Colony will be at liberty to alter to such extent as it may think proper the postage on letters despatched to or through the United Kingdom. I am to state further that my Lords propose that, simultaneously with the raising of the postage on letters to the Australian Colonies and New Zealand, the scale of weight should be modified, and made to correspond with the scale recently adopted in respect of letters exchanged with the British West Indies, Cape of Good Hope, &c. Under this amended scale, one rate of postage will be charged for each half-ounce that a letter may weigh, so that a letter weighing more than an ounce, but not more than 1^ ounce, will be charged three rates of postage ; a letter weighing more than 2 ounces, but not more than 2^ ounces, four rates of postage, instead of five and six rates respectively, as under the existing scale ef progression.

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