The postal accommodation on the peninsula of Avalon was greatly augmented by the completion of the railway between St. John's and Harbour Grace in 1884. On January 1, 1885, all the principal offices at the bottom of Conception Bay were supplied with mails daily, and Heart's Content and other offices on Trinity Bay had their mails three times a week. The extension of the branch to Placentia in October 1888 gave that village the benefit of an expeditious service three times a week.

The northern settlements were given the benefit of the more speedy service afforded by the railway. The winter arrangements were expedited and extended. In 1870, when this service was put on a settled footing, ten couriers were employed. In 1890, their number was increased to fifty-four. The mails for the northern districts were despatched from St. John's by railway to Broad Cove station, where they were taken over by the couriers. Their greater number enabled the couriers, not only to shorten their relays, but to establish a trunk line to the settlements of Hall's Bay and Little Bay on Notre Dame Bay, with branch lines running to the more important settlements to the east and west. The overlapping of the western and northern courier systems at White Bay gave the dwellers in those remote regions the opportunity of replying to their letters without loss of time.

Communication was established with the settlers on the Labrador coast in 1875. Previous to that time, mails were sent as the opportunity was afforded by sailing vessels visiting that coast. In that year, a regular fortnightly service was put in operation, the steamer by which the mails were carried connecting with the steamer on the northern route.

The "Ariel," which was first employed on this route having been lost in September of the same year, its place was taken by the "Walrus," whose work gave much satisfaction to the department. In 1881, an arrangement was made by which the steamer running on the northern route from St. John's extended its trip to Battle Harbour, where it was met by the Labrador vessel, which served all the settlements as far north as Nain.

A money order system was an early adjunct to the primary functions of the post office. In 1862 the postmaster general of Prince Edward Island proposed on exchange with Newfoundland, on the basis of the arrangement between that colony and Canada. The postmaster general, Delaney, was eager to accept the proposition, but there were delays, and it was not until 1864 that an exchange was adopted. This exchange was not with Prince Edward Island, however, but with Great Britain.

At the beginning of 1865 exchanges were established with Canada, Nova Scotia and Prince Edward Island, and in 1867 with New Brunswick. In 1866 a domestic exchange was set on foot, the system embracing the twelve leading post offices besides St. John's.

Delaney endeavoured to come to an arrangement of the same character with the United States, but the department at Washington was unable to adopt the proposition at the time, and it was only in 1876 that arrangements were completed for an exchange through the intermediation of the Canadian service.

The comparative lack of banking facilities in the island gave the money order system an unusual utility. At the end of 1865, the amount of the money orders exchanged was $13,112. In the first ten years the business expended to $58,712; in twenty years, its volume had increased thirteen-fold, being $174,740.

Though a steam vessel could make the voyage from the shores of Cape Breton to the south-west coast of Newfoundland in a few hours, the course of communication between the island and Canada and the United States was lamentably infrequent. As late as 1895, mails were exchanged with these countries no more frequently than once a week.

The completion, however, of the railway across the island in the autumn of 1896, changed the aspect of affairs. Trains travelled from St. John's to Port aux Basques, three times a week, touching in their course the bottoms of the great bays, which mark the coast lines on either side of the island. On each of the bays, steamers plied in close connection with the trains, thus giving all the settlements of the island the maximum of benefit to be obtained from a single line of railway. A steamer ran from the western end of the line at Port aux Basques to North Sydney in Cape Breton, and by a night's voyage, Newfoundland was brought into connection with the system of communications on the continent of North America.