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Title: The Development of Rates of Postage: An Historical and Analytical
Study

Author: A. D. Smith

Author of introduction, etc.: Viscount Herbert Louis Samuel Samuel

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Transcriber's note

There are numerous quotations from documents
in German, French and archaic English which
use many abbreviations, variant spellings and
inconsistent spellings which are retained, unless
an obvious typographical correction is listed at
the end of this document
The Table of Contents is found on page vii and
the alphabetical Index is found on page 425.

STUDIES IN ECONOMICS AND POLITICAL SCIENCE.
Edited by the Hon. W. Pember Reeves, Ph.D., Director of the London
School of Economics and Political Science.
No. 50 in the Series of Monographs by writers connected with the London
School of Economics and Political Science.
THE DEVELOPMENT OF RATES OF POSTAGE

THE DEVELOPMENT OF
RATES OF POSTAGE
AN HISTORICAL AND ANALYTICAL STUDY
by

A. D. SMITH, B.Sc. (Econ.)

of the secretary's office,
general post office, london

with an introduction by

THE RIGHT HON. HERBERT SAMUEL, M.P.
Postmaster-General 1910-14 and 1915-16

LONDON: GEORGE ALLEN & UNWIN LTD.
RUSKIN HOUSE 40 MUSEUM STREET, W.C. 1

[Thesis approved for the Degree of Doctor of Science (Economics) in the
University of London]
First published in 1917
(All rights reserved)

PREFACE
This study, which was prepared primarily as a Research Studentship Report
for the University of London, is intended to be a contribution to the history
of rates of postage, and an attempt to ascertain the principles, economic or
otherwise, on which they are and have been based.
The Postmaster-General accorded me permission to consult the official
records at the General Post Office, London, and through this courtesy I have
been enabled to include a detailed examination of the economic aspect of
the rates in the inland service in this country, and to place in the Appendix
copies of some original documents which have not before been printed.
Without this permission, which I desire here to acknowledge, it would,
indeed, scarcely have been possible to undertake the inquiry. It must be
made clear, however, that the work is of entirely private character, and
cannot be taken as in any way expressing the views of the British Postal
Administration.
In 1912, as the holder of the Mitchell Studentship in Economics at the
University of London, I visited Ottawa and Washington; in 1913 I visited
Paris and the International Bureau at Berne; and in 1914, Berlin. I am much
indebted to the various postal administrations visited, to whom, by the
courtesy of the Postmaster-General, I carried official letters of introduction
in addition to my letters from the University, for facilities to consult official
papers relating to the subject of investigation, and for assistance from
members of the staff with whom I was brought into contact.
The work was all but completed at the outbreak of war, but publication has
been unavoidably delayed. The overpowering necessities created by the war
have caused Governments again to look to postage for increased revenue.
Penny postage itself has been in danger in the country of its origin. Various
war increases of postage have already been made, both here and abroad,
and brief particulars of the changes in the countries dealt with have been
included. Further proposals for increasing the revenue from postage will

possibly be made, and I am hopeful that these pages, in which the course of
postage is traced, may then be found of service.
For the privilege of numerous facilities in connection with my work on the
rates in this country I am indebted to Mr. W. G. Gates, Assistant-Secretary
to the Post Office; and for assistance in my inquiries abroad I am indebted
to Dr. R. M. Coulter, C.M.G., Deputy Postmaster-General, Ottawa, and Mr.
William Smith, I.S.O., at the time of my visit Secretary to the Canada Post
Office; to Congressman the Hon. David Lewis, of Maryland, and Mr.
Joseph Stewart, Second Assistant Postmaster-General, United States Post
Office; to M. Vaillé, of the Secrétariat Administratif, Ministry of Posts and
Telegraphs, Paris; and to M. Ruffy, Director of the International Bureau,
Universal Postal Union, Berne.
I am especially indebted to Professor Graham Wallas for valuable
suggestions and advice.
A. D. SMITH.

London School of Economics,
1917.

CONTENTS
page
Preface v
Introduction xi
I. The Rate For Letters—
Letter Post in England 1
Letter Post in Canada 37
Letter Post in the United States of America 59
Letter Post in France 78
Letter Post in Germany 97
II. The Rate For Newspapers—
Newspaper Post in England 111
Newspaper Post in Canada 136
Newspaper Post (Second-class Mail) in the United States of
148
America
Newspaper Post in France 164
Newspaper Post in Germany 173
III. The Rate For Parcels—
Parcel Post in England 183
Parcel Post in the United States of America 191
Parcel Post in France 204
Parcel Post in Germany 209
IV. Minor Rates—
(i) Book Post 220
(ii) Samples 229
(iii) Commercial Papers 238
(iv) Postcards 241
(v) Rate for Printed Matter for the Blind 244
(vi) Minor Rates in the United States and Canada 244
V. Local Rates 247
VI. International Rates—

(i) International Letter Post 263
(ii) International Parcel Post 277
VII. An Analysis Of Cost—
Method 283
Cost 289
VIII. Conclusion 312
Appendix A—
RATES OF INLAND LETTER POSTAGE CHARGED IN
I. 336
ENGLAND, 1635-1915
II. FOREIGN RATES IN THE BRITISH SERVICE 340
III. THE THURN AND TAXIS POSTS IN GERMANY 349
IV. PARCEL POST IN CANADA 355
V. THE SUPPLEMENTAL SERVICES 357
VI. POST OFFICE REVENUE 358
VII. GRAPHS 368
Appendix B—
DOCUMENTS AND EXTRACTS ILLUSTRATING ASPECTS
OF POSTAL HISTORY—
(i) Ancient Posts 374
(ii) Nuncii and Cursores 377
Witherings' Scheme for the Reform of the Posts in
(iii) 378
England, 1635
(iv) The Monopoly and the General Farm of the Posts 380
(v) The English Post Office in 1681 384
(vi) The Cross Posts 388
(vii) The Early Posts in North America 391
The Clerks of the Road and the Transmission of
(viii) 403
Newspapers
Appendix C—
list of authorities 412
Index 425

INTRODUCTION
This book contains a collection of facts and an examination of principles
which will be of value to all students of the subject with which it deals. It is
more comprehensive than any book on rates of postage yet published in the
English language, or, I believe, in any other. It is careful and unbiased, and
although here and there some of the author's conclusions may not meet with
unanimous acceptance, they cannot fail to stimulate useful discussion on a
matter which is far more important than is often realized.
The whole of our social organization has come to depend in large degree
upon the post. Commerce, in all its departments, relies upon it. All the
variety of associations which are, in their wide expansion, distinctive of
modern civilization and necessary to its life and energy—employers'
associations, trade unions, co-operative societies, friendly societies,
religious bodies, political and propagandist organizations of every kind,
local, national, and international—the whole nervous system of the modern
State, depends upon the quick transmission of information and ideas; it
would never have reached and could not maintain its present development
without cheap, reliable, and speedy means of communication. The indirect
effects of changes—even small changes—in the postal system are often
extensive and almost incalculable.
Where the State itself conducts an industry there is always a risk that
commercial considerations and fiscal considerations will not be sufficiently
distinguished. Charges may be fixed at a higher point than is warranted by
the cost of the services rendered. The surplus goes to the national revenue.
It is a tax, but a concealed tax, and in the case of postal rates it is one of the
worst kinds of tax, a tax on communications. On the other hand, charges
may be fixed at a lower point than will cover the cost of the service. The
deficit is a subsidy, but a concealed subsidy. The halfpenny postage rate for
bulky newspapers, for example, or the extension of telegraph offices to
rural districts, may be socially useful, but they are unremunerative. The loss
that they involve to the Exchequer may be justifiable, but if so it should be
deliberately incurred. It should not be hidden in the profit that is made on

the letter post. Without a scientific examination into the actual cost of each
part of the postal and telegraphic service, and into the precise relation of
revenue to cost, the charges may include, haphazard, an excess which is
nothing but pure taxation, the expenditure may include an addition which is
nothing but pure subsidy, and neither the administrator nor the taxpayer
may be aware of the fact.
It is therefore one of the essential duties of the Post Office to make such
examinations, and of students or critics of postal affairs to check or to
supplement them. Mr. A. D. Smith has made a useful contribution to the
application, in this sphere, of the methods of science to the conduct of
industry; and since the postal service is the most international of all forms
of social activity, it may be expected that his contribution will be of value,
and will have its influence, far beyond the limits of our own country.
HERBERT SAMUEL.

I

THE RATE FOR LETTERS
LETTER POST IN ENGLAND

In England the postal service, as an organized means for the carrying of the
King's despatches, dates back some four hundred years, and as a recognized
arrangement for the carrying of letters for the public, some three hundred
years. Before the establishment of a regular system of posts, provision had
been made for carrying the King's despatches by special messengers, called
nuncii or cursores, attached to the royal household.[1] Their function was
naturally one of importance, and, from early times, large sums were
expended in their maintenance. They were employed on the private and
confidential business of the Crown and of members of the royal household,
and on affairs of State, both in England and abroad, although their function
was primarily to serve the convenience of the King.

This was a system for the conveyance of official despatches only.[2] No
public provision was made for the conveyance of letters for private
individuals. Such letters were conveyed by servants, by special messengers,
or by the common carriers,[3] and there is evidence of the existence of a
considerable private correspondence in the frequent issue of writs during
the fourteenth and fifteenth centuries ordering supervision of the traffic in
private letters, the uninterrupted transmission of which was a source of
much anxiety to the Crown from fear of the fomenting of sinister and
treasonable plots against itself.[4]
The establishment of the nuncii or cursores developed into a regular
system. On certain lines of road relay stages were set up, at which the
messengers might without delay obtain a change of horses, a system first set
up by Edward IV in 1482, during the war with Scotland.[5] Such relay

messengers were called "posts," a word borrowed from the French.[6] The
term was also applied to the line of route, and the expression "post," or "line
of posts," was used to denote a route along which, at certain stages, post-
horses were kept in readiness for the use of the King's messengers.
Travelling in this way the messengers were able to cover a hundred miles a
day. The establishment of lines of regular posts became a feature of the
administrative system, and a special officer of the royal household was
appointed to control them.
The first recorded Master of the Posts was Brian Tuke, who held the office
in 1512. The posts, like the establishment of special messengers, were
maintained solely at the cost of the King. The master received a salary from
the King (which in a patent issued in 1545 is given as £66 13s. 4d. a year),
and also the amount of his expenses incurred in providing for the carrying
of letters. The regular postmasters received a daily wage from the King. On
lines along which no regular post had been established, but along which it
might on occasion be necessary to send special messengers, the townships
were obliged to furnish horses for the service of the messengers. Remarks
in contemporary papers suggest that no payment was made in such cases,
but that horses were supplied gratis for the King's service.[7] There is no
record of the early days of Tuke's tenure of the office of Master of the Posts;
but in 1533 Thomas Cromwell complained to Tuke concerning the
condition of the posts, and the great default in the conveyance of letters.[8]
The posts were in many cases established on account of some special
circumstance, and were of a temporary character. The first regular post—
that established in 1482 during the war with Scotland—was, of course,
temporary; but at much later dates, when "ordinarie," or permanent, posts
had been established, such as the post from London to Berwick and that
from London to Beaumaris, it was still usual to establish "extra ordinarie"
posts "in divers places of the Realme" as occasion might from time to time
require, as, for example, during the periods of the sovereign's progresses.[9]
The early posts had a second function, not less in importance than that of
providing for the conveyance of the sovereign's despatches, and despatches
sent on affairs of State viz. the provision of means by which persons
actually travelling on the business of the sovereign, though not bearing
despatches, might do so with facility. This second function, the travelling

post, continued until the eighteenth century. It is a function which is
essentially akin to the provision of a means of intercommunication by
means of letters. In many parts of the United Kingdom, and also in other
countries, the means provided for the conveyance of the mail are still
largely used by persons desiring to travel.[10]
The use of the post-horses by ordinary travellers commenced at an early
period. In 1553, when the posts had been in existence only some fifty or
sixty years, a rate of a penny a mile for persons riding post was fixed by
statute.[11]
Great abuses grew up round the travelling post, or "thorough post," as it
was called.[12] Riders in post frequently failed to pay a reasonable sum for
the hire of horses; and since King's messengers, although paying no fixed
rates, obtained better accommodation than others, riders in post travelling
on their own affairs made no scruple to represent themselves as travelling
on public service. Orders directed against these abuses were issued in 1603.
Riders in post on the King's affairs, with a special commission signed either
by one of the Principal Secretaries of State, by six at least of the Privy
Council, or by the Master of the Posts, were to pay at the rate of 2½d. a
mile for a horse. All others riding post about their own affairs were to make
their own terms with the postmaster, and to pay in advance.[13] The net
result was that for all persons riding with the special commission a fixed
rate was payable in place of uncertain rates as hitherto, and the postmasters
were protected from being imposed upon by persons riding post on their
private business. Without the special commission it was useless to pretend
to be travelling on the King's affairs. By this proclamation the postmasters
were also given the exclusive right of letting horses to travellers.[14] The
wages of the postmasters in respect of the "post for the pacquet" were a
fixed sum per day, and a certain number of horses had to be kept in
readiness, in proportion to the amount of the wages paid. As regards the
service for the State, the system of posts was therefore on a complete and
definite financial basis. The rates for the thorough post, although not in any
way rates of postage in the modern sense, were the first rates applied to the
service of the posts (the pay of the postmasters for the packet post being
merely wages per diem), and it was to them that the term "postage" was
first applied. These rates were in fact the original "postage."

The number of regular posts was in early times quite small.[15] In order to
provide a means of reaching other parts of the kingdom with some degree
of facility, the municipalities were required to maintain, or at least provide
when required, post-horses for the use of the King's messengers.[16] Some
municipalities made definite provision of horses: Leicester, for example,
maintained "certen poste-horses" (four in number) for the service of the
Prince; but if horses were not provided voluntarily, the magistrates and
constables were authorized to seize them for the King's service wherever
they could be found.[17] Many of the posts continued for a long period to be
of a temporary nature. Even in the seventeenth century some which it might
be thought would have been important at any time, were regarded as
extraordinary posts, and were discontinued with the disappearance of the
special circumstances on account of which they had been established.[18]
A third function became attached to the posts, viz. the transmission of
private letters. As it is impossible to say at what date the posts began to be
used by ordinary travellers, so it is impossible to say at what date they were
first used for the conveyance of letters other than those on the affairs of the
King or of the State. The universities and municipalities provided services
for the carriage of their own letters;[19] but from a very early period the
posts were also made use of for the conveyance of unofficial letters. The
Master of the Posts received no direct profit from the carrying of such
letters,[20] but the price paid to him for the office of Deputy Postmaster was
probably thereby increased.[21]
A Proclamation of 26th April 1591 prohibited the conveyance of letters to
or from countries beyond the seas by any person other than the ordinary
posts and messengers; and referred to previous similar prohibitions. The
object of this prohibition, which foreshadowed the monopoly of the carriage
of all letters, whether for places within the realm or to or from foreign
countries, was alleged to be the redress of disorders among the posts in
general, and particularly to prevent inconveniences both to the royal service
and the lawful trade of honest merchants.[22] A Proclamation of 1609
repeated this prohibition.[23]
In 1626 a legal struggle was in progress between Matthew de Quester and
Lord Stanhope, both of whom claimed to hold a King's Patent conferring

the right to carry foreign letters.[24] This litigation led to laxity and omission
in the conduct of the foreign service, so that merchants trading abroad were
put to great inconvenience. In consequence, in November of that year, the
King granted the Merchant Companies permission to arrange for the
conveyance of their foreign letters by their own messengers. The high
authorities were disturbed by the grant of this permission,[25] and in October
1627 it was revoked "upon weightie reasons of State." Only the Merchant
Adventurers were still permitted to use their own messengers, and they and
all other merchants were required in times of war and danger to the State to
acquaint the Secretaries of State from time to time with what letters they
forwarded abroad.
The foreign post continued in an unsatisfactory state, and a reorganization
in accordance with a proposition submitted by the Master of the Foreign
Posts, Thomas Witherings, was notified in orders issued on the 28th January
1633. In consequence of complaints, both of Ministers of State and
merchants, it was decided to send no more letters by the carriers, who came
and went at pleasure, but, in conformity with other nations, to erect
"stafetti," or packet posts, at fit stages, to run day and night without ceasing.
Under this new system the Foreign Postmaster of England undertook, with
the consent of the foreign Governments, to provide "stafetti" for the
conveyance of foreign letters on the Continent, e.g. he arranged the
"stafetti" between Calais and Antwerp.
For the inland posts the financial arrangements of 1603 remained some
thirty years undisturbed, and notwithstanding that the posts were used by
travellers, and for the general conveyance of private letters, they remained a
charge on the King's revenue. In 1633 the deficit was some £3,400, and in
that year Witherings submitted a plan for the complete reorganization of the
inland posts.[26] The new system, which applied only to the "post for the
pacquet," was to be based on a definite scale of charges. Previously, there
had been no regular system of charging letters carried for the public, and it
is at this point that the modern Post Office emerges. Up to this time the
conveyance of letters for private individuals, although it may have been a
source of emolument to the postmasters and couriers, was not recognized
by the State as part of the function of the service. Under the proposed
system, a charge was to be made for every letter or packet, varying in

accordance with the distance for which the letter or packet was conveyed,
and its size. The latter was to be graduated for light letters according to the
number of sheets, and for heavier letters and packets according to weight,
starting from the ounce. Here, therefore, is to be seen at the inception of
"postage" in the modern sense a definite distinction between the rate
charged on the ordinary letter, the weight and bulk of which are in general
insignificant, and that charged on the larger and heavier packets of deeds, or
what not, which might be forwarded by post.
The reform of the posts on these lines was carried out by Witherings in
October 1635, and constitutes a remarkable development of the Post Office
system. The rates of charge were as follow:—

Single Double Per
Distance of Transmission.
Letter. Letter. Ounce.
Not exceeding 80 miles 2d. 4d. 6d.
Exceeding 80 miles, not exceeding
4d. 8d. 9d.
140 miles
Exceeding 140 miles 6d. 12d. 12d.

