es of
Ireland, France, and Belgium, was at first performed by steam
packets belonging to the Crown; but for the longer voyages it was
thought better to induce commercial companies to build steamers;
and with that view the contracts were at first made for periods
which, unless previously terminated by failure to fulfill their
engagements, would secure to the company the full benefit of their
original outlay, by continuing the employment of their vessels
until they might be expected to require extensive repairs, or to
become unfit for continued service. In 1837 steam communication
was created with Portugal and Gibraltar; in 1840 with Egypt, with
the West-Indies, and with North-America.

"When the public interest requires the establishment of a postal
line on which the ordinary traffic would not be remunerative for
steamers, the subsidy to be allowed in the contract may be
ascertained either by the test of public competition, or by
calculating the amount which, on an estimate of the probable
receipts and expenditure, will cover the deficiency of receipts,
or by comparing it with the cost of war vessels if employed for
the same purpose."

"The objects which appear to have led to the formation of these
contracts, and to the large expenditure involved, were--to afford
a rapid, frequent, and punctual communication with those distant
ports which feed the main arteries of British commerce, and with
the most important of our foreign possessions; to foster maritime
enterprise; and to encourage the production of a superior class of
vessels which would promote the convenience and wealth of the
country in time of peace, and assist in defending its shores
against hostile aggression.

"These expectations have not been disappointed. The ocean has been
traversed with a precision and regularity hitherto deemed
impossible--commerce and civilization have been extended--the
colonies have been brought more closely into connection with the
Home Government--and steamships have been constructed of a size
and power that, without Government aid, could hardly, at least for
many years, have been produced.

"It is not easy to estimate the pecuniary value of these results,
but there is no reason to suppose that they could have been
attained at that time at less cost."

After noticing the objects