With reference to my Despatch N
o 26 of the 
4h April last upon the
               subject of the unsatisfactory and uncertain state of the Mail Service
               to this part of Her Majesty's Dominions, I have now the honor to
               report to your Grace that one of the Steam Vessels which usually
               arrive twice a month at this
place
 place from 
San Francisco has come in
               this morning without any Mail, the Owners having positively refused
               to receive it from Her Majesty's Consul at 
San Francisco and to carry
               it, without being guaranteed a payment of Two Hundred and Fifty
               Dollars for the Service.
               
               2.  This circumstance will prove to your Grace how completely we are
               at the mercy of the United States Vessels, and even if our small
               Revenue would admit of the demand being complied with—about Two
Thousand
               Thousand five Hundred pounds per Annum—we have no security for the
               continuance of the Service, or for the performance of it in any other
               manner than would suit the Owners of the Vessels.
               
               3.  In the present troubled condition of the United States and in the
               not improbable contingency of their Mail Service being cut off or
               temporarily suspended, I need not dilate upon the evils resulting to
               these Colonies from the stoppage of communication with the Mother
               Country.
               
            
            
               4.  Independently, however,
of
 of these considerations, the injury
               inflicted on the mercantile interests of these Colonies, from the
               want of direct Steam communication in
               
English Vessels is very serious.  The Vessels leaving 
San Francisco call at different American Ports en route to this
               place—and there are Emigrants for this Colony and 
British Columbia
               enticed away by every description of fraudulent representation; and
               the additional risk to the Vessels and freight caused by these
               stoppages naturally Entails increased charges for insurance.
               
               5. I write this Despatch hurriedly to save the Steamer just leaving,
               but I trust I have said sufficient to induce your Grace to give the
               matter Your serious Consideration, and to afford us that aid and
               support that we so vitally require.
               
            
            
            
               P.S. At the moment of closing
this
 this Despatch, I have had placed in my
               hands a Memorial to Your Grace upon the subject of direct Steam
               communication which very forcibly and clearly represents the
               disadvantages and evils under which we are struggling through our
               connection with the rest of the world being so entirely by means of
               American Channels. I commend the Memorial and subject to your
               Grace's good offices, merely adding that the Signatures Attached to
               it, are those of the most substantial Business
Houses
 Houses in the place,
               and of some of the most respectable of the Inhabitants, and the
               statements made are but a clear recital of actual facts.
               
James Douglas