The great change of 1840 modified this system only at two points, viz. (1)
uniformity of rate, that is, the elimination of the table of distances from the
rate-table, and (2) the introduction of the method of charge according to
weight for all letters and packets.
The monopoly of foreign letters was by this time well established, and the
reason for its existence well defined. A further proclamation of the 11th
February 1637-8 again declared this monopoly, and proceeded to declare a
monopoly of letters between persons within the realm, the second
monopoly being justified, not on the ground of necessity in order to guard
the safety of the State, but on the ground that commerce and
correspondence within the realm would benefit.[27] The real explanation of
the new prohibition for inland letters was no doubt the fact that Witherings
had been appointed Master of the Inland Letter Office for the purpose of
bringing into operation his scheme for reorganizing the posts, and it was
essential to the success of the scheme that he should have the sole right of
carrying letters. There was, of course, the political reason of danger to the
State from free and uncontrolled transmission of letters, but the feeling in

that respect seems not to have been so strong regarding the inland letters as
regarding the foreign letters. It developed later, however.[28]
In 1640 Witherings was displaced on some charge of maladministration,
and the office was given to Philip Burlamachi, a merchant of the City of
London. Witherings did not give up the office without a struggle. For two
years he strove to retain it, but without much success; and in 1642 he
assigned his patent to the Earl of Warwick, who continued the struggle.
Burlamachi was backed by Edmund Prideaux, afterwards Attorney-General.
Into the merits or progress of the contest it is unnecessary to enter. It will be
sufficient to record that the Lords espoused the cause of the Earl of
Warwick and the Commons that of Burlamachi; that the contest continued
some two years; and that in the end the Lords gave way, and Burlamachi
continued Master of the Posts.
The office fell vacant in 1644, and Parliament appointed Prideaux to the
charge of the posts.[29] This task he entered upon with some seriousness,
and with considerable success. He extended the service, but raised the
minimum postage to 6d. From a report submitted by him to the Council of
State in 1649, it appears that he had established "a weekly conveyance of
letters into all parts of the nation," and that with the moneys received as
postage he had been able to defray the whole cost of the postmasters of
England with the exception of those on the Dover Road.[30] At the time of
his appointment the posts involved a charge to the State of some £7,000 a
year.[31] It might therefore be thought that for Prideaux to be able to carry
on the system, to give a despatch of letters to all parts of the kingdom every
week, and at the same time make the proceeds of postage cover the whole
cost, except for the Dover Road, was a considerable achievement. The
Commons were not, however, altogether satisfied. The long disputes
between the various patentees, and their anxiety not to lose any part of the
business of conveying letters, made it evident that there was a profit other
than the salary paid by the King, notwithstanding that funds for the
maintenance of the posts were drawn from the Exchequer year by year. The
office of Master of the Posts was bought and sold. Witherings sold part of
his wife's estate to the value of £105 a year in land to obtain the office. The
deputy postmasters also bought their offices. And in 1642, by vote of both
Houses, Burlamachi had been required to give an account of the profits of

the Letter Office. The Letter Office was in fact not on the simple basis of
payment by the messengers to the Master of Posts of all receipts, payment
by the Master of Posts from the receipts of the ordinary fixed wages of the
deputy postmasters (together with the cost of special expresses) and of his
own salary, and payment from the Exchequer of the balance necessary to
complete such payment. The deputy postmasters took, and retained for their
own use, the postage received on private letters, paying a percentage to the
Master of the Posts; and they had also the monopoly, which was very
lucrative, of letting horses to travellers riding post. In view of these profits
they were prepared to purchase from the Master of the Posts the office of
deputy postmaster, and sums received from that source, together with the
percentage of the postage of private letters, constituted the emoluments of
the Master of the Posts, additional to his salary. The Commons, being no
doubt aware of this, concluded that there ought to be a net revenue from the
Office, and required Prideaux to pay the sum of £5,000 a year.[32]
Witherings, who by some strange chance seems never to have been
altogether ousted from his offices, but to have retained that of Master of the
Foreign Post, died in 1651, and there were numerous claimants for the
succession to the office. The Council of State invited all persons with
claims to submit them, and in reporting on the claims, suggested the
farming of the Inland and Foreign Letter Offices. The question was put to
the House of Commons that the whole business be "recommitted to the
Council of State to take into consideration and present their opinions to the
Parliament how the same may be managed for the best service of the State
and ease of the people." The addition of the words "by contract or
otherwise" was suggested, and accepted by the House.[33] The question was
considered by a Committee, who, having found much difficulty in dealing
with the numerous claims in respect of the Foreign and Inland Letter
Offices, decided on the 7th November 1651, probably as a way out of the
difficulty, to recommend that the offices should be let to farm. The matter
was not hurriedly disposed of. On the 7th May 1653,[34] resolutions were
passed by the House of Commons asserting the State monopoly of the
carriage of letters, and directing the Committee appointed to consider the
posts to fix rates for private letters, to obtain tenders from persons for
farming the carrying of letters, and to recommend what annual sum in their

opinion the State should require in case it were thought well to let the posts
to farm.
On the 30th June 1653 the Inland and Foreign Letter Offices were let to
John Manley at a rent of £10,000 a year,[35] and thus was instituted the
system of farming, which continued until 1677 as regards the main posts,
and until the late eighteenth century as regards the bye posts. The rent
continuously increased. Shortly after the Restoration it was raised to
£21,500 a year, and in 1667 to £43,000 a year.
The rate for a single letter, which had been raised by Prideaux to 6d., was in
1655 or 1656 reduced to 3d., owing to the efforts and competition of
Clement Oxenbridge and others, who established and maintained rival
services for the carriage of letters. These "interlopers" received scant
consideration from Prideaux, and the services which they had established
were suppressed.[36] In 1657 an Ordinance of the Commonwealth
Parliament further reduced the rate to 2d. for a single letter sent for
distances under 80 miles, and 3d. for distances over 80 miles. The rates
were not, however, as low as would appear at first sight. There is the
difference in the value of money to be allowed for; and there is the further
consideration that postage was not charged according to the direct distance.
All the post roads converged on London, and there were no cross posts. All
letters from towns on one post road for towns on another post road must
therefore pass through London, and all letters passing through London were
subjected to an additional rate of postage;[37] that is to say, they were
charged the appropriate rate in respect of the distance to London, and then,
in addition, the appropriate rate in respect of the distance from London to
destination.
The Ordinance of 1657 placed the Post Office system for the first time on a
statutory basis.[38] The objects for which such an Office was required were
given as three in number: first, to maintain certain intercourse of trade and
commerce; secondly, to convey public despatches; and thirdly, to discover
and prevent many dangerous and wicked designs against the peace and
welfare of the Commonwealth. In 1660 an Act of Parliament was passed,
dealing with the Post Office.[39] Essentially it was the Ordinance of 1657,
passed as an Act to give it legal validity under the changed order of things.
The clauses relating to the use of the Post Office as a means of detecting

plots against the State were included in a modified form, and this function
was by no means lost sight of.[40] During the excitement caused by the
Popish Plot it was freely exercised.
The general farm of the posts was abolished in 1677, and the administration
of the Office undertaken by the Government, except in the case of the
smaller branch posts, in regard to which the practice of farming was even
extended in the early years of the eighteenth century.[41]
The revenue yielded by the Office continued to expand. In 1694 it had
reached £60,000; and when, for various reasons, but chiefly to provide for
the control of the Post Office in Scotland, which had been brought under the
English authorities by the Act of Union, a new Post Office Act became
necessary, the Ministers, involved in a protracted war, seized the
opportunity to obtain an increased revenue from the Office. Under William
III this had been thought of.[42]

The Act of 1711,[43] which remained for over fifty years the principal Act
relating to the Post Office, was to be an instrument of taxation. For some
fifty years the Post Office had been yielding a revenue, constant and
increasing, but nevertheless more or less fortuitous. Its functions had
always been defined as primarily to provide for the transmission of letters,
for the benefit of commerce, and for the safety and security of the kingdom,
by bringing all letters into "one Post Office settled and established in this
Kingdom," and conducted immediately under the eye of the King's
Government. The amount paid for the farm had increased with the passing
of the years, in measure with the increase of the business of the Office—not
by any change in the scale of charges, which remained as fixed in 1660.
Now, however, the Office was made a financial instrument, the proceeds of
which were to be regulated by manipulation of the rates of charge. The
results of the Act of 1711 did not fulfil the anticipations of its framers.
Provision had been made for the disposal of that increase of revenue which
was looked for: "the full, clear, and entire Weekly Sum of Seven Hundred
Pounds of Lawful Money of Great Britain" was to be paid out of the
revenues of the Post Office "towards the Establishment of a good, sure, and
lasting Fund, in order to raise a present Supply of Money for carrying on
the War and other her Majesty's most necessary Occasions."[44] This £700
was to be paid entirely from the proceeds of the increase in the rates. The

existing revenue of £111,461 a year was to be disposed of as theretofore.
All pensions and charges on the revenue were to continue, and were to have
preference over the payment of £700 a week. Of the surplus over and above
the £111,461 a year and the £700 a week, one-third part was to be at the
disposal of Parliament, the rest to be paid into the Exchequer with the
£111,461.
But the increase of revenue was so small that some of these provisions
remained for many years inoperative. The increase of rate was found
burdensome. Merchants resorted to every available means of avoiding the
additional expense.[45] A large clandestine traffic in letters grew up. The
very postboys were found carrying letters outside the mail for what fees
they could obtain. In 1710 the net revenue had been £66,822. In 1721 it was
£99,784, an increase of £32,962. After the deduction, therefore, of the £700
a week (or £36,400 a year), the payment of which had preference over all
other payments chargeable on the Post Office revenue, excepting only the
expenses of management, the actual net revenue of the Post Office available
for the purposes prescribed by the Act was in 1721, £63,384, or less than
the revenue of 1710 by £3,438. The Act provided that one-third of the
surplus of the yield of postage over and above the sum of £147,861
(£111,461 plus the £700 a week) should be at the disposal of Parliament for
the use of the public; but although the gross revenue had exceeded that sum,
there was no surplus for the use of the public, the explanation being that the
sum mentioned in the Act, viz. £111,461, was the amount of gross revenue,
which could only serve as a basis provided the cost of management
remained stationary. As a matter of fact, the cost so greatly increased that
the net revenue was not sufficient to provide the sum of £700 a week and
also a revenue equal to that obtained before 1711. As Mr. Joyce has pointed
out, the Treasury had confounded gross and net revenue.[46]
The essentially fiscal character of the rates of 1711 is evidenced by a
provision of the Act that from and after the 1st June 1743 the rates charged
under the previous Acts were to be restored.[47] But after 1743, although
they were without legal sanction, the rates of 1711 continued in operation,
and by an Act of 1763 they were made perpetual.[48]

The fifty years following the Act of the 9th of Anne were uneventful.[49]
The chief development was in connection with the cross posts; a

development which, although not having direct reference to the question of
the rates of postage, was yet of importance. At the commencement of the
eighteenth century the main system of the Post Office still centred on
London. All the main post routes radiated from London, and the great bulk
of the letters passing by post were either for or from London, or passed
through London. But there were, of course, numbers of letters which were
not sent to London at all: letters between two towns on a post road, or
letters between towns on different post roads, which could be sent direct
and not by way of London. These letters were known as bye letters and
cross post letters.[50] Since they were not handled in London, the authorities
had not the same means of checking their numbers, and the postmasters'
accounts of postage in respect of them, as could be applied in London, and
grave irregularities arose. The revenue was continually defrauded by the
failure of the postmasters to bring to account the postage on such letters. No
record was made in respect of many of them, and their transmission became
so notoriously unsafe that illicit means of conveyance were constantly
resorted to. The matter was already so serious that a special clause was
included in the Act of the 9th of Anne, providing that for the suppression of
the abuse any postmaster found guilty of embezzling the postage of bye or
way letters should forfeit £5 for every letter and £100 for every week during
which he continued the practice.[51] Even this penal clause was insufficient
to check the abuse, as owing to the unsatisfactory method of dealing with
bye and way letters there was small risk of detection in fraud.
In 1719 Ralph Allen, then postmaster of Bath, proposed to the Postmasters-
General that the management of the bye and cross post letters should be
leased to him for a term of years, and offered a rent one and a half times as
great as the revenue from the letters at that time. The offer was accepted,
and the lease, which in the first instance was for seven years, was renewed
from time to time. Allen, whose discovery was merely that of a method of
check on the receipts of the postmasters from the bye and cross letters, was
able to pay the rent agreed upon, largely to suppress the illicit transmission
of the letters, and to make a handsome profit.[52] The chief importance of
Allen's work lies, however, not so much in the fact of his rendering the bye
and cross post letters subject to effective check, as in the fact that in order to
retain his lease he, on each occasion of renewal, undertook the provision of

additional facilities. By this means a daily post was gradually extended to
almost all the post routes.[53]
In 1765 the inland rates for short distances were reduced, and a new
standard of charge was introduced. Hitherto, all charges had been regulated
on a mileage basis. For short distances they were now based on the number
of post stages. For one post stage the rate was made 1d. for a single letter,
for a double letter 2d., for a treble letter 3d., and for every ounce 4d.; for
two post stages, 2d., and in proportion for double, treble, and ounce letters.
[54]
The financial result of the change was unsatisfactory.[55]
Up to this period the mails were carried by postboys riding horse.
Notwithstanding that on all the chief roads stage-coaches were running
more expeditiously than the post-horses, the Post Office kept to the old way.
The superiority of the stage-coaches as means for the conveyance of letters
was noticed by Mr. John Palmer, proprietor of the theatre of Bath,[56] who
was so greatly impressed with the fact that he devised a complete and
definite plan for the establishment of a system of mail conveyance by
coach. The cost of the riding post (boy and horse) was 3d. a mile, and
Palmer estimated that the change could be carried out without involving any
increase of cost, especially if, as he proposed, the coaches carrying the
mails should be exempted from toll. The proposal was severely criticized by
the district surveyors of the Post Office, who reported on it.[57] At the
Treasury, however, the proposal met with a more favourable reception. Pitt
called a conference on the 21st June 1784, and after hearing the
explanations of Palmer and the criticisms of the representatives of the Post
Office, decided that the plan should be given a trial. Accordingly, on the
2nd August 1784 the first mail-coach ran. The experiment, which was
conducted on the Bath Road, proved successful, and the plan was rapidly
extended throughout the kingdom. The first coach cost 3d. a mile, the same
rate as the riding post; but ultimately the coaches proved to be cheaper than
the horse posts. In 1797 the rate was no more than a penny a mile.[58]
Almost simultaneously with the introduction of mail-coaches there was an
increase in the rates of postage, made solely with a view to increased
revenue.[59] The alteration was more or less fortuitous. In his Budget of
1784 Pitt had proposed a tax on coals which had not been well received,

and the increased postage was substituted. Palmer is said to have claimed
the credit of suggesting the substitution.[60] If so, his faith in his plan was
abundantly justified. Notwithstanding the handicap of increased rates, it
was an unqualified success, and the effect on the revenue was immediate
and considerable.
At about this time several horse and cross post mails had been molested,
and it was desired, in response to a considerable public agitation, to
establish mail-coaches on the minor posts. This would have involved heavy
cost, and as an alternative Freeling (Secretary to the Post Office, afterwards
Sir Francis) suggested that only responsible persons should be employed—
at this time the post riders, in fact as well as name, were in many instances
mere boys—and that the riders should be armed. In order to obtain funds to
meet the cost of this scheme, the rates of postage were again increased in
1797.[61] A further increase was made in 1801 in order to-provide an
additional contribution of £150,000 a year to the Exchequer.[62] The new
rates were elaborate and complicated, comprising no less than thirteen rates
for each class of letter, according to the distance of transmission. Another
increase followed in 1805, when the Post Office was called upon to provide
an additional £230,000 a year.[63] This time the increase was made in a very
simple manner, viz. by increasing the rates of 1801 in every case by 1d. for
a single letter, 2d. for a double letter, 3d. for a treble letter, and 4d. per
ounce.
All these increases, made with the avowed intention of increasing revenue,
were successful in their main object. The net revenue, which in 1796 was
£466,457, had risen in 1804 to £956,212, and in 1806 reached the sum of
£1,119,429. The fiscal results seemed, therefore, to justify the Government
in turning again and again to the Post Office when they were hard pushed to
find revenue. This must be the justification of the further increase of 1812.
[64]
The rates then established were the highest ever charged in England.
The net revenue rose slightly after their establishment, but never increased
materially. These rates continued in operation until 1839, when they were
completely swept away, and new rates based on principles fundamentally
different were established.
This was the system, due to Sir Rowland Hill, of uniform rates, irrespective
of distance of transmission, first introduced in the United Kingdom in 1839,

and since adopted throughout the civilized world, not only for inland
services, but for the international service.[65] The story of the conception,
advocacy, and adoption of uniform postage is fully told by Sir Rowland Hill
in his History of Penny Postage,[66] and need be only briefly dealt with
here. The plan itself is described in the famous pamphlet, Post Office
Reform: Its Importance and Practicability, which was issued by Sir
Rowland Hill in 1837.
The reform was directly related to the great reform movement in England of
the second quarter of the nineteenth century, and is a brilliant example of
the application of the deductive method in politics. Sir Rowland Hill was a
member of a Radical family, remarkable even in those days for its zeal for
reform. It was the ambition of all members of the family to aid as far as
possible the great movement; and all the brothers interested themselves in
the study of social and economic questions, with a view to reform and
improvement.[67] In the year 1835 there was a large surplus of revenue, and
the brothers speculated on the direction in which reduction of taxation
might best be made.[68] Sir Rowland Hill examined carefully the results of
the financial reforms which had been introduced in recent years, and found
that the effect on the revenue of reductions in the rate of tax showed very
considerable variations. While in some cases, as, for example, leather and
soap, a reduction of the duty by one-half had reduced the revenue by one-
third, a similar reduction of the duty on coffee had increased the revenue by
one-half. From this Sir Rowland Hill concluded that it was of the utmost
importance to select carefully the taxes to be reduced, and he cast about for
some guiding principle in the light of which the most suitable tax for
reduction might be discovered. This principle he deduced to be as follows,
viz. that the tax which most called for reduction was that which had failed
most to keep pace with the increasing numbers and prosperity of the nation.
[69]
Tested in this way, the tax on letters proved unsatisfactory. While in
most other departments of the revenue the preceding twenty years had been
years of expansion and progress—as might be anticipated during a period of
peace following great and exhausting wars—in the case of the Post Office
the period had been one of stagnation.

