Report of Operations of the Post Office of Dominion.

In the number of letters passing through the post in 1877, there was a slight decrease as compared with 1876. In all other postal operations there was an increase. Three-fourths of the distance from the Atlantic to the Pacific is now served by the Canadian Mails. The two gaps are between Thunder Bay and Fort Francis and between Fort Edmonton and the post routes of British Columbia. The following table shows the extent of the Postal service of Canada for 1877, at January 1st.

By an arrangement concluded with the Post Office of Germany, Closed mails have for the past year been exchanged between Canada and Germany, the rates and regulations being those of the Postal Union. The postage on Newfoundland letters has been reduced from 6 cents to 5 and the charge on registered letters to and from the United Kingdom from 8 cents to 5. The landing the mails at Rimouski in summer and Halifax in winter proved a very satisfactory arrangement. The No. of Letters conveyed between Canada and the United Kingdom in the year ending 30th Nov., 1877, was [unclear: 2,28,748;] of Newspapers [unclear: 2,744,04;] of Books, 32,370; and of samples, 36,344. These figures do not include Letters, &c., sent from United States through Canada.

The Free Delivery System shows a large increase. The weekly average of letters delivered in December, 1876, was 120,796, and in 1877, 49,468, an increase of 23½ per cent The free delivery of newspapers increased from [unclear: 163,32,] to 202,268. The No. of carriers was increased by 14. making a total of 144 employed in the service at the close of the year 1877. The revenue derived from the "City Letters" delivered by the carriers is estimated at $26,000.

There was no material variation in the Railway Mail Service. There was an increase of 90½ in the No. of miles of Railway on which mails were carried, but only 6 miles increase of daily service, 16,512½ miles of railway being passed over dally.