SMITH, Minister of Finance to Mes, December 28, 1870

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Gentlemen: Referring to our conversation this morning on the subsidy for an Australian steamer, I will state that the government is ready to take into immediate consideration contracts that may be proposed by the agent of the N. P. T. Company, or of any responsible company, whose steam service shall carry out the conditions specified in the appropriation bill, always bearing in mind the relations of Mr. Hall to the service, which he has initiated with great labor and risk to himself, and whom we desire to treat with consideration.

The wording of the subsidy item you are familiar with, as a copy of it has been sent to you from this department.

Speaking for myself, I anticipate that a speedy arrangement may be arrived at, as the establishment of a satisfactory line seems very likely to be made by the countries that are interested in the project.

I remain yours, truly,