Attention had already been directed to this fact by Sir Henry Parnell.[70]
Between the years 1815 and 1835 the duty on stage-coaches had increased

from £218,000 to nearly £500,000 a year. During the same period the
revenue of the Post Office, both gross and net, had not increased at all—in
point of fact, it had slightly decreased. If it had kept pace with the increase
of population, the annual net revenue would have increased by half a
million. If it had increased in the same proportion as the duty on stage-
coaches, the revenue of 1835 would have exceeded that of 1815 by no less
than £2,000,000. These facts convinced Sir Rowland Hill that a reduction of
the rates of postage was urgently necessary; and apart from financial
considerations, the moral and intellectual results which would follow a
facilitation of intercourse appealed powerfully to a reforming Radical.[71]
Having arrived at the conviction that the Post Office offered most scope for
his zeal, he found no lack of material to work upon. A Commission of
Inquiry into the Revenue Departments had reported on the Post Office in
1829. A Commission of Inquiry on the Post Office had been sitting for some
years, and had made numerous voluminous reports. Sir Rowland Hill set to
work to make a careful study of the information contained in these reports,
and as the result of this study evolved a complete plan for the reform and
reorganization of the whole Post Office system, a plan involving the
transformation both of the theory of Post Office finance, and of the methods
of practical working.[72]
His inquiries led him to examine the cost of the Post Office service as a
whole, and its relation to the work performed by the Post Office in respect
of individual letters, or, as he termed it, "the natural cost of conveying a
letter."[73] The investigations and calculations made in this connection
elucidated a fact of first importance, viz. that the cost of the conveyance of
a letter from one town to another was exceedingly small, being on the
average no more than nine-hundredths of a penny—in the case of a mail
from London to Edinburgh the cost of conveyance was no more than one-
thirty-sixth of a penny. This fact was developed. It was shown that not only
was the cost for conveyance for the average of distance exceedingly small,
but that it did not vary with the distance. The variation was rather in the
inverse proportion to the number of letters enclosed in a mail.[74] Thus,
while the average cost of the conveyance of a letter from London to
Edinburgh was one-thirty-sixth of a penny, the cost of the conveyance of a
letter for a shorter distance was often greater, owing to the small number of
letters included in the mail. On these facts rests the whole case for

uniformity of rate irrespective of distance:[75] and they are sufficient to
demonstrate that the principle is fundamentally sound.
The proposal for a uniform rate was the outstanding feature of the plan, but
there were others of importance. It was a chief merit that the plan might be
introduced without causing any serious diminution of net revenue, and the
object of the further proposals was so to modify and simplify the working
methods of the service as to enable the increased traffic which a low
uniform rate would inevitably bring into the post to be dealt with without a
proportionate increase in working expenses.
A vast increase in the number of letters must occur if the revenue was to be
maintained, and this increase was confidently anticipated. With the existing
rates there was a very large clandestine traffic in letters outside the Post
Office, and it was calculated that a low uniform rate would effect the
complete suppression of that traffic, and attract all letters into the post. But
in order to maintain the net revenue, it was essential to simplify effectively
the methods of working. This simplification was to be secured by the
introduction of the system of prepayment, and the principle of charging by
weight.
Covers and sheets of paper bearing the revenue stamp already impressed
were to be sold at all post offices. The postage label, which has become so
characteristic a feature of post office business throughout the civilized
world, was proposed as an expedient to meet a certain exceptional case. If
any person bringing a letter to the post should not be able to write the
address on the stamped cover in which the letter was to be enclosed, Sir
Rowland Hill suggested that "this difficulty might be obviated by using a
bit of paper just large enough to bear the stamp, and covered at the back
with a glutinous wash, which the bringer might, by applying a little
moisture, attach to the back of the letter, so as to avoid the necessity for
redirecting it."[76]
Letters prepaid in either of these ways were to pass through the post as
franks,[77] i.e. without change or record. By this method a great reduction in
the work of the Post Office would be effected. Under the existing system it
was necessary to record and charge forward on the postmasters all letters
the postage of which was to be collected on delivery, and these letters

formed the vast majority. All such labour would be dispensed with. The
increase of the number of letters was to be further encouraged by the
provision of additional facilities, such as the establishment of day mails and
increased frequency of deliveries in towns.[78]
It has sometimes been thought that Sir Rowland Hill's theory included the
proposition that the increase of the number of letters varied in inverse
proportion to the reduction of rate effected, that is to say, that if the rate
were reduced by one-half, the number of letters posted would be doubled; if
the rate were reduced by two-thirds, the number of letters posted would
increase threefold.[79] This is not the case. His estimate was that with the
reduction of postage in the United Kingdom to the uniform rate of one
penny, i.e. an average reduction of seven-eighths (from about eightpence),
an immediate fourfold increase in the number of letters might be
anticipated. This estimate was framed with regard to the circumstances
existing in the United Kingdom at the time, and there is no other rule
applicable to the relation between reduction of postage and resultant
increase of postal traffic than that it is relative to the particular
circumstances of time and place. Especially, it may be said, where postage
is already low, further reduction is hardly likely to result in largely
increased traffic.
In brief, Sir Rowland Hill calculated that by the adoption of his proposals
for the modification of methods of working, the letter postage in the United
Kingdom might be reduced to the uniform rate of one penny irrespective of
distance, without causing loss to the net revenue of more than £300,000 a
year.
The pamphlet, Post Office Reform: Its Importance and Practicability, in
which the plan was embodied, was first issued privately in January 1837 for
circulation in political and official circles, to which Sir Rowland Hill had
access, partly through the celebrity of his family on account of their school
system, but chiefly through his brother Matthew Davenport Hill, then a
member of Parliament. In February 1837 the author was invited to give
evidence before the Commissioners for Post Office Inquiry.[80] The
proposals were not, however, viewed favourably by the Government, and
were resolutely opposed by the Postmaster-General and many of the high
authorities of the Post Office.[81]

Finding it impossible to impress the official mind, Sir Rowland Hill issued
the pamphlet to the public,[82] and it met with immediate, widespread, and
influential support. The Press, Chambers of Commerce, and other bodies
actively supported propaganda for the adoption of the scheme.[83] Public
meetings in support of it were held in all parts of the country, and numerous
petitions in its favour were submitted to Parliament. So strong was the
public feeling that in November 1837 the Government were constrained to
appoint a Select Committee of the House of Commons for the express
purpose of considering Sir Rowland Hill's proposals. This Committee took
a vast amount of evidence. The contentions of Sir Rowland Hill were in the
main sustained by this evidence, and the Committee recommended (but
only by the casting vote of its chairman) the adoption of a uniform rate.
They were not, however, satisfied that the net revenue would be maintained
if the uniform rate were made as low as one penny, and they therefore
recommended the rate of twopence.[84] The Committee reported in August,
1838, but no immediate steps were taken by the Government to carry out
their recommendations. The condition of the national finances was not so
healthy as in 1837, when the proposals were first broached, and they did not
improve in the following years.[85] The doubt as to the financial result of the
scheme therefore made its early adoption in the normal course unlikely. The
reform was, however, warmly taken up by the Radicals,[86] and in 1839
party exigencies enabled them to insist on the introduction of uniform
penny postage as the price of their support in Parliament.[87]

On the 10th January 1840, therefore, the reform was introduced.[88] The
new rate was one penny for each of the first two half ounces, and twopence
for each additional ounce. The results were disappointing financially. The
reduction in net revenue in the first year was one million pounds sterling
(from £1,500,000 to £500,000), instead of £300,000 as forecasted. The
number of letters, also, was doubled only, instead of quadrupled (in 1839,
82 millions, in 1840, 169 millions). But the numbers continued to increase
rapidly, in agreeable contrast to the stagnation under the old system. By
1847 they had quadrupled; by 1860 they had reached 564 millions; and the
expansion has since been continuous.[89] The gross revenue of 1839 was
equalled in 1850, and the net revenue of 1839 was reached in 1863. It has
since gone on increasing. The plan was not an immediate financial success:

neither was it a complete financial failure, as sometimes alleged.[90] The
recovery of revenue was slow, but it was constant; and ultimately the plan
has abundantly justified itself as a financial arrangement.
The changes in the British letter rates since 1840 have not been numerous
or fundamental. The limit of weight for letters, viz. 16 ounces, fixed in
1840, was abolished in 1847. In 1865 the progression of weight and charge
above one ounce was made a penny the half-ounce. In 1871 the rates were
reduced. Letters up to 1 ounce in weight became transmissible at the penny
rate; for the second ounce, and for every succeeding 2 ounces up to 12
ounces, the rate was made ½d.; and for letters weighing more than 12
ounces, 1d. the ounce, including the first ounce. In 1885 the rate of ½d. for
every 2 ounces after the second ounce was continued without limit; and in
1897, on the occasion of the Diamond Jubilee of Queen Victoria, a further
reduction of the rate for heavier letters was made. The scale of 1d. for the
first 4 ounces, and ½d. for each succeeding 2 ounces, was then introduced.
This method of effecting a reduction was dictated largely by a desire to
simplify the rates of postage. It admitted of the abolition of the Sample
Post, and of the Book Post (except as regards packets not exceeding 2
ounces in weight), and thus removed a source of confusion and loss of time
both to the staff and the public.
In recent years postal traffic of all kinds has increased rapidly. The growth
in numbers is shown by the following table:—

Total number of Postal
Year. Packets dealt with in the
United Kingdom.
1880-1 1,682,000,000
1890-1 2,623,988,000
1900-1 3,723,817,000
1905-6 4,686,182,000
1910-11 5,281,102,000
1913-14 5,920,821,000 [91]

The ordinary letter, however, remains the characteristic of Post Office
business and the sheet-anchor of postal finance. The vast proportion in point

of numbers still consists of packets of small weight.[92] In 1913-14, of a
total traffic of some six thousand million packets (including parcels), nearly
three thousand five hundred millions passed at the letter rate of postage
(less than 14 per cent. of which exceeded 1 ounce in weight), one thousand
millions at the postcard rate, another thousand millions at the ½d. packet
rate (none exceeding 2 ounces in weight). The average weight of the two
hundred million newspapers was just over 4 ounces, and of the hundred and
thirty million parcels, some 2 to 3 pounds. Of the total traffic (including
parcels), more than four thousand millions, consisting in general of ordinary
letters and postcards, were under 1 ounce in weight; and of the remaining
two thousand millions (including parcels) only some five hundred millions
exceeded 4 ounces in weight.
The Post Office, in addition to its ordinary function of providing for the
transmission of letters and packets, undertakes a number of subsidiary
services. There are, of course, the telegraphs and telephones, the money
order, postal order, and Savings Bank business, which have for many years
been an integral part of the business of the Post Office. In recent years the
Post Office has also undertaken the issue of certain local taxation licenses,
and the payment of Old Age Pensions and Army Pensions. Now it has
undertaken the sale of War Loan Stock, Exchequer Bonds, and War Savings
Certificates. Apart from the telegraphs, telephones, and Savings Bank,
however, these services form only a small part of the work of the Post
Office. While the total cost of the ordinary postal services (i.e. excluding
telegraphs, telephones, and Savings Bank) was in 1913-14 some
£17,000,000, the cost of the subsidiary services was only about a million.
The staff of officers has increased as follows:—

Year. Male. Female. Total.
1880-1 — — 80,000
1890-1 93,046 24,943 117,989
1900-1 137,807 35,377173,184
1905-6 154,351 41,081195,432
1910-11 166,073 46,741212,814
1913-14 188,794 60,659249,453 [93]

Concurrently with the increase of the number of officers, the rate of wages
has been revised on several occasions, as the result of the recommendations
of Parliamentary and other Committees appointed to consider the question
of Post Office wages. The cost of the increases of wages which have been
granted as the result of these revisions, calculated on the basis of the staff at
the dates of the respective revisions, without allowance for subsequent
growth of force, is some £3,674,950 per annum.[94] The increase of the
number of officers has, of course, increased the ultimate cost of each
successive improvement in pay and conditions of service.
The increased wages of the staff have naturally counterbalanced to some
extent the economies resulting from the large increase of business. Since the
first of these revisions, the Fawcett of 1881-2, the wages of the staff have
absorbed a larger percentage of the total revenue of the postal services,[95]
and the cost for staff per packet handled has increased from .288d. in 1880-
1 to .329d. in 1890-1, and .418d. in 1913-14.[96] During the same period the
cost of conveyance of postal packets has decreased from .131d. per packet
other than a parcel in 1880-1, to .119d. in 1890-1, and .080d. in 1913-14.[97]
The total cost of dealing with a postal packet other than a parcel has in
recent years shown a small decrease. The cost in 1913-14 has been
estimated at .520d.[98]
The gross revenue of the postal services, i.e. excluding telegraphs and
telephones, has increased from £7,130,819 in 1880-1 to £9,851,078 in
1890-1, and £21,928,311 in 1913-14. The net revenue from postal services
has increased from £2,720,784 in 1880-1 to £3,163,989 in 1890-1, and
£6,642,067 in 1913-14. The expansion of net revenue has not kept pace
with the increase in the total number of packets passing by post. Since 1880
the total numbers have increased some 3½-fold, and the net revenue some
2½-fold.[99] The relation between the gross revenue and the total
expenditure on the postal services, which in recent years has not shown any
large variation, fluctuates in the neighbourhood of 70 per cent.[100]
Note.—On the 1st November 1915, in order to secure increased
revenue for war purposes, the inland letter rate was increased to
the following:—

For packets not exceeding 1 ounce in weight 1d.
For packets between 1 ounce and 2 ounces 2d.
For every succeeding 2 ounces ½d.

Under the existing abnormal circumstances it is difficult to form
a satisfactory estimate of the result of this increase. Numerous
contrary forces are in operation. The growth of the Army and the
dislocation of private business resulting from the war have had
important effects on the number of letters posted. Large
numbers of letters are exchanged with men in the Army, but, on
the other hand, all letters from troops on active service pass free
of postage. It has been estimated that in the first five months the
new rates yielded an increased revenue of nearly half a million.
—See Postmaster-General's statement, 3rd July 1916 (Parl.
Debates (Commons), vol. lxxxiii. cols. 1231-2).

LETTER POST IN CANADA

When Canada came into British hands after the capture of Quebec, no
postal arrangements existed in the province. The population numbered only
some 60,000, excluding the Indians, and with so small a number spread
over so vast a territory it was not to be expected that any Post Office
establishment of the ordinary type could be maintained.[101] Very soon,
however, the English merchants interested in the Canadian trade urged upon
the British Government the necessity for a regular service from New York
to Quebec, and in this they were supported by the Governor of the province.
The Government instructed the Deputy Postmasters-General in America to
take steps for the establishment of the post, and they accordingly proceeded
to Quebec. There they met a young Scotsman, Hugh Finlay, who offered to
conduct a regular post between Quebec and Montreal, undertaking all risks,
for a commission of 20 per cent, on all revenue collected on the post,[102]
and, in addition, a monopoly of licensing persons to provide horses and
conveyances for the use of travellers—the old monopoly which had existed
for so long in England as a source of emolument to the postmasters. Finlay

contracted for the conveyance of the mail with a number of men, to whom
he made over the exclusive right of furnishing travellers on the route. In
addition to this privilege, these men, who were styled maîtres de poste,
were remunerated by payment at the rate of 6d. a league (2d. a mile) for
providing horses and carriages for the couriers. Between Quebec and
Montreal, a distance of 180 miles, there were twenty-seven maîtres de poste
and two post offices, viz., Three Rivers and Berthier. On the whole route,
which was not of the easiest, there was not a single inn; there were six
ferries to cross, that at Three Rivers being three miles wide, and one near
Montreal nearly three-quarters of a mile. There was a service twice a week
in each direction, and the journey occupied about forty hours, the courier
who left Quebec at five o'clock on Monday afternoon arriving at Montreal
on Wednesday morning, and the courier leaving Montreal on Thursday
evening reaching Quebec on Saturday morning.
The statutory authority for the establishment of posts in Canada, as in other
parts of North America, was section 4 of the Act of the 9th of Anne. This
Act, however, failed to prescribe for North America rates of postage for
letters passing greater distances than 100 miles. Hence, for the post from
Quebec to Montreal no legal rate was ascertainable. The rate actually
charged was 8d. for a single letter, and so in proportion for double, treble,
and ounce letters, which was not an excessive charge, seeing that the legal
charge for distances up to 100 miles was 6d. for a single letter. It proved
sufficient, however; the whole scheme was completely successful and
greatly appreciated by the colonists. To link this local post with the service
from England, the Postmasters-General at New York arranged a connecting
post to run monthly in connection with the arrival and departure of the
English packets. They realized that the number of letters likely to be carried
by such a post would be small and would not yield a revenue nearly equal
to the expenses, the more so as, in any case, a comparatively high rate of
postage would be payable on account of the great distance, and in
recommending its establishment, they suggested moderate rates of charge.
[103]

The Act of 1765 provided reduced rates of postage for North America. "The
vast accession of territory gained by the late Treaty of Peace," and the
establishment of new posts in America, for which rates of postage could not
be ascertained under the existing law,[104] made a new Act necessary, and

the rates prescribed in that Act were fixed under the enlightened principle
that moderate rates might yield increased revenue.[105] The rate which
would apply to Canada, for the greatest distances, was fixed at 8d. for a
single letter for not more than 200 miles, and 2d. for each 100 miles beyond
200 miles—double letters double rates, treble letters treble rates, ounce
letter four times the single rate, in the usual way.
In January 1774 Finlay was appointed joint "Deputy-General for the
Northern District of America" in the room of Dr. Franklin. He was allowed
to retain, for the time being, the benefits of the Post Office at Quebec,
which, in the words of the letter of appointment, he had been "so
instrumental in bringing to a degree of perfection."[106] The disturbances of
1775 in the coast colonies soon affected the post to Canada. In September
of that year, the prospect of getting mails through from Canada to New
York was so slight that Finlay was anticipating the suspension of all
communication with the rest of the world during the whole of the winter,
unless letters could be conveyed to Halifax. The couriers were frequently
held up by armed men and robbed, and by November matters had become
so serious that all postal arrangements in the province were stayed. Quebec
was besieged throughout the winter and spring. After its relief Finlay tried
to set up the posts again, but unsuccessfully, as the Governor refused to re-
establish the monopoly of the maîtres de poste, on the ground that travellers
in Canada were very well accommodated in horses and conveyances and
did not desire its re-establishment. Without it Finlay was unable to maintain
a service, and no posts existed during the remaining period of the war.
After peace had been restored, Finlay represented the matter so strongly
that the monopoly was re-established. The posts were again set up, and
Finlay was appointed Deputy Postmaster-General of Canada, Nova Scotia,
and New Brunswick. The mails for Canada were still sent by way of New
York, as before the war, but for military reasons it was important that a mail
route should be established from Halifax, the military headquarters, to run
altogether within British territory. In 1787 a fortnightly post (monthly in
winter) was accordingly established between Quebec and Halifax.[107] The
mail went by River du Loup, near the Grand Portage, where the courier
from Quebec handed over his mail to the courier from Fredericton; by the
Madawaska to the Grand Falls; thence by boat to Fredericton. A fresh

courier went by boat from Fredericton to the mouth of the St. John's River.
Here the mail was transferred to a sloop of about 34 tons burthen for
conveyance across the Bay of Fundy to Digby, whence the route lay by
Annapolis. The total distance from Quebec to Halifax was 633 miles, and
the time required for the trip varied from twenty-one to thirty-one days.
A mail route from Montreal into Upper Canada was also established, but
this was rather a military post, intended to serve the military stations and
frontier settlements. The mail was despatched only once a year and was, in
consequence, known as the "yearly express." The route followed was by the
St. Lawrence from Montreal to Matilda, Augusta, and Kingston; across
Lake Ontario to Niagara; thence to Detroit Fort, at the base of Lake St.
Clair, and across Lake Huron to Michilimackinac, at the head of Lakes
Huron and Michigan. After continuing some six years this post was
curtailed and went no farther than Niagara.[108]
In 1800 Finlay was succeeded in the deputy ship by John Heriot. The
population had now increased to 450,000, but there were only twenty post
offices in the whole of the five provinces. Heriot's patent gave him authority
to establish new routes and offices, but, in accordance with the general
policy, only when in his opinion their establishment would be likely to
benefit revenue. The rates at this time were, of course, nominally based on
the Act of the 5th George III, but as the routes had never been properly
measured, the distances on which the rates were actually based were largely
a matter of conjecture. The posts were said, however, to have paid their way
and even to have yielded a surplus revenue, which was transmitted to
England.[109]
The administration of the posts rested ultimately with the Postmasters-
General in London. The service could be extended only by their authority,
and the colonists found that the Deputy in the colonies, being bound by his
instructions from the Postmasters-General, was unable to extend and
improve the service in the manner which they themselves thought desirable.
A large number of immigrants entered the provinces, especially Upper
Canada, during this period, and settlements were springing up in remote
districts far away from the post routes. Heriot was admonished from
London that in considering the provision of new services he must look to
the revenue to be anticipated as well as to the convenience of the public,

and to adopt no scheme involving sacrifice of revenue. His instructions
forbade the opening of any post office or post route unless the anticipated
revenue was sufficient at least to pay the postmaster and courier. He found
that these restrictions prevented him from providing a service in any degree
adequate to the demands of the settlers, or indeed adequate to their real
needs. It was essential that the settlers in the remote districts should be kept
in touch with civilization. They could not be allowed to pass beyond the
reach of the Government. They must be kept in contact with the means
provided for the administration of the law. For these reasons it was essential
to provide post accommodation, although in the nature of the case it could
not be expected that a revenue sufficient to cover the cost would be
obtained. All these considerations were pressed on the Deputy, and he was
so far persuaded as sometimes, in response to urgent local representations,
to depart from his specific instructions. But such cases usually led to a
reprimand. The natural result was that the province was driven itself to
undertake by grants from the public funds the provision of many local
services which it deemed essential.
Thus grew up the anomalous system under which the colonies made large
grants in aid of the service, but were unable to exercise any substantial
control over its administration. The more important routes were self-
supporting and were controlled entirely from England. In order to obtain
extensions of the service the colonists, through the Governor, requested the
establishment of certain services, undertaking that, if the revenue derived
from these services should prove insufficient to meet the expenditure, the
balance should be made up by the colony. A regular post was established in
1801 between Quebec and York (Toronto) under a guarantee of this kind.
The colonists naturally wished to have some controlling voice in the
administration; but the Deputy, holding office under the Imperial
authorities, was not bound to concede to them any rights over the
administration of the service, however great sums they might pay towards
its maintenance—a situation which was sure to lead to difficulties. Whether
or not serious trouble occurred depended in large degree on the character of
the Deputy.[110] In later years there was considerable friction and much
irritation on the part of the colonists.
In Nova Scotia the system of grants in aid was developed to an even greater
extent than in Upper Canada. When Sir George Provost became Governor

in 1808, there were only five post offices in Nova Scotia—Halifax,
Windsor, Horton, Annapolis, and Digby—and they were all on the line of
the Quebec post. Sir George was anxious for an extension of the posts on
military rather than general grounds, and he asked the postmaster of
Halifax, John Howe, to establish several new routes. Howe was inclined to
favour the projected posts, but Heriot realized that they could not be
expected to yield a revenue equal to their cost, and he informed the
Governor that his instructions from England prevented compliance with the
request. Sir George Provost thereupon induced the Legislature to
appropriate a sufficient sum for the establishment of the posts. The
Governors of New Brunswick and Prince Edward Island followed this
example, with the result that a large part of the Post Office establishment in
these provinces was outside the jurisdiction of the Imperial authorities.
This development is noteworthy. It has always been found in Canada that
for a large part of the country the circumstances are such that a postal
service adequate to the necessities of the inhabitants cannot be self-
supporting, but the Legislature has never hesitated to make grants from
general taxation in order to provide means of communication. In the early
days the question of post office communication was intimately bound up
with the question of general means of communication, and was usually
treated in connection with the making or maintenance of roads. For a long
period the posts in Canada were maintained not solely for the transmission
of letters, but to a great extent on account of collateral advantages. They
were largely military in character, and were identified with the military
routes.[111]
In 1816 Daniel Sutherland was appointed Deputy Postmaster-General for
Canada, Nova Scotia, and New Brunswick. Under his administration the
development of the service was pushed forward, and so far as was found
consistent with the interests of revenue, new offices and routes were
established. But in 1820 there were still no more than forty-nine post offices
in the whole of British North America, distributed thus: in Lower Canada
twenty offices, in Upper Canada nineteen, in Nova Scotia six, in New
Brunswick three, and in Prince Edward Island one. The progress was from
this time somewhat more rapid. By 1824 the number of offices in the
Canadas alone had risen to sixty-nine, and during the next ten or fifteen

years the growth, both of Post Office accommodation and of Post Office
revenue, was more rapid than the growth of population.
The settlers were not, however, completely satisfied. Their complaints were
to some extent laid against the administration of the office—they claimed,
for example, that gross overcharges of postage were being made, through
incorrect computation of the distances on the post roads—but they became
more and more dissatisfied that the control of the whole of the service and
its officers should rest with the Postmaster-General in England. The
question was, of course, to a large extent political, and one only among the
several general grievances of the colonists at this period, which caused so
much anxiety to the Home authorities.
As early as 1819 a movement began in Upper Canada to obtain the
transference of the administration to the provincial authorities. A
Committee of the House of Assembly considered the abuses of the existing
Post Office system, and on presentation of their report, in March 1820, the
House passed a resolution condemning the administration of the service.
The question continued to receive a good deal of attention. The chief
complaint of the colonists was that a net revenue was year by year
transmitted to London. There is no doubt that a balance was paid over to the
Imperial administration year by year, but it is questionable whether any of
this balance was a net revenue on the local service.[112] The colonists chose
so to regard it. They advanced the contention that the legal right of the
Imperial Government to levy postage rates in the colonies at all was
doubtful, because postage was a tax; and the raising of money by authorities
outside the colonies was a direct infringement of their own constitution,
which provides that "no tax shall be levied on the people of this country
except such as shall be appropriated for the public use and accounted for by
the Legislature,"[113] and of the Declaratory Act, in which Great Britain
disclaimed the right to impose upon a colony any duty, tax, or assessment,
except where necessary for the regulation of commerce.[114] The
Government were advised by the Law Officers that it would not be wise to
contest the point, and proceeded to consider a measure for placing the
establishment on a more satisfactory basis.
If the Home Government could have agreed to hand over the entire
administration of the office in British North America to the local

Legislatures, there would have been an end of the matter. But such a course
would have left the interior provinces at the mercy of those on the seaboard
as to the conveyance across those colonies of the mails to and from
England. Although there was no desire to continue the appropriation to the
Imperial revenue of any surplus which might arise on the service in North
America, it was felt to be highly desirable that the Imperial Government
should retain control over the administration of the office, particularly in the
matter of fixing the rates of postage, since by that means excessive charges
for transit across other provinces would be prevented. But in controlling the
administration from London there was the difficulty that any alteration of
the rates of postage by Act of the British Parliament might be an
infringement of the rights of the colonists under the Declaratory Act of
1778. Accordingly, all intention of direct legislation by the British
Parliament was abandoned, and in 1834 an Act was passed,[115] repealing
the Act of the 5th George III, on which the whole Post Office establishment
of North America rested, conditionally on the passing by the Legislatures of
all the provinces of a Bill for the regulation of the colonial Post Office
service, which had been prepared in London. This Bill provided that the
ultimate control of the whole service in British North America should
remain in the hands of the Postmaster-General in London, but that the rates
of postage should be fixed by the local Legislatures, and any surplus of
revenue over expenditure should be divided between the provinces.
Nova Scotia was prepared to accept the Bill, but only with modifications
which would have prevented its adoption as the basis of a general service
throughout the five provinces. New Brunswick and both Upper and Lower
Canada rejected the Bill. The Assembly of Lower Canada substituted a Bill
of its own.[116] The Legislative Council were indisposed to accept the
substituted Bill,[117] and in March 1836 adopted an Address to his Majesty,
explaining that in their view it would be exceedingly difficult, if not
impracticable, to secure the co-operation between the separate Post Office
establishments of the several provinces essential for the attainment of the
purpose of the original measure, and they pointed for illustration to the
United States, a country where, notwithstanding a keen regard for State
rights, the whole control and management of the Post Office department
had been delegated to the Federal Government. Since the Post Office
establishment was a most effective means for strengthening the ties

connecting the several provinces, as well as an essential aid and
convenience of commerce, they deemed the best course to be the retention
by the Imperial Parliament of the exclusive power of legislating for the
control and management of the Post Office in all parts of the Empire. In
March of the following year, there being still no prospect of the adoption of
the Bill by the provinces, the House of Assembly and Legislative Council of
Upper Canada adopted a joint Address to his Majesty, substantially identical
with that adopted a year earlier by the Legislative Council of Lower
Canada. It was clear that little progress was to be anticipated.[118]
In 1840 a Commission was appointed. Its attention was directed more
especially to the faulty administration of the office and the excessive rates
of postage. To remedy the former, and to make the administration more
amenable to local control, they suggested placing the Deputy Postmaster-
General under the control of the Governor-General in all matters which did
not conflict with the authority of the Postmaster-General in England. As to
postage, they were satisfied that the rates at that time in operation were too
high. They considered that the rates should be such as would yield a
revenue sufficient to meet the expenses of the department, and no more; and
in their view, if the revenue improved after the establishment of such rates,
which there should be no difficulty in calculating, the proper course would
be either to grant further facilities or further to reduce the rates. There
should not in any case be a net revenue of any magnitude. The
Commissioners themselves made an estimate of the rate which should fulfil
the requirements they had detailed. In so doing they proceeded on much the
same lines as Sir Rowland Hill in his pamphlet Post Office Reform: Its
Importance and Practicability. They had no difficulty in answering the
demand for penny postage in British North America, a demand based on its
successful inauguration in England. The circumstances in the two countries
were not comparable. England, small and densely populated, the first
industrial and commercial nation of the world, could not in such a matter be
compared with a country of vast extent, sparsely peopled and almost
entirely agricultural. While Sir Rowland Hill had been able to show that in
the case of letters conveyed for comparatively long distances in England the
actual cost of carriage was only one thirty-sixth part of a penny, the
Commissioners found that in British North America the actual average cost
of conveyance was no less than 3d., and the actual average total cost of

dealing with letters no less than 5½d. Uniformity of rate at a penny, which
had been justified in England on existing facts of the service, could
therefore find no similar justification in North America.
There could, however, be no doubt that with a reduction of the rate, which
then averaged 8½d. a letter, the number of letters would be very greatly
increased and the cost per letter consequently reduced. The public were in
the habit of making use of every available means other than the post for
forwarding their letters. Steamboats which carried a mail would carry
outside the mail many times the number of letters that were enclosed in the
mail. Teamsters, stage drivers, and ordinary travellers all carried large
numbers of letters, and in cases where no such opportunity offered, persons
had been known to enclose the letter in a small package, which could be
sent as freight at less charge than the rate of postage on the single letter. If,
therefore, all these letters, and the many additional letters which would be
written if transmission were cheap and easy, were sent in the mails, the cost
of the service would not be by any means proportionately increased, and the
average cost per letter would be very greatly reduced. It would still,
however, have been considerably more than a penny. Their conclusions
were less satisfactory in regard to the rates actually recommended. They
proposed a graduation according to distance of no less than five stages,
starting with as short a distance as 30 miles. For this the rate was 2d., and
the scale rose to 1s. for distances over 300 miles. The only virtues of the
rates were that they were lower than those in operation in the United States
and were to be charged by weight.[119]
The chief recommendations of this report were carried out under the
authority of the Colonial Office. The weight basis for determining rates of
postage was adopted, and the Deputy Postmaster-General's authority was
restricted. His privilege of sending newspapers free of postage was also
taken away, and in compensation he was given a salary of £2,500 a year—
personal to himself, and high on account of his long enjoyment of the
lucrative newspaper privilege. That for his successor was fixed at £1,500 a
year. The agitation in the provinces in regard to the Post Office continued
during the succeeding years, but it was less vehement and concerned itself
more with the question of rates than with questions of administration.

In 1842 a member of the headquarters staff of the British office (Mr. W. J.
Page) was commissioned to examine and reorganize the service in the
Maritime Provinces, with the object more especially of introducing such
measures of reform as should bring the expenditures of the department in
those provinces within the revenue. His reports throw a flood of light on the
state and methods of the service.[120] He found extraordinary anomalies in
the methods of charging postage, in the methods of remunerating the
Deputy-Postmasters, the couriers, and the Way Office keepers, and in the
relations subsisting between the Post Office and the local Legislatures. The
financial arrangements of the office were in a condition which can only be
described as chaotic. Postage was, of course, chargeable on the total journey
of the letter. But in Nova Scotia letters were charged with a new rate at each
office through which they passed, and postage became an excessive charge
on all letters which passed through two or three offices. Deputy-Postmasters
were paid a percentage, usually 20 per cent., on the amount of postage
collected by them, but their chief remuneration in many cases arose from
the right which they exercised of franking all their private and business
correspondence, a consideration which they had principally, if not
exclusively, in view in taking up their appointments. Many of the deputies
were lawyers or other professional men. The privilege was nominally
subject to the limitation of four single letters, or two double letters, or one
packet of an ounce by each mail; but this limitation was very generally
disregarded. To such an extent was this the case that one-half of many mails
consisted of free letters.
Couriers received fixed wages, which were either paid by the Deputy
Postmaster-General out of the general funds of the department, or from
grants in aid, given by the Legislature specifically for the support of the
respective routes. Way Office keepers received no remuneration from the
department: in many instances the existence of the Way Offices was
unknown at Halifax. This was explained in great part by the manner in
which such offices were usually established. A courier travelling a
particular line of road received from the despatching postmaster a number
of "way letters," or letters for persons living on or near his route. Partly for
his own convenience, and partly for the accommodation of the persons
addressed, the courier would leave packets of the letters at some house on
the route, and the occupant would collect the postage on behalf of the

courier. In course of time the courier induced the postmaster to make up the
letters for this particular place separately, and to open a private account with
the householder, who thus became an agent for the postmaster, and the
house became a Way Office. The keepers of these Way Offices usually
charged a fee of 2d. on each letter received or sent. The Post Office was not
in any way concerned in the transactions, except that in some cases, where
it was not always possible for the Way Office keeper to obtain his fee in
advance, the practice grew up, with the co-operation of the Deputy-
Postmaster, of charging forward the unpaid Way Office keeper's fee as
unpaid forward "postage." Some of the Way Office keepers also claimed
and exercised the same rights of franking as the Deputy Postmasters. Others
were paid on the basis of a percentage of 20 per cent. of the postage
collected; and in such cases some of the keepers still collected their fee of
2d., and some did not.
When letters were sent from one Way Office to another—as was frequently
the case, since often there were several Way Offices in succession—a fresh
fee was charged; and a letter might be charged four or five twopenny fees
and no postage, the fees all being appropriated by the Way Office keepers
and nothing finding its way to the Post Office revenue. Indeed, the Post
Office department received scarcely any revenue from the Way Offices, and
no sort of control over them was even attempted.
The House of Assembly was in the habit of establishing post routes, and of
voting increases in the salaries of existing couriers, the resulting expense of
which was to be paid by the Post Office. The action of the Legislature was
often taken on the presentation of memorials from persons interested, or on
the initiative of a member specially interested in Post Office matters with
some axe to grind. The Legislature would vote, say, £10 or £20, for a
courier to some remote place, for which the number of letters was
negligible—perhaps a dozen in a year, perhaps two a week and a few
newspapers. The resolution of the House would then be forwarded to the
Postmaster-General, who by virtue of his delegated authority established the
route, the cost over and above the amount voted by the House being drawn
from Post Office funds. The whole system was permeated with jobbery, and
the House used to become more than usually active in these matters as the
elections approached. In Cape Breton, in 1841, the expenses of the couriers
amounted to some £604, and the revenue, after deducting the commission

of the three postmasters in the island, was some £308—the explanation
being that the member for the island was one of the leaders in Post Office
matters in the Legislature.
Internal correspondence was at this time literally nonexistent, many of the
couriers conveying only newspapers (which in general went free), and fee
letters (that is, letters charged only with the Way Office keeper's fee, and no
postage). Except in five towns (Halifax, Yarmouth, and Picton in Nova
Scotia; and St. John and Fredericton in New Brunswick) there was no
provision for the delivery of letters except at the post office window. In
those towns, delivery was made in the first instance at the post office, but
all letters which were not called for within a short time after the arrival of
the mail, were sent out for delivery throughout the town by letter carrier. An
additional charge of 1d. per letter was made by the carrier, and retained by
him as his remuneration. In some cases 1d. was charged also for the
delivery of newspapers; in others this penny was charged only where the
receivers could be induced to pay; and in some cases newspapers were
delivered free. At Halifax two letter carriers were employed, and their total
weekly earnings were estimated at £4 10s., indicating 1,080 as,
approximately, the weekly number of letters and newspapers received. At
Fredericton a charge of 1d. was made on letters and on newspapers, but the
amount was taken by the postmaster, who paid a weekly wage to the carrier.
The postmaster estimated his annual receipt at about £19 10s.,
corresponding with a weekly average of 90 letters and newspapers
delivered in Fredericton. He paid the carrier £14 10s. per annum.
Up to 1827 there were no internal posts in Prince Edward Island. The only
post office in the province was at Charlottetown. In 1827 the Legislature
resolved to establish an inland service, and appointed couriers to travel
weekly for the conveyance of letters. Way Office keepers were also
nominated at various places. A uniform rate of 2d. for single letters, and ½d.
for newspapers published in the island, was fixed for transmission within
the island, and, in consideration of the whole expense being borne by the
Provincial Treasury, the Deputy Postmaster-General of Nova Scotia and
New Brunswick agreed to the retention by the province of the net revenue.
The Way Office keepers received as their remuneration 20 per cent. on the
postage collected, with the privilege of franking for transmission within the

island. The province made a small grant, at first £20 per annum and later
£30, in aid of the administration of the posts.
The first wish of the Home authorities was to bring the expenditure within
the revenue, and after he had been in the colony some two months Mr. Page
submitted a scheme which should remove the deficit in Nova Scotia, then
over £1,000 a year.[121] This scheme, which was not lacking in boldness,
proposed the discontinuance of no less than twenty-four couriers, and
reduction of the frequency of the mail in two other cases, involving towns
of some importance.
On the 6th July 1843 the Post Office of New Brunswick was separated from
that of Nova Scotia and a large number of services abolished. Following on
these drastic measures, the New Brunswick Legislature, in 1844, adopted a
joint Address to his Majesty, praying for redress. They asked for a reduction
of letter rates, for the abolition of newspaper rates, and for the application
of all surplus revenue to the extension of facilities for inter-provincial
communication, adding that in consideration of the introduction of these
changes the Legislature would guarantee to provide such sums as might
from time to time be necessary to defray the expenses of the department.
The reply of the Colonial Office was that the prayer of the petition could
not be granted, since other provinces were involved; but that, so long as the
province guaranteed the charges, the proposal as regards newspapers, taken
by itself, was unobjectionable.
The Home authorities, seeing that in Nova Scotia and New Brunswick the
service still showed a deficit year by year, remained indisposed to introduce
reduced rates; but when Lord Clanricarde was appointed Postmaster-
General there was a change of policy. Lord Clanricarde came to the
conclusion that the time was ripe for a reduction of rates in British North
America, although he was convinced that such a reduction would entail
heavy postal deficits in all the provinces. It would be for the provincial
Legislatures to make good these deficits, and he concluded it was therefore
expedient that the full control of the service should be handed over to the
provincial authorities, subject to certain conditions imposed with the view
of preventing friction between the provinces over the transit across the sea-
board provinces of mails for or from the interior.

Lord Elgin, Secretary of State for the Colonies, suggested to the Governor-
General[122] that one or two members of the Executive Councils of Canada,
Nova Scotia, New Brunswick, and Prince Edward Island should meet at
Montreal to discuss the question and mature a plan, which could be
submitted to the respective Legislatures, for the assumption by the
provinces of the administration of the Post Office. A conference was
arranged, and a plan for the establishment of a uniform system throughout
the British North American Colonies elaborated.
The conference made clear that in the repeated remonstrances against the
"transfer of assumed surplus receipts" to the revenue of the British office
there was no desire on the part of the provinces to make the Post Office a
source of revenue, or, indeed, to call into question the prudent management
of the Imperial Government; but that the remonstrances were prompted by a
growing conviction of the great importance of an efficient postal system as
a factor in their social and commercial welfare, and as "a means in a new
country of extending civilization." The provinces were impressed by the
great social and moral benefits which had followed the introduction of
cheap postage in the Mother Country, and were anxious to extend to their
own land the benefits of the system, which had already been introduced by
their great neighbour. The delegates were satisfied that the most suitable
rate would be 3d. the half ounce, uniform, irrespective of distance; but,
thinking it likely that some of the provinces might be unwilling entirely to
disregard distance, they recommended that an option be suggested for any
province that wished so to do to charge double rates for distances greater
than 300 miles. They recommended the establishment throughout British
North America of a uniform system and rate of postage, with as little local
modification as the circumstances of the various provinces might demand.
But for two main reasons they were opposed to a common administration:
(1) they considered that the control by each province of its postal
establishment would be a powerful aid to economy in administration, would
prevent imprudent extensions of postal accommodation, and would prevent
also any feeling of jealousy between the provinces with regard to the
application of the funds of the establishment to the extension of services in
the respective provinces; (2) they thought the various provinces would be
more likely to accept a system under local control, each province defraying

the entire cost of its service, and retaining all postage collected within its
limits, whether prepaid or post-paid.[123]
The Home authorities accepted the recommendations of the conference,
subject to a few slight modifications in non-essentials, and an Act, passed in
1849, authorized provincial Legislatures to establish posts within their
respective territories, but gave them no authority over the posts between the
colonies and places abroad.[124]
The transfer of the Post Office systems to the provincial Governments was
accomplished in 1851.
Delegates from all the colonies met to consider the arrangements to be
made for conducting the office under the new conditions. With the example
of England before them, as before the world, the delegates were anxious for
a uniform rate, and for a low uniform rate. They realized, however, that
conditions vastly different from those prevailing in England prevailed in
British North America. With their great distances and their thinly settled
districts, with the rigours of the American climate and the generally poor
state of the roads, it could not be anticipated that rates which had been
found successful in England, with its comparatively small area and dense
population, with its less difficult climate and its better facilities for
intercommunication, would prove equally successful. In the end a
compromise was adopted—uniformity of rate, but a rate moderately high,
viz. 5 cents.[125]
A period of great development ensued, especially in the Maritime
Provinces. Under the stimulus of the reduction of the rate to the new
uniform charge of 5 cents per ½ ounce, in place of a charge graduated by
distance which had averaged over 8d. a letter, the number of letters
increased so rapidly that in four years the gross revenue had recovered its
former level.[126] But in both Nova Scotia and New Brunswick the account
regularly showed a heavy deficit, in partial explanation of which there was
the fact that both Governments carried newspapers in the mails free of
charge. In Canada, with a larger number of commercial communities, the
results were somewhat better. But even there the accounts showed a deficit
until 1859. From that year there was an annual surplus until 1865, when the
heavy charges for conveyance of the mails by railway began to tell.

These conditions continued until the confederation of the British North
American Colonies in 1867. The control of the Post Office was within the
powers assigned to the new Dominion Government. The Government was
desirous of not falling behind other countries in the provision of Post Office
services, and it was necessary for political reasons to take advantage of
every available means for facilitating intercommunication between the
different parts of the Dominion. Shortly after confederation, therefore, a
Bill to establish and regulate a Federal Dominion Post Office was brought
before the Dominion Parliament.
A reduction of the letter rate of postage from 5 cents to 3 cents per ½ ounce
was proposed, and a rate of postage on newspapers. In some of the
provinces newspapers had previously been carried by the posts free of
charge; and the establishment of a rate of postage for them was to some
extent bound up with the reduction of the letter rate, since with the lower
rate for letters the free transmission of newspapers would have proved so
great a strain on the revenue, that either the Government would have been
compelled to make larger grants in aid, or services would have to be
withheld in districts where it was desirable they should be provided. Some
members were disposed to think the better course would have been to retain
the old rate for letters and to allow newspapers to pass free, as had long
been the practice in the Lower Provinces; and the imposition of a rate on
newspapers was characterized as a tax on the dissemination of public
intelligence and a retrogressive step towards old and exploded abuses.[127]
Other members desired to follow the English example and reduce the letter
rate to 2 cents, the equivalent of a penny; but this was deemed
impracticable on account of the different conditions under which the Post
Office was conducted in Canada, where the mails were carried very long
distances through a sparse population.[128] In the United States, where the
circumstances were more nearly comparable, the rate was still 3 cents. With
a rate of 3 cents in Canada, as proposed, it was anticipated that there would
be a considerable deficit, but that the deficit would soon disappear.[129] It
was alleged that there was no demand for a reduction and that everybody
was willing to pay 5 cents; but the real objection was not to a reduction in
the letter rate per se. The objection arose from the assumption, fairly well
grounded, that the reduction was only possible if accompanied by the

establishment of a postage on newspapers, to which a number of members
were strongly opposed. The rate of 3 cents for ½-ounce letters was,
however, adopted. In three years the yield of postage at 3 cents surpassed
the former yield at 5 cents.[130]
In 1898 a Bill for modifying rates of postage was introduced. The main
propositions of the Bill were (1) to reduce the letter rate to 2 cents per
ounce, and (2) to impose a postage on newspapers. Since 1867 there had
been several changes in newspaper postage, and for about nineteen years
newspapers had been passing through the post in Canada free of any charge
for postage.[131] The postal service was at this time being carried on at some
loss to the general Dominion revenue, and, as in 1867, the proposal to
charge postage on newspapers was made to counterbalance any loss of
revenue which might result from the reduction in the letter rate of postage.
It was hoped that with this counterbalance any such loss would soon be
made good, and that, indeed, the Post Office would become a self-
sustaining department.[132]
The arguments in Parliament were almost identical with those of 1867,
when the previous similar proposals as regards the letter and newspaper
rates were before it. Stress was, however, now laid on the contention that
letter-writing was the pursuit of the wealthy, and of business and
commercial men, who were well able to pay for their correspondence, while
the newspapers were sent mainly to the farmers of the country, who wrote
few letters. The Government were proposing at this time to raise a million
dollars by a tax on sugar, a course denounced as an imposition by the
Government on the poorer classes, to whom sugar is a necessity, while the
reduction of postage would present the wealthier classes with some
$650,000 a year.[133]
The reduction was carried, and the 2-cent rate has proved successful. The
gross revenue recovered within four years.[134] The number of letters has
largely increased, especially in recent years, largely, no doubt, in
consequence of the growing commercial prosperity. The total number,
which in 1876 was some 41 millions, had in 1913 increased to 633 millions.
The financial result has also proved satisfactory. The Post Office service in
Canada as a whole in 1913 showed a profit of some $1,200,000, and there is
no doubt that the greater part of this profit was derived from letters.

Note.—In 1915 a war-tax of ½-d. was imposed on all letters and
postcards. On the assumption that the numbers posted would not
be appreciably diminished, the increase of revenue was
estimated at $6,000,000 a year, and this estimate has been
realized.

LETTER POST IN THE UNITED STATES OF AMERICA

The New England colonies had not been long established when the public
authorities first took cognizance of the arrangements for the distribution of
letters. In 1639 the general court of the Massachusetts Bay colony made an
order for the establishment of a service in respect of letters for or from
places abroad. A house-to-house delivery of letters received from abroad at
the low uniform rate of 1d. would seem to have been contemplated.[135] At
various intervals during the latter half of the century, Post Offices were
established in most of the other colonies—in Virginia in 1657, in New York
in 1672, in Connecticut in 1674, in Philadelphia in 1683, and in New
Hampshire in 1693.[136] These Post Offices were set up in the various
colonies by legal enactment, but they were in general local and municipal in
character. In the circumstances of the case they could at that time hardly
have been otherwise. The colonies were independent of each other in
administrative matters, and seldom acted together for any purpose. The
population relatively to the extent of the colonies was extremely small, the
settlements were scattered, and the roads were mere trails.[137] In general
there was very little intercourse between the various colonies. Such
intercommunication as was carried on usually went by means of coastwise
vessels or by occasional travellers. The one exception was a post route from
New York to Boston, established in 1672 to go monthly. The system
established in Virginia in 1657 was of a primitive character, being merely a
requirement that every planter should furnish a messenger to convey the
mail to the next plantation, under penalty of forfeiting a hogshead of
tobacco in default.

In 1688, by an Order in Council, the establishment of a Post Office in
Jamaica, and such other of his Majesty's plantations in America "as shall be
found convenient," was authorized. On the 17th February 1692 the Crown
granted a patent to Thomas Neale (then Master of the Mint) vesting in him
the American post, with full power and authority to erect post offices in the
chief parts of the American colonies "for the receiving and despatching of
letters and pacquets, and to receive, send, and deliver the same under such
rates and sums of money as the planters shall agree to give." It was no light
matter to obtain the acquiescence of all the colonies in the exercise of
general rights as regards the Post Office in North America, especially as
they had previously been free to make their own arrangements in this
respect. Neale was himself never in North America, but his deputy there,
Andrew Hamilton, who was a very capable man, was able not only to
secure the acceptance by the colonies of a general postal system under
Neale's patent, but to obtain from some of them small grants in aid.
Most of the colonies passed Acts authorizing the establishment of Post
Offices under the provisions of the patent; and the principle of postal
monopoly was introduced in these enactments.[138] The General Assembly
of Virginia authorized a Post Office in the colony, believing such an office
to be of "generall concernement and of great advantage for the increase and
preservation of trade and commerce therein, for thereby speedy and safe
despatch may be had."[139] The rates of postage were as follows:—

Every letter not exceeding For distance not exceeding 80
3d.
one sheet English miles
Ditto two sheets " 6d.
Every pacquet of writs 12d. per ounce
"
and deeds weight.
Every letter not exceeding Above distance of 80 English
4½d.
one sheet miles
Ditto two sheets " 9d.
Every pacquet of writs
" 18d. per ounce.
and deeds

The rates established in the other colonies were similar but not identical.

The new postal service under the authority of the patent was commenced on
the 1st May 1693. A post was set up from Portsmouth, New Hampshire, to
Boston, Saybrook, New York, Philadelphia, Maryland, and Virginia. Five
stages were fixed, and a rider was appointed to each stage. In summer the
service was performed weekly, and in winter fortnightly. At the
commencement, as may be readily understood, the conditions were
somewhat difficult.[140] But with the growth of population and commerce,
conditions improved. The service to the South was for many years subject
to general irregularity and temporary suspension, especially at times of
flood.
The Post Office in America has from its first establishment as a general
system, as distinguished from the merely local or municipal posts, had to
reckon with two factors which have been of great importance in relation to
all the main services—a vast extent of territory and a sparse population. The
rates were higher than those in operation in England, but at first, and for
many years, the revenue was insufficient to defray the expenses. The
finance of the American Post Office consequently differed fundamentally
from that of the English office.
Neale was required by the terms of his patent to render an account at the
end of three years of the receipts and expenditures of the American post.
His first account was not, however, rendered until 1698. It showed that the
expenses up to May 1697 were £3,817, and the receipts £1,457, there being
thus a loss of £2,360. The account was accompanied by a statement
prepared by Hamilton, explaining the great advantages to the trade and
commerce of the colonies, as well as to their security, which the Post Office
provided; showing how necessary in consequence was the continuance of
the office, and recommending that definite rates of postage for the whole
territory be fixed by statute. Other regulations for the conduct of the system
were also suggested, as the existing arrangement, involving such serious
loss to the patentee, could not be continued indefinitely. Neale contented
himself with a brief remark to the effect that whenever his Majesty should
see fit to take the conduct of the posts into his own hands, he (Neale) would
be glad to surrender his patent—of course, for a consideration.[141]
The Postmasters-General opposed the suggested increase of rates on general
grounds, their experience having taught them that "the easy and cheap

corresponding doth encourage people to write letters, and that this revenue
was but little in proportion to what it is now, till the postage of letters was
reduced from sixpence to threepence."
Neale died shortly afterwards, and his rights in the patent were transferred
to his creditors, who were Hamilton himself and an Englishman named
West. Hamilton died in 1703, and his widow carried on the posts for some
two or three years. In 1706 she and West endeavoured to obtain an
extension of the term of the patent; so that, although the posts had been
conducted for some years at heavy loss, both by Hamilton and by his
widow, the conditions had improved, and there was now reasonable
anticipation of a profit from the office. The view of the Postmasters-
General, however, ultimately prevailed, and in 1707 the patent was bought
back for the Crown for the sum of £1,664. When, a few years later, a
general Act of Parliament was found necessary, the opportunity was taken
to place the American posts on a definite statutory footing.[142]
The preamble recites that posts had at great charges been established on the
mainland of North America through most of her Majesty's plantations and
colonies, and the Postmasters-General were authorized to establish a "Chief
Letter Office" in New York, and other chief offices at some convenient
place or places in each of the colonies in America, and to appoint deputies
for the "better managing, ordering, collecting, and improving the Revenue"
granted by the Act. Rates for the transmission of letters between England
and America were fixed, and detailed rates for transmission between
specific towns within the North American colonies. The rates between
London and America were 1s. for a single letter, 2s. for a double letter, and
so on. For transmission within the colonies the rates were, broadly, for
distances under 60 miles, 4d. the single letter, 8d. the double letter, and so
on; distances under 100 miles, for a single letter 6d., and so in proportion
for double and treble and ounce letters.
These rates were, in general, higher than those which had been fixed by the
colonies under the Neale patent, but for several years they did not produce
sufficient revenue to meet expenses. In 1722 the Postmasters-General were
for the first time able to say that in the future the Post Office in North
America, even if it yielded no net revenue, would no longer involve a
charge, and there was a good prospect of a profit. The Act of 1765 provided

rates for the longer distances and made a general reduction of nearly 30 per
cent. The rates now became, for a single letter, for conveyance for any
distance not exceeding 60 miles, 4d.; from 60 to 100 miles, 6d.; from 100 to
200 miles, 8d.; for each additional 100 miles, 2d.[143] In the intervening
period the chief events had been the appointment of Benjamin Franklin, in
1737, to be Postmaster of Philadelphia, and in 1753, to be joint Postmaster-
General for British North America, and the acquisition of Canada in 1763.
The latter event had, indeed, been one of the reasons assigned for the
passing of the Act of 1765.[144]
Under Andrew Hamilton the posts had run only along the coast, the great
main route extending from Portsmouth, N.H., through Boston and New
York to Maryland and Virginia. Under his son, John Hamilton, who
succeeded him in the office, the posts were pushed inland as occasion
offered or circumstances demanded, and for these extensions John Hamilton
adopted the principle of establishing routes in those cases where the postage
was sufficient to maintain them. On such a basis the system could not,
however, be very largely developed. The circumstances of the country made
any great extension impossible, and in 1766 the posts still went mainly
along the sea coasts.[145]
Franklin was dismissed in 1774. The Crown Post Office was continued in
North America, but about this time a competing system arose. For some
years there had been friction in the colonies between the authorities and the
publishers of newspapers. The anomalous English system of the distribution
of newspapers free by post by certain favoured individuals had been
introduced in America. The favoured officials were the American
Postmasters-General, and for that reason the office was much sought after
by publishers. Both Franklin and Hunter, who were joint Postmasters-
General (Franklin from 1753 to 1774, and Hunter from 1753 to his death in
1761), were printers, and Franklin's dismissal is sometimes attributed to a
desire on the part of the British Government to hamper the distribution of
his publications, and so restrict their influence. Great efforts were at this
time made by the Crown authorities in America to prevent the
dissemination of ideas contrary to the British ascendancy. As early as 1757
the Governor of Pennsylvania endeavoured to prevent the publication of
improper intelligence in newspapers, and suggested that special instructions

should be given to the Postmasters-General. The feeling against the
newspapers grew with the developments of the years that followed, and by
1774 much trouble was being caused by the Crown Postmasters to the
publishers of newspapers. Many were toning down their comments in order
to retain the privilege of free transmission, but some began to look for other
means of distributing their papers. William Goddard of Baltimore, publisher
of the Maryland Journal, suggested the establishment of "an American Post
Office on constitutional principles," and visited various colonies in the early
part of the year 1774 with the object of enlisting support for his project. He
received a good measure of approval, and on the 30th April 1774
subscriptions were invited from the public towards the establishment of an
American Post Office. The scheme of this Post Office was that
subscriptions should be invited for its establishment and maintenance, and
"for the necessary defence of post officers and riders employed in the
same"; and that the subscribers in each colony should appoint a committee
from among themselves, whose business should be to appoint postmasters
at places where offices had hitherto been kept or might be judged necessary,
"and to regulate the postage of letters and packets, with the terms on which
newspapers are to be carried."[146]
Meantime the committees of safety and the Assemblies of the various
colonies made certain provision for the transmission of mails, both within
and between the colonies. In May 1775 the New York Committee appointed
a sub-committee to inquire of the postmaster, Mr. Foxcroft, the reason for
the recent discharge by him of the post riders. The postmaster's explanation
was that the last four mails between New York and Boston had been held up
and violated on the journey, and he had discharged the post riders on the
ground that it was no longer safe to send them with mails. The committee
thereupon themselves immediately arranged for the despatch of mails from
New York, and a few days later issued a notice "to acquaint the publick that
a constitutional Post Office is now rising on the ruins of the parliamentary
one."
In the course of the next few months several provincial congresses passed
resolutions establishing Post Offices in the respective colonies.
Massachusetts fixed rates of postage at 5¼d. for a single letter for not more
than 60 miles, and increased rates for greater distances. The whole matter
was at the same time under the consideration of the Continental Congress

sitting at Philadelphia. Goddard had, from the first establishment of the
constitutional Post Office, expected Congress to assume control.[147] In
May, Congress appointed a committee to consider the matter, and on the
26th July, having received the committee's report, agreed to resolutions
providing for the establishment of a Post Office. Benjamin Franklin, who
had been a member of the committee, was unanimously chosen to be the
first Postmaster-General. It was provided that the remuneration of the
deputies should, in general, be 20 per cent. on the sums they collected, the
rate which had usually been paid under the parliamentary system.[148]
Postage of letters was to be 20 per cent. less than those appointed by Act of
Parliament. It was feared that such rates would prove too low, and the
proceeds of the office be insufficient to support the necessary riders; and as
people were in general well satisfied with the rates lately paid, or at least
had made no complaints regarding them, the lowering of the rates was
deferred.[149]
The parliamentary post continued for some years, concurrently with the
constitutional post, as the new independent Post Office was called. On the
7th October 1775 a debate arose in Congress as to the expediency of
stopping the "parliamentary or ministerial posts." The stopping of the post
was desired chiefly as a means for hindering the correspondence of their
enemies. Inaction in the matter was advocated by some who professed to
find the royal post of great convenience; and by others who, although
desirous of seeing the parliamentary post stopped, thought it unnecessary to
take active measures against it, since it would soon cease in any case.
On Christmas Day, 1775, the Secretary to the Post Office in New York
issued a notification to the public that, in consequence of the decision of a
provincial convention at Annapolis not to permit the parliamentary post to
travel through the province, that mail would be discontinued, and the letters
held at New York at the disposal of the persons to whom they were
addressed. The parliamentary post did not, however, altogether die. As late
as 1779 the Secretary in London wrote to the Deputy-General at New York
that the Postmasters-General were glad to find that a number of letters were
being brought to the Post Office to be delivered, and as they hoped that
method would be continued, the deputy would, no doubt, soon have
sufficient funds to pay the expenses of the establishment. But in 1780 the

Postmasters-General were concerned to find that the whole postage would
not defray the cost of management, a circumstance attributed to the fact that
the mails were often seized on arrival and carried first to the headquarters of
the Army. In consequence of this, a great part of the letters were never
delivered at all. Very little postage could be collected, and the Postmasters-
General addressed strong representations to Lord George Germain, his
Majesty's principal Secretary of State.[150]
In 1776, in view of the great necessity, for the safety of the colonies, that
means should be provided for the frequent and rapid transmission of
intelligence, further dispositions with regard to the posts were made by the
Congress. Riders were appointed for every twenty-five or thirty miles on
the several post roads. They were required to proceed through their
respective stages three times a week. They were to set out immediately on
the receipt of the mail and were to travel "by night and by day, without
stopping," until they had delivered the mail to the next rider. It was found
that the revenue produced by the existing rates of postage fell far short of
the expenses, and on the 17th October 1777 the rates were raised by 50 per
cent. The difficulties of the administration continued, and various
committees of inquiry were appointed. In April 1779 one of these
committees recommended the doubling of the rates, a course which met
with approval from patriotic Americans.[151]
Even this increase was not sufficient. In October of that year there was a
balance of £375 18s. 6d. due to the Postmaster-General, and arrears of
£17,666 1s. 3d. to the post riders. For the discharge of these liabilities and
for the continuance of the functions of the office a draft on the Treasurer
was authorized. In December 1779 a further grant was found to be
absolutely necessary in order to maintain the service, and the sum of
$30,000 was voted.[152] The establishment of express riders which had been
maintained in conjunction with the postal service was at the same time
abolished, and the rates of postage raised 20 per cent. on those paid in 1775.
But the cost still outran the revenue, and in May 1780 sums amounting to
$100,000 were voted in aid of the service. The finances of the posts became
involved in further difficulties through the general depreciation of money,
and Congress found it necessary in December 1780 to make good the

depreciation on the pay of post riders, and to raise their nominal pay to
double the sum received before the war.[153]
Several minor changes of the rates of postage were made in this period. In
December 1780 the Congress fixed the rates on letters at half the rates paid
at the commencement of the war: and in October 1781 at the actual rates
charged at the commencement of the war. But, whatever the rates, during
the war they never produced sufficient revenue to meet expenses, and the
controlling factor in the administration of the service was the necessity for a
means of circulating the earliest intelligence of the movements of the
enemy, and of their ally, in order to make the best disposition of their own
forces.
By the Articles of Confederation Congress was vested with the sole and
exclusive rights and power of establishing a Post Office for the United
States; and, deeming "the communication of intelligence with regularity and
despatch from one part to another of the United States essentially requisite
to the safety as well as the commercial interest thereof," in 1782 revised all
the regulations made theretofore in respect of the Post Office, and reduced
them to one Act. The Postmaster-General was required to cause the mail to
be carried with all care and despatch at least once in every week to and
from each of the stated post offices, and was given a monopoly of "letters,
packets, or other despatches." Postmasters were to be paid such commission
as the Postmaster-General might think their services merited, not exceeding
20 per cent. of the postage collected by them. Rates of postage on single
letters were fixed as follows:—

Distance. Rate.[154]
Not exceeding 60 miles 1dwt. 8gr.
Exceeding 60 miles, not exceeding 100 miles 2 " 0 "
Exceeding 100 miles, not exceeding 200 miles 2 " 16 "

And so on, advancing 16 grains for every hundred miles.
For all letters for or from Europe by packet or despatch vessels, the charge
was 4 dwt. The rates were doubled for double letters; trebled for treble
letters; and a packet weighing an ounce was charged equal to four single
letters, and in that proportion if a greater weight. In the event of a surplus of

Post Office revenue over expenses, the Postmaster-General was required to
pay the amount to the Treasurer of the United States "until the sums of
money heretofore advanced by the United States for the support of the
General Post Office, with the interest thereon at 6 per cent. per annum,"
should be repaid, after which any such surplus was to be devoted to the
establishment of new post offices or other improvements of the service. If
the necessary expenses were found to exceed the revenue, the excess was to
be paid to the Postmaster-General by the Treasurer of the United States.[155]
Cross posts were farmed in much the same way as the cross posts and bye
posts had been farmed in England,[156] and the farmers were bound by
contract not to charge rates in excess of those fixed by the ordinance.[157]
After the adoption of the Constitution an Act of the Constitutional Congress
became necessary. The President, in recommending to Congress the
provision of the Post Office and post roads on a liberal and comprehensive
scale, referred to the political importance of such a service as aiding the
diffusion of a knowledge of the laws and proceedings of the Government,
[158]
a consideration which was paramount in determining the attitude of the
United States Government towards the posts. It was held to be a first duty
of the Government to afford every possible means for the dissemination of
intelligence—general intelligence for the information and education of the
people, and more especially political intelligence for the education of the
people as citizens of the Republic. They were making, it was their
legitimate boast, a tremendous experiment in politics. They were essaying
to demonstrate to the world whether a people had the genius to govern
itself, whether democracy and the republic were abstract political ideas
only, or whether they could be made actual living things. The English
Commonwealth had failed. The French Revolution had come after their
own and was still in doubtful case. They could therefore neglect no means
likely to strengthen the foundation of their own Republic, and in this view
must consider seriously the question of providing effective means for the
enlightenment of the sovereign people on all matters pertaining to the
executive Government and the Legislature.[159] In order to secure the
dissemination of such intelligence members of Congress were given
extensive powers of franking both letters and newspapers.

On the question of rates, opinion in Congress was divided. Although at the
time the gross revenue of the Post Office was small, some members
anticipated an increase sufficient to yield a net revenue, as in England and
most other European countries; whilst others, with more wisdom, pointed
out the vital difference in the case of America on account of "its great extent
and uncultivated state, as well as from a thousand other causes."[160] The
new rates were based on eight zones of distance. For distances under 30
miles the charge for single letters was 6 cents; for distances over 450 miles
the charge was 25 cents; every double letter, double rates; every triple letter,
triple rates; and every packet weighing 1 ounce avoirdupois, the rate of four
single letters for each ounce.
The rates for letters fixed by the Act of 1792 continued some thirty years,
except for slight modifications in 1799 and 1816, and except for a brief
period at the time of the war of 1812-14 with Great Britain. The
Government then attempted to obtain an increased revenue from the Post
Office, and the rates of postage were increased 50 per cent. The effect on
the revenue and on the business of the country was, however, so disastrous
that the increased rates were maintained only for about a year.[161]
In 1825 the laws relating to the Post Office were codified. The codifying
Act placed on the Postmaster-General the duty of establishing such post
offices, and appointing such postmasters on the post roads as should appear
to him expedient, and of providing for the carriage of the mail on all post
roads that were or might be established by law,[162] with such frequency as
he should think proper, "having regard to the productiveness" of the routes,
the means of the department, and other circumstances. Errors and
irregularities crept into the service; but they were for the most part the result
of "the representations and pressing solicitations of the citizens," sustained
by members of Congress from almost every section of the country, of the
extension of the franking privilege, of the desire of the head of the
department "to extend the benefits of mail facilities and stage-coach
accommodations to every portion of the community," and of legislation
extending the transportation of the mail over unproductive routes. The
deficits which resulted were not regarded altogether as an evil, because the
public had greatly benefited by the measures which had produced them.[163]

Despite the solicitude of Congress the revenue failed to recover, and in
1837 and several succeeding years showed a deficit.
Sir Rowland Hill's pamphlet Post Office Reform: Its Importance and
Practicability attracted attention in America, and as early as 1839 the
question of applying the principle of uniformity of rate to the American
service was under consideration. The rate proposed was not, however, 2
cents, the equivalent of a penny, but 5 cents. Sir Rowland Hill himself
expressed the opinion that owing to the widely different circumstances
penny postage might not be applicable to the United States, but that, as the
American people did not look for a revenue from their Post Office, a low
general rate might be feasible.[164]
Although a low and uniform rate was not immediately adopted, the example
of Great Britain had great influence.[165] There was considerable public
agitation in favour of reduction of rates, and in many respects the
circumstances resembled those obtaining in England before the reform. The
high rates of postage led to constant and widespread evasion, advantage
being taken of all available private means for the transmission of letters,
and an association formed in New York to work for the adoption of reduced
postage held meetings in the large cities. In 1844 the finances of the
department were in a more nourishing condition. For four years the service
had been able to maintain itself. The state of the public Treasury had
prevented any material change in previous years, but as difficulties under
that head had ceased, the Government recommended the introduction of
low rates—gradually, in order to prevent any serious dislocation of the
finance of the department.[166] A statute was accordingly passed which,
while not introducing uniform postage, went a great way in that direction.
There were to be only two distance charges, viz. for distances not exceeding
300 miles, or greater than 300 miles, respectively. The new rate for ordinary
letters was 5 cents for distances not exceeding 300 miles, and 10 cents for
any greater distance. This statute also introduced the principle of charge by
weight instead of by sheets, the half-ounce being taken as the unit weight.
[167]

The reduction resulted in so great a fall in the revenue that in the first year
at the reduced rates there was a deficit of between one and two million
dollars. In calling attention to this deficit, the President, in his Message to

Congress, said that no principle had been more generally acquiesced in by
the people than that the Post Office should sustain itself, but Congress had
"never sought to make it a source of revenue except for a short period
during the last war with Great Britain." At the same time the service should
not become a charge on the general Treasury, and it would be necessary
either to curtail the existing service or so to modify the Act of the previous
March as to improve the revenue. As curtailment of service was out of the
question, revision of the rates was recommended.[168]
But the rates were not revised. Revision in an upward direction was, indeed,
hardly feasible. The public agitation for low rates continued after the
passing of the Act of 1845. Many citizens were convinced that the system
already adopted in England might be introduced in the United States. The
benefits which had resulted in England in the way of commercial, social,
and moral betterment were largely dwelt upon. The chief demand was for a
uniform rate, which now meant simply the abolition of the increased charge
for distances over 300 miles. There was, of course, Sir Rowland Hill's
calculation in regard to cost of conveyance, which showed the futility of
any attempt to make distance the basis of charge; and the further
consideration that the actual cost of transit for each letter sent in a mail
varies not in accordance with the distance travelled, but inversely as the
number of letters contained in the mail. Moreover, it was not considered
just that the letters of the people of the populous Eastern States should be
taxed in order to provide unremunerative mail services to the remote and
newly settled Western States.[169]
Under the old high rates the revenue had not increased in proportion to the
increase of population, but since the reduction of 1845 the increase was so
much more rapid that even with the reduced rates the revenue was greater
than ever before. The Government preferred rates of postage which were
too low to rates which were too high, arguing that in the former case the
great mass of the people would benefit, whilst in the latter case the benefits
would extend only to a few.[170] The need for some further reduction was
well illustrated by the fact that the ordinary charge for transporting a barrel
of flour from Detroit to Buffalo was at this time the same as the charge for
carrying in the same conveyance a letter weighing half an ounce, viz. 10
cents.

In 1851 an Act reduced to 3 cents the rate of postage on letters not going
over 300 miles, with a fourfold charge on Pacific mails, on account of the
great expense incurred by the department. It was estimated that the expense
of such mails was four times as great as in the case of ordinary mails, but
the proposal met with opposition.[171]
In 1863 mail matter was classified in three groups: (1) letters, (2) regular
printed matter, (3) other miscellaneous matter. The charge for letters (first-
class mail matter) was made 3 cents a half ounce irrespective of distance.
The rate was reduced to 2 cents a half ounce in 1883, in deference to the
wish and determination of the public, supported by a very decided vote in
Congress. It was anticipated that the revenue would not suffer severely, but
that, as in the case of the earlier reductions, there would be an increase in
the number of letters. It was also anticipated that many letters sent unsealed
at 1 cent would be transferred to the sealed post, thus yielding an additional
cent. The number of groups or classes of mail matter had been increased to
four in 1879, and the department was now asked to consider whether by
rearranging the third and fourth class matter additional revenue could be
obtained from such matter in order to diminish the deficiency resulting from
the reduction of letter postage. The department was unable to suggest any
method for achieving this object; but the contemplated reduction was not
delayed. The condition of the Treasury was good, "there being money
enough to meet any deficiency, even if it were as large as the maximum
($8,550,000)," estimated on the basis of the number of letters then passing
by post without allowance for any increase.[172] The actual loss of revenue
consequent on the reduction was only $1,660,000. A large stimulus was
given to general correspondence, and, as anticipated, to the use of the sealed
letter in place of postcards or unsealed circulars, whereby the department
reaped considerable profit. In 1885 the allowance for weight was raised,
and the rate became 2 cents for each ounce or fraction of an ounce.
Since that date the rate has not been changed, although from time to time
proposals have been made for a reduction to 1 cent. The public and the
department realize that the 2-cent rate is immensely profitable. It not only
sustains the service for letters: it enables the department to carry the heavy
burden of both the second-class matter and the expensive rural delivery
service, both of which involve heavy deficits, and still to show only a

comparatively small, though fluctuating, deficit.[173] As early as 1890 the
question of 1 cent letter postage had attained considerable prominence.
Many newspapers were advocating the reduction, and numerous
associations and conventions had declared for it. The Postmaster-General,
Mr. Wanamaker, himself declared that great numbers of the people believed
in 1 cent postage and wanted it, and that the existing rate yielded a large
profit which would permit of a reduction of letter postage if it could be
devoted to that purpose.[174] In 1891 Mr. Wanamaker expressed the view
that in time not only would 1 cent postage be successfully demanded, but
that the time was not far off; although he himself thought that many other
improvements and extensions ought to be provided before such reduction
was made, and that it would not be just and fair to the service, upon which
much effort had been spent in order to make it self-supporting, to heap upon
it a burden of millions from which it could not recover for years.[175]

The question was by no means lost sight of.[176] With the department
showing a deficit in most years, pressure could not be brought to bear for a
reduction of postage which could only result in throwing a heavy charge on
the public Treasury. Should, however, the department succeed in its efforts
to obtain a higher rate of charge on second-class matter, and such higher
charge results as satisfactorily to the revenue as the department anticipates,
there can be little doubt that reduction of letter postage would soon follow.
[177]

LETTER POST IN FRANCE

The Roman posts in France disappeared in the confusion which followed
the incursions of the barbarians. Charlemagne repaired the roads to
Germany, to Italy, and to Spain, in the early part of the ninth century, and
established on them a system of relays; but with the passing of the
Carlovingian Empire these arrangements fell into decay. The feudal system
which arose after the break-up of the Empire was little adapted for the
encouragement of posts. Its tendencies were rather towards disintegration
and isolation. Although some of the services survived, there was for

centuries no general system of posts in France.[178] During this period the
chief means of communication were provided by the monasteries, which
maintained regular intercourse between their various establishments
scattered throughout France, Spain, Germany, and other countries; by
travelling merchants, and by journeymen.
When a regular service of posts was again established in France, it was
provided, not by the State, but by the University of Paris, which in the
twelfth and thirteenth centuries increased in importance and renown, and
attracted large numbers of students from all parts of France, and from
foreign countries. In order to provide a means of communication between
the students and their homes, the University obtained from the King
authority to employ for the purpose messengers, to whom were accorded
certain special privileges. Thus, in 1296, the messengers of the University
were exempted from payment of tolls, or of fees for entry into towns. At
first they travelled on foot, but at a later date on horseback or by carriage.
The system developed regularity and rapidity, and in the fourteenth and
fifteenth centuries was employed, although without authority, by the public
generally.[179]
This service continued until 1720, when the privileges of the University
were suppressed, monetary compensation (120,000 fr.) being paid from the
revenue of the posts.[180]

An ordinary postal service was re-established by Louis XI in 1464.[181]
Relay stations were set up on the main routes, four leagues apart. At each
station four or five horses were provided by the postmasters, who were
required to convey the royal despatches without special remuneration. For
conducting the royal couriers from stage to stage, however, payment was
made at the rate of 10 sous for each stage for every horse.
In 1527 the postmasters were given the exclusive right of furnishing horses
for the use of couriers. In order to provide accommodation for travellers, a
system of relays was established in 1597, in addition to the ordinary posts.
[182]
The stages were fixed at distances varying from twelve to fifteen
leagues, and the charge for a horse was 20 sous for each stage. This system
was amalgamated with the posts in 1602, and the functions for which the

relays had been established were exercised by the posts until after the
Revolution. They were definitely abandoned to private enterprise in 1797.
The transmission of ordinary letters for private individuals was not at first
contemplated,[183] but it became common for the royal messengers to carry
letters for the public. The conveyance of private letters was first definitely
provided for by the State in 1576. In that year a special system of
messengers was established, whose function was to convey legal documents
between the Parliament and the inferior courts, and was limited to the
period during which Parliament was sitting. These messengers were
required to carry letters for private individuals at the following rates:—

For a single letter 10deniers
For a packet of three or four letters 15 "
For packets of letters weighing an ounce or more 20 "

irrespective of distance.[184]
Under Richelieu the ordinary posts were given a regular organization. Fixed
days of departure and arrival were appointed; offices were established in the
towns; and in 1627 the first general table of rates was issued.[185]
Previously the rate was fixed mutually between the couriers and the senders
or receivers of letters.[186]
For single letters the tariff of 1627 prescribed rates of 2 sous for
transmission between Paris and Dijon, and 3 sous for transmission between
Paris and Lyons, Paris and Bordeaux, Paris and Toulouse. For letters
composed of more than one sheet, but less than ½ ounce in weight, the rate
varied from 3 to 5 sous; and for larger packets the rate was from 5 to 8 sous
per ounce. In 1637 the posts were given the monopoly of the carriage of
letters.[187]
In the first years the posts had been a charge on the State, but at about this
time they were let at farm, and proved a fruitful and growing source of
revenue to the State. By 1672 the annual rent of the farm had risen to
1,700,000 livres, and in 1791, the last year of the farm, the net revenue was
about 12,000,000 fr.

A new tariff was established in 1676, as follows:—

Distance. Letters Packets.
Single. With Envelope.Double. Per ounce.
Less than 25 leagues 2 sous 3 sous 4 sous 6 sous
From 25 to 60 3 " 4 " 5 " 9 "
From 60 to 80 4 " 5 " 6 " 12 "
Above 80 leagues 5 " 6 " 9 " 15 "

The progression for distance was in decreasing proportion.
In 1703 the rates were raised mainly in order to provide funds to meet the
expenses of the wars of Louis XIV. Two reasons were assigned: the
necessity for increased revenue, and the necessity for remedying certain
defects in the existing rates, in regard to the distances and the progression
of weight—the charges should be proportionate to the actual distance
traversed by the couriers; and the existing rate of charge for ounce letters
was therefore unjust, because it required at least six single letters to make
up a weight of 1 ounce.[188]
As a matter of fact, the new rates fixed in 1703 did not vary exactly with
distance. The number of zones was doubled, and the distances were
reckoned according to the number of stages, and the routes actually
followed by the couriers. The charge for a single letter varied from 3 to 10
sous.
These rates remained in force until 1759, when a variety of causes led to a
further increase of rates. The Seven Years' War had made an increase of
taxation necessary; there had been a depreciation of money, and an increase
in the cost of all commodities, which had resulted in an increase of the
expenses of conducting the posts. Under the tariff of 1759 the eight zones of
1703 were maintained, and the rate for single letters varied from 4 to 14
sous, with an additional rate of 1 sou for all letters enclosed in an envelope.
The principle of charge according to weight was introduced for letters
weighing less than 1 ounce, which up to this time had been charged only
according to the number of sheets. Double letters weighing more than ¼
ounce and less than ½ ounce, were rated at 7 sous for the first zone, and for
the other zones a "rate 2 sous less than the ordinary rate for double letters."

Packets were charged by the ounce, and the rate per ounce was four times
that for a single letter. As with the tariff of 1703, distances were calculated
according to the route actually followed by the couriers.
No further modification of the rates was made until after the Revolution.
The lease of the posts was due to expire on the 31st December 1791, and it
was decided that the Legislature should rectify the tariff before the date at
which the posts would revert to the State.[189] A rectification was
accordingly announced by the decrees of the 17th-22nd August 1791. This
revision slightly increased the rates of 1759. The initial rate of 4 sous for
single letters circulating within the same département was retained; the rate
for letters circulating in the same arrondissement was fixed at 3 sous;
between départements the rate was increased, and varied from 5 to 15 sous,
according to distance of transmission; and the number of zones was
increased to eleven.[190]
Distances were no longer to be reckoned according to the length of the
route actually traversed, but from point to point as the crow flies. The points
were not, however, the actual points of posting and of delivery. In each
department a point was fixed upon, and the rate for all letters posted or
delivered in the département was calculated as from that point; so that for a
given weight the same rate was payable on all letters exchanged between
the same two départements. This system, though comprising a very large
number of rates, was much simpler than the earlier systems. Any one town
or village now had only 82 rates for each step in the scale of rates, whereas
under the previous system a special rate must be calculated for every other
town or village in France. To assist the application of this tariff, a map
showing the central point fixed upon for each of the 82 départements, and
the distances from each central point to all others, was prepared and
supplied to every post office in France.
The tariff of 1791 also abolished the method of charge according to the
number of sheets, and substituted the simpler method of charge according to
weight alone. The maximum weight for a single letter was fixed at ¼ ounce,
and for heavier letters the rates were—

From ¼ oz. to ½ oz. 1½ times the rate for a single letter
" ½ " ¾ " twice "

" ¾ " 1 " 3 times "
" 1 " 1¼ " 4 times "

and so on, the increase being one single rate for each ¼ ounce increase of
weight. The rate for letters circulating within the same town remained 2
sous an ounce.
This tariff continued in operation only for a short period. In these troubled
times the public services fell into complete disorder, and the control of the
posts by the Government did not prove a success. When in farm the rent
had been comparatively large; but under State management, even with the
increased rates of 1791, the finances were altogether unsatisfactory. In 1791
there had been a profit of 12 millions. Soon there was a deficit: in 1793 it
was found necessary to allow 4 millions in aid. Further increases in the
rates followed. In 1795[191] they were made 2 livres 10 sous, 5 livres, 7
livres 10 sous, or 10 livres, according to distance, but, like most other very
high postage rates, failed of their purpose. Instead of increasing revenue,
they almost destroyed correspondence. Transmission by private means
became widespread.[192] Other circumstances—the general insecurity of the
times, and the violation of the secrecy of letters by officers of the
Government—contributed to this development. At the end of six months the
rates were lowered to 3, 5, 7, and 9 decimes, according to distance, but
these rates were still high. The posts were reconstituted under the Consulate
and the Empire, and further minor changes introduced, the object held in
view in all these changes being chiefly to secure a revenue sufficient to
meet the expenditures of the service.
The last tariff under the old system of charge according to distance was
introduced in 1827.[193] The number of zones, which in 1810 had been
increased to fourteen, in order to provide for the extended territory resulting
from the French conquests, was reduced to eleven. The rates ranged from
20 centimes to 1 fr. 20 for single letters, and the weight limit for a single
letter was fixed at 7 grammes. Distances were reckoned as the crow flies. In
1829 a postal service was established in the rural communes, and an
additional rate of 1 decime imposed on all letters received or delivered in
the communes.[194] This surcharge was abolished in 1846. As in England,
the charges imposed on letters sent for considerable distances were

exceedingly heavy. The charge on a letter from Paris to Marseilles,
weighing 15 grammes, was no less than 2 fr. 20.
Attention was soon directed to Sir Rowland Hill's proposals for the reform
of the English system. Before the reform had been introduced in England,
the French Government were urged to improve the French service on the
lines proposed by Sir Rowland Hill. In July 1839 M. Lherbette, member of
the Chamber of Deputies, suggested the introduction of a Government
measure, and in this he met with considerable support. The Government,
however, contented themselves with remarking that it would be better to
await the result of the projected reform in England.
In the following years the question was frequently raised in the French
Parliament, on the Budget, or on reports and petitions, and there was
considerable public feeling in favour of the reform. In 1843, 65 conseils
généraux presented petitions in favour of reduced postage. In 1844 M. de
St. Priest made a proposal to reduce the number of zones to two, and to fix
the rate of postage at 20 centimes for distances up to 40 kilometres, and 30
centimes for greater distances. A parliamentary Commission, appointed to
examine this proposal, made an estimate of the actual cost to the Post Office
of the transmission of letters, and found that while the cost of a letter going
40 kilometres (postage 20 centimes) was 9·75 centimes, the cost of a letter
going 900 kilometres (postage 1 fr. 20) was 14·75 centimes. The
Commission reported in favour of a uniform rate of 20 centimes, but the
proposal was not adopted. Other proposals for the introduction of a
reformed system were made in February 1846 and January 1848.
It was left to the Republican Government of 1848 to introduce the reform.
[195]
The National Assembly had under consideration at the same time two
propositions for effecting the reform—that of M. de St. Priest, and that of
the Government itself, both proposing a uniform rate of 25 centimes for
single letters. These propositions were referred to a parliamentary
Commission, of which M. de St. Priest was a member, and the report of the
Commission, which recommended the reform, was adopted by the
Assembly.
The Government Bill to give effect to the recommendation of the
Commission was opposed in the National Assembly, mainly on the ground

that the benefit of the reduction of rate would accrue almost entirely to the
business and commercial interests and not to the general public; and on the
ground that a letter was a parcel, and should be charged like any other
parcel, according to its weight and according to the distance transmitted.
The Government's justification for the proposal rested chiefly on the moral
and social benefits which would result,[196] and they contended that if, as
the opposers of the reduction had argued, commercial letters comprised
seven-eighths of the total number of letters passing by post, such an
extraordinary fact itself did not show that advantage from reduced rates
would accrue only to business interests. It showed the injustice of the
existing rates, and would never have existed if the postage on letters had not
been higher in France than in any other country in the world. The
Commission had, moreover, made a calculation of the actual cost of
conveying and delivering letters, which showed that the average cost per
letter was from 10 to 12 centimes.
The Government estimated that the number of letters would double in the
first year (i.e. would increase from 55 millions[197] to 110 millions), and the
result would therefore be a diminution of 3,125,000 fr., or 6 per cent. of the
total receipts. This would represent the total loss, since the Minister of
Finance assured the Assembly that, after the most minute and persistent
inquiries, he had received from the postal administration definite statements
that no increase in expenses would be caused by the increase in the number
of letters—a result explained by the fact that the increase of traffic would be
appreciable only in certain large towns; in other places the result would
simply be that the postmen would each have a few more letters to carry.
Moreover, under the new system the manipulation of correspondence would
be much simplified and facilitated.[198]
Frédéric Bastiat proposed to the Assembly, as an amendment, a postage of 5
centimes on letters up to 10 grammes, and 1 fr. for packets from 10 to 100
grammes. He said that the transmission of thought, of communications
between men, was the very essence of society, from which arose wealth,
business, civilization, and taxes themselves. Consequently, to him it
appeared an anomaly to place a tax on such communication.[199]
On the economic aspect of the question he contended that a rate of 5
centimes would provide sufficient revenue to meet the expenses of the

service.[200]
The Government were not convinced, and maintained their original
proposal, which was carried. The new rates were—

Letters not exceeding 7½
20 centimes
grammes
From 7½ grammes to 15
40 centimes
grammes
From 15 grammes to 100
1 fr.
grammes
1 fr. for each 100 grammes, or fraction of
Over 100 grammes
100 grammes

The special rates for local letters were continued, viz.—
Letters "de Paris pour Paris" not exceeding 15 grammes, 15
centimes; Letters circulating in the limits of the same post office
not exceeding 15 grammes, 10 centimes.
The reform, which took effect on the 1st January 1849, was much less
sweeping than the reform of 1840 in England—the initial rate was 20
centimes, corresponding to a twopenny rate—and the results were naturally
less striking in France. They were nevertheless quite considerable. The total
number of letters posted increased from 113,500,000 in 1848 to
148,600,000 in 1849, an increase of 31 per cent., compared with increase of
122 per cent. in the first year in England. The gross revenue from letters and
other packets fell from 48,816,861 fr. in 1848 to 36,582,009 fr. in 1849, a
decrease of 11,234,852 fr. The net revenue fell from 16,960,773 to
6,862,920 fr. Thus there remained a substantial surplus.
Both the gross and net revenue recovered in much less time than in
England, as might have been expected, since the falling off had not been
nearly so great. Moreover, in 1850, on account of financial stress,[201] the
initial uniform rate was raised to 25 centimes, and the rate for letters of
from 7½ grammes to 15 grammes, to 50 centimes. The result of this was a
set-back to the total numbers, which were only 148,500,000 in 1850, but an
improvement in the gross and net revenue. By 1853 the net revenue had

reached 17,176,229 fr., and by 1854 the gross revenue had reached
50,019,801 fr.
In 1854 the initial rate for single letters was again reduced to 20 centimes,
and the change was immediately reflected in the total number of letters. In
1852 the number was 167,100,000, and in 1853, 170,400,000, an increase
of 2 per cent. In 1854 the number was 195,900,000, an increase of 15 per
cent. over the number for 1853.
Minor modifications were made in 1861 and 1862. The next important
change followed the war of 1870. It was necessary to increase existing taxes
wherever possible, and to impose fresh taxes, in order to meet the heavy
charges on the national exchequer resulting from the war. The possibility of
obtaining an increased revenue from increased rates of postage was not
overlooked. In 1871 the Government presented a Bill for the purpose, solely
as a fiscal measure.[202]
New rates as follows were established:—

Letters not exceeding 10
25centimes
grammes
From 10 to 20 grammes 40 "
From 20 to 50 grammes 70 "
for each 50 grammes, or fraction of
Over 50 grammes 50 "
50 grammes

For local letters not exceeding 15 grammes the rate of 15 centimes was
continued.
The results of this increase of rates are somewhat difficult to determine with
any degree of precision. Other circumstances affected the number of letters,
such as the loss of Alsace-Lorraine (an industrial province), the
establishment of postcards in 1873, and the reduced means of the people by
reason of increased taxation. The number of letters, which in 1869 was
313,360,723, was in 1872 only 292,466,678, and the figures for 1869 were
not regained until 1877. If the numbers are adjusted by reckoning the loss
of Alsace-Lorraine to have resulted in a decrease in numbers proportionate
to the numbers of its population, that is, one twenty-third of the total

population of France, and adding the normal increase of 9 millions a year,
the number in 1872 would have been 325 millions, whereas it was in point
of fact 292 millions. The reduction was even greater in the following years.
In 1873 the total number fell to 285,350,341.
The financial result was no more satisfactory. The revenue in 1869 was
60,989,454 fr. In 1872 it had risen to 72,615,276 fr., an increase of 20 per
cent. only, while the rates had been raised 25 per cent. for letters from office
to office and 50 per cent. for local letters. In 1873 the yield was less. It was,
indeed, little more than would have resulted from the old rates if the normal
increase of numbers under those rates had continued, although it may be
doubted whether this would have been the case in view of the heavy
financial strain imposed by the war of 1870. In any case, the financial result
of the increase of rates, which pressed heavily on commercial and social
intercourse, was extremely small.[203]
But if the rates were higher in France than in other countries, there were yet
some aspects in which the French service was in advance.[204] Compared
with England, for example, the uniform rate covered a much greater extent
of territory, and a daily delivery of letters was afforded to every hamlet, and
even to every isolated house, throughout that greater territory.[205] This
service was provided by a body of 19,010 rural postmen, the number of
rural postmen in England at this time being only 6,000. Facilities for the
posting of letters were also more extended in France: the number of
posting-boxes was 45,000, as compared with some 22,000 in the United
Kingdom.[206]
It was always desired to withdraw the increase of 1872 as soon as the
financial situation would allow. This course was hastened by the
establishment in 1874 of the Universal Postal Union, of which France
became a member. The international rate for ordinary letters adopted by the
Union was 25 centimes. As a result the internal rates of France were much
higher than the rates for letters posted in France for places in other countries
of the Union. Such a situation could not continue, and in August 1875 the
internal rates were reduced. The new rates were:—

Letters not exceeding 15
25centimes
grammes

From 15 to 30 grammes 50 "
From 30 to 50 grammes 75 "
for each 50 grammes, or fraction of
Over 50 grammes 50 "
50 grammes

The special local rates were retained.
The letter rate still remained comparatively high, and in the following year
numerous proposals were put forward in Parliament for a reduction. In
November 1876 the Government proposed the reduction of postage on
ordinary letters to 20 centimes, and on postcards to 10 centimes, the special
rates for local letters being continued. These proposals were referred to the
Budget Commission, who expressed the opinion that the time had arrived
for the introduction of complete uniformity of rate,[207] and recommended a
uniform initial rate for letters of 15 centimes for 15 grammes, and a uniform
rate of 10 centimes for postcards.
Further consideration of the proposals was interrupted by the dissolution of
the Chamber. In the next session, M. Caillaux, Minister of Finance, adopted
the report of the Commission, and in April 1878 the rate for letters was
reduced to 15 centimes for each 15 grammes, or fraction of 15 grammes.
The general rate was thus brought to the level of the local rate, which now
disappeared.
The results of this reform were eminently satisfactory. The total number of
letters, which had during the years 1872 to 1877 increased by only
4,365,412, or some one and one-third per cent. per annum, increased from
318,659,158 in 1877 to 403,853,626 in 1879, or 26 per cent. in two years,
and from 1879 to 1889 the rate of increase was 6.6 per cent. per annum. The
Government had estimated that the reduction would involve a loss to the
revenue of some 15 millions for the first year. The actual loss was
15,323,571 fr.
These figures are figures of gross revenue. The figures for net revenue are
less satisfactory, both in character and in the amounts indicated. Their
character is unsatisfactory because the expenses of the postal and telegraph
departments were not separate; and the figures for net revenue therefore
represent the net revenue on the whole service, both postal and telegraph,

and not merely for the postal traffic alone. At this time, however, the
telegraph business was small comparatively, and the figures indicate
generally the result of the reform. In 1877 the net revenue was 47,706,293
fr. In 1878 it fell to 29,343,953 fr., and in 1879 to 21,084,699 fr., from
which date there was a gradual, but steady, recovery. In 1888 it had reached
48,811,146 fr. 25, an amount higher than that of 1877, and in 1889 the net
revenue passed 53 millions, a sum never before reached in France.[208]
The rate fixed in 1878, although marking a considerable reduction of the
previous rate, was felt to be unsatisfactory. One of the principal reasons
invoked as justifying the suggestion for a further reduction of the rate, was
that the number of letters actually posted in France was much less than the
number posted in other countries. This circumstance was attributed partly to
the high initial rate, and partly to the fact that the progression of charge was
directly proportionate to the increase of weight. The initial rate was in point
of fact much higher than the corresponding rate in other countries. The
Press often called attention to the unfavourable position in France in this
respect, and developed public opinion strongly in favour of a reduction.
Representations from business houses, chambers of commerce, and conseils
généraux were constantly received by Parliament. The question was
frequently advanced in the Legislature, and numerous suggestions for
legislation were put forward by members. Thus, in 1897 M. Chassaing
proposed, among other reforms, the reduction of the letter rate to 10
centimes for each 15 grammes. Although admitting the desirability of
granting the boon, the Budget Commission were unable to recommend that
course on account of the serious effect on the net revenue which must be
anticipated.[209]
In 1900 M. Millerand, Minister for Commerce, Industry, Posts, and
Telegraphs, in a report to the President,[210] recommended a reduction of the
rate on the grounds that it would give satisfaction to the public, and, at the
same time, increase appreciably the number of letters transmitted by post.
He suggested the following scale:—

Letters not exceeding 15
10centimes
grammes
From 15 to 50 grammes 15 "

for each 50 grammes, or fraction of
Over 50 grammes 5 "
50 grammes

Such a reduction would bring the rate of letter postage down to the level of
the existing rate for postcards; and M. Millerand regarded the reduction of
the latter rate to 5 centimes as an inevitable corollary, and a reform which
might safely be made.[211] Assuming this further reduction, and applying
the proposed reduced rates to the statistics of existing traffic—ignoring both
the probable increase of traffic and the increase of expenses which would
result from the increase of traffic—it was estimated that the loss to revenue
would be—

fr.
On single letters 34,071,584
On heavy letters 4,707,836
On charged letters 404,787
On postcards 2,569,787
Total 41,753,994

The reduction of revenue would be 35.6 per cent. of the total yield.
The reform of 1878 had entailed an increase of working expenses of about
37 millions (5½ millions of capital cost, and 31½ millions of annual
expenses). The increase of traffic from the proposed reform would,
however, be 17 per cent. less than the increase after 1878 (because the
reduction was five-fifteenths of the rate instead of six-fifteenths as in 1878),
and the increase of cost would therefore be proportionately less. Calculated
on this basis, the increase was estimated at 31,037,829 fr. (4,920,000 fr.
capital expenses and 26,117,829 fr. annual).
In all, therefore, the reduction would involve a loss of revenue of
41,753,994 fr., and an increase of expense of 31,037,829 fr.—a total loss of
72,791,823 fr.[212]
In order as far as possible to replace this loss, M. Millerand proposed to
abolish the special tariff for papiers d'affaires and subject them to letter
postage, and also to increase the rates on small packets of printed matter,
other than newspapers and periodicals.[213] The deficit to be looked for in

the first year would then be 16,233,833 fr., and might be estimated to
disappear in the eighth year. The gross revenue would recover in the third
year. The Government was not, however, prepared to sacrifice the revenue,
and the proposal was deferred.
The question still continued to receive attention in the country and in
Parliament.[214] At length, in view of the persistent agitation,[215] the
Government in 1906, on the recommendation of the Budget Commission,
resolved to face the inevitable loss of revenue and make the reduction. The
result was in many ways satisfactory. The number of packets sent at the
letter rate of postage increased very considerably. A large quantity of traffic
was diverted from the cheaper open post to the letter post, in order to obtain
the advantage of secrecy, some large business houses sending at the letter
rate millions of communications which would, under the old rates, have
been sent by the open post. In 1905, before the reduction, the number of
packets passing by post was 2,371,000,000. In 1907 the number had
increased to 2,720,000,000, and in 1908 to 2,802,000,000. The loss of net
revenue was nevertheless very great. The gross revenue was diminished by
some 12 millions, and the expenses increased by 21½ millions. The net
revenue fell from 91,750,000 fr. in 1905 to 59,750,000 fr. in 1906.
The reduction of 1906 placed France in a position of equality with most
other nations as regards the initial rate for letters. Indeed, the French rate
was slightly lower than that in several other countries. Thus, the equivalent
of the German and Austrian initial rates was 12·2 centimes, of the Swedish
13·8 centimes, and of the English 10·5 centimes. But as regards the weight
allowed for the initial rate, and also as regards the rates for heavier letters,
the position was still unsatisfactory. The maximum weight allowed to pass
at the initial rate was 15 grammes, and the rate for a letter of 250 grammes
was 1 fr. 70.[216] In Germany the rate for a letter of that weight was 24·4
centimes, in England 26·2 centimes, and in Switzerland 10 centimes.
Attention was therefore now directed to a modification of the scale of rates
for the heavier letters. The Budget Commissions of 1908 recommended the
reform.[217] In their view the unfavourable comparison with other countries
in this respect could be justified neither by logic nor by regard to the
interests of the Treasury. Logically, a rate of postage ought to be

proportionate to the cost of the service performed, and this was far from
varying in accordance with the weight of postal packets.[218]
The number of heavy letters was, moreover, small proportionately, and the
effect on the Treasury of a reduction of rate for such letters would be slight.
Indeed, it was thought an increase of revenue might be anticipated, since, in
addition to the natural increase resulting from the reduction, there would, as
in 1906, be a tendency for many packets sent by the open post to be sent
under the advantage of the closed post. It was urged that the reduction
should be accompanied by certain modifications in the minor rates, which
would lead to a desirable simplification of rates: the special rate for
commercial papers should be abolished, and the general rate for postcards
should be made 5 centimes; the whole of the reforms being carried out at
the same time, in order that the increases might be seen in their proper
relation to the compensating reductions. Otherwise the public might forget
the benefits, and resent the increases. The net loss of revenue was estimated
at 4 million francs.[219]
The law of the 8th April 1910 increased the unit of weight for letters to 20
grammes. For the heavier letters the rates were: from 20 to 50 grammes, 15
centimes; from 50 to 100 grammes, 20 centimes; and so on, adding 5
centimes for each 50 grammes or fraction of 50 grammes up to the
maximum weight allowed, viz. I kilogramme. The special rate for
commercial papers over 20 grammes in weight was abolished. The
privileged rate was retained for packets weighing not more than 20
grammes, Parliament refusing to agree to its total abolition.
Note.—On the 1st January 1917, as a war measure, the general
letter rate was raised from 10 centimes to 15 centimes.

LETTER POST IN GERMANY[220]

A system of messengers (Boten-Anstalten) existed in Brandenburg as early
as the first half of the sixteenth century, and in 1604 a master of the
messengers (Botenmeister) was appointed, whose duty was to control the

sending and receiving of all despatches.[221] The incorporation of Prussia
and Cleve in the Mark of Brandenburg rendered necessary the improvement
and extension of the messenger service, and in 1614 the Elector John
Sigismund appointed twenty-four messengers, who were paid at a fixed
rate, according to the length of the route traversed. Thus, for the Strasburg,
Cologne, and Düsseldorf routes the payment was 10 thalers, and for the
Cracow, Königsberg, and Mainz routes, 8 thalers. Once a year they were
supplied with an outfit of clothing. When not travelling, they were required
to report themselves every hour to the Botenmeister, and to hold themselves
in readiness at all times to set out if necessary without delay. The journeys
were made according to set times, and the messengers, who carried both
letters and parcels, were provided with a way-bill, on which the times of
arrival at and departure from the various points were entered. The Boten-
Anstalten really comprised two kinds of undertakings—the so-called Post-
boten and the Landkutschen. The former were the ordinary messengers; the
latter a kind of stage-coach system, which carried both passengers and
merchandise.[222] The rates of charge were based on the actual length of the
journey, and also upon any accidental circumstance which might have a
relation to the question, such as high general prices.[223]
In 1634 a riding post between Cöln a. d. Spree and Crossen was established,
and shortly afterwards a similar post to Glogau, in order to provide a means
of communication between the Government and the Swedish Army. For the
same purpose in 1635 a daily messenger service (Botenpost) was
established from Tangermünde to Berlin, and in 1646 a military post
(Dragonerpost) was established between Berlin and Osnabruck, in
connection with the conference preceding the signing of the Treaty of
Westphalia.
All these services were for the conveyance of the Court and Administrative
correspondence only. The Botenmeister nevertheless frequently undertook
the conveyance of private letters, for which special charges were made, and
often the messengers themselves clandestinely carried private letters.
In 1618 the Botenmeister of Berlin established a special messenger route for
the conveyance of private letters (Ordinari-Boten-Cours) from Berlin to
Leipzig and Hamburg, and at about the same time the Botenmeister of
Königsberg established a similar route to Danzig. In other large towns

messenger services for the conveyance of ordinary letters were established
by private individuals, but these services were often inefficiently conducted.
The messengers followed no fixed route, and the services were irregular
and unsafe. They were at best only makeshifts.
As the result of a variety of circumstances, the establishment of regular
posts became a necessity in the time of the Great Elector. The extension of
the Brandenburg territory, and the political developments, rendered it
desirable to adopt all possible means for binding together the entire
territory. Regular posts would also contribute to the national welfare and
assist industry and commerce, although there was little prospect that at the
outset they would prove profitable.[224] In 1646 a riding post between
Königsberg and Danzig was established; shortly afterwards a post between
Berlin and Königsberg, and thereafter others. In 1649 the control of all the
posts was definitely assumed by the Electoral administration.[225]
In general the posts went twice weekly; stages were erected for the
exchange of horses and postilions. At first, postilions were changed every
twelve (German) miles,[226] and horses every four (German) miles. Later,
the stages for the changing of horses were reduced to three miles. The usual
speed of the posts, travelling day and night, was one mile an hour, and
punctuality was insisted on.[227] The journey from Berlin to Königsberg
occupied four days, and that from Königsberg to Cleve ten days.[228] There
was at first no delivery service, and all letters must be obtained at the post
office, where the people were consequently in the habit of congregating to
await the arrival of the post.[229] The postage was retained by the
Postmaster as the remuneration for his services. For the actual management
and conduct of the service he drew on the State funds to the extent of some
6,000 thalers annually, and all official despatches were consequently
conveyed free. This charge diminished, however, with the years, and in
course of time the service came to yield a profit to the State. In the
Postmaster's patent granted in 1661 it was provided that a portion of the
proceeds of postage should be accounted for to the State treasury.[230]
The rates of postage were at first fixed according to ancient custom, but
they were on several occasions reduced. The postage on a letter not
exceeding half an ounce in weight sent from Berlin to Wutzkow, from

Breslau to Wutzkow, or from Berlin to Frankfort, was 2 groschen, and from
Berlin to Magdeburg, 1½ groschen.[231]
With the growth of commerce and the establishment of the travelling post
and parcel post, the service became more and more successful financially.
In 1695 the expenses represented some 50 per cent. of the gross revenue.
By 1712 they had fallen to some 41 per cent. The gross revenue was at the
same time rapidly increasing. The net revenue, which was, of course,
increasing still more rapidly, was in 1695 about 62,000 thalers, and by 1712
had risen to some 137,000 thalers.
The rates of postage were modified in 1699, and again in 1712; but as the
old rates were retained as the basis of both revisions, the charges remained
for fifty years substantially unchanged. A letter from Berlin to Hamburg
now cost 2½ groschen, to Bremen 3 groschen, to Dresden 2 groschen, to
Frankfort-on-Main 3 groschen, and so on.
During the next fifty years prices were gradually, but steadily, rising in
Prussia. The Seven Years' War produced a sudden and very considerable
rise in the prices of all agricultural products. And not only did the
purchasing power of money fall owing to the scarcity and high price of
provisions, but its value also decreased through depreciation.[232] The cost
of conducting the postal service rose correspondingly, and the financial
difficulties were increased owing to the falling off of traffic consequent on
the war. At the end of 1761 the King was asked to agree to a contribution in
aid, but assistance was not forthcoming. Something had to be done; and on
the 27th January 1762, in common with the general increase of taxation, the
rates for parcels and for value letters were increased 100 per cent.; the
travelling post rates, which varied from 3 to 4 groschen per mile, were
increased by 1 groschen per mile; and the fees for guides, which were about
6 groschen per station, by about 2 groschen per station. The letter rate
remained unchanged.[233]
In the early part of 1766 a new tariff was introduced. The rates for parcels
fixed in 1762 were maintained, and new and higher rates for letters were
introduced. The increase in the general rates varied from about 15 per cent.
to about 50 per cent. The minimum, which for letters passing between many

neighbouring places had formerly been only 6 pfennigs, was increased to 1
groschen.
The raising of the rate led to a large amount of fraud, and caused much
public inconvenience. The revenue did, indeed, increase in the first year
quite appreciably; but in the second and third years, instead of the normal
yearly increase, there was a notable decrease. Complaints against the new
rates were widespread, and it was alleged that the increased charges
embarrassed commerce. In 1770 the rates for heavy letters, printed matter,
and documents were reduced again to those of 1712. The rates had
previously been based on a variety of considerations,[234] but this
miscellaneous basis was now put aside and a uniform system established,
the same letter rate being applied throughout the State.
The coinage edict of 1821, by which the thaler was divided into 30 silver
groschen instead of 24 groschen as previously, made necessary an alteration
of the postage charges, and amended rates were established on the 1st
January 1822. No account was taken of a less amount than a half-groschen,
and odd amounts were reckoned at the next half-groschen above, with the
result that in certain cases the rate became higher than formerly.
A reduction of the rates of postage was in contemplation, but while the
discussions on the proposals were in progress, the State finances became
somewhat straitened. It became necessary to look about for fresh revenue,
and a Commission appointed to consider the question recommended that
more revenue should be obtained from the Post Office. The Postmaster-
General pledged himself to bring up the surplus from 700,000 or 800,000
thalers, where it then stood, to a million, and, if possible, to 1,200,000
thalers. Accordingly, in 1824 the rates of postage were revised, and, in
general, increased. In many cases the increase was as much as 20 per cent.,
and the tariff as a whole was the highest ever fixed in Prussia. The chief
characteristics of this important change were that letter and parcel rates
were reckoned according to the direct distance (Luftlinie) between the post
offices, and not according to the distance by way of the post routes, or the
time occupied on the journey, or any of the other considerations which had
previously entered into the reckoning. All special rates for individual routes
and places were abolished.

The new rates were, for a single letter not exceeding ¾ loth (⅜ ounce) in
weight—

Up to 2miles 1 silver groschen
From 2miles to 4 miles 1½ "
" 4 " 7 " 2 "
" 7 " 10 " 2½ "
" 10 " 15 " 3 "
" 15 " 20 " 4 "
" 20 " 30 " 5 "

and for each 10 miles further, 1 silver groschen more.
A map of distances was prepared, and every post office was furnished with
a table compiled from this map, showing the distances between that office
and all other post offices in Prussia, together with the corresponding rates of
postage.[235] Formerly, direct rates of postage existed only between a
limited number of post offices, and letters for any other places were charged
an additional rate (Binnenporto) in respect of the distance not covered by
the ordinary rate. This charge was now abolished. Each post office could
calculate the rate to any other post office by means of its table of rates.
There was, however, an additional charge (Landporto) in the case of places
at which there was no post office, but which were situated on the post
routes. It was arranged that letters might be despatched to or from such
places so long as the post-messenger was not thereby delayed on his
journey, and for the forwarding of any such letters to or from the nearest
post office the lowest rate of postage was charged, reckoned as