The act of the imperial parliament was passed and received the king's assent on the 26th of March, 1834.[223] It contained but two clauses. The first provided for the repeal of the imperial act of 1765, so far as that act authorized the collection of postage in the colonies, but stipulated that it should not become operative until acceptable legislation had been adopted in the several provinces, authorizing the collection of postage and making suitable arrangements for a postal service throughout the provinces.

The second clause stipulated that, in the event of the revenues from the colonial post offices exceeding the expenditures, the surplus should no longer be sent to London to form part of the revenues of the United Kingdom, but should be divided among the several colonies in the proportion of their gross revenues.

The draft bill, prepared by the solicitor of the general post office, provided for a complete postal system in each of the provinces.[224] Under this bill, the postmaster general at St. Martin's-le-Grand was to be the head of each provincial system, and the appointment of a deputy postmaster general in each province, who should reside in the province and manage the system therein, was to be in his hands.

The postage rates were to be the same in the several provinces; and in the case of correspondence between the provinces, the charge for postage was to be fixed in accordance with the entire distance the articles were carried, without regard to provincial boundary lines.

It will be seen that if the provincial legislatures adopted the bills framed in London for them, there would be no change whatever in the practical working of the colonial system. The postmaster general in London would, as theretofore, control the arrangements, and the charges were fixed, regardless of provincial boundaries. As the imperial act stipulated that any surplus which should arise from the system should be distributed among the colonies, so the proposed provincial bills provided for the contingency of a deficit in its operations.

Each provincial bill empowered the postmaster general to demand from the legislature the amount, which it was agreed that the province should be held responsible for, to make up the deficit. Upper and Lower Canada were to bind themselves to pay in such a case up to £2000 from each province. Nova Scotia was to pay up to £1200; New Brunswick up to £600; and Prince Edward Island up to £200.

In anticipation of the adoption of the bills by the several legislatures, the postmaster general appointed an accountant, who should have general charge of the financial transactions of all the colonies. He was to be established at Quebec. His position in relation to the deputy postmaster general of Lower Canada was somewhat peculiar. While, in general, he was subordinate to the deputy postmaster general, in all matters touching the accounts, he was independent of the deputy, and responsible only to the postmaster general in London.

There were also appointed two travelling surveyors or inspectors in the Canadas, one of whom was stationed at Quebec, and the other at Toronto. Nothing could have been more necessary for the proper administration of the service, and for the expansion of the system to meet the requirements of the new settlements. It was impossible for Stayner to give personal attention to the duty of supervising postmasters, or to inquiries into the merits of the numerous applications from all parts of the country for new post offices.

The necessity for assistance in this direction was impressed on Stayner by a number of robberies which took place on the grand route between Montreal and Toronto—episodes in post office economy which he was helpless to investigate.

Two of these robberies have incidents connected with them, which are deserving of mention. In February 1835, on a stormy night, the mail bag dropped off the courier's sleigh somewhere in the neighbourhood of Prescott, and it could not be found. As the contents of the bag included banknotes to the value of from £10,000 to £12,000, a reward of £200 was offered for the conviction of the thief and the recovery of the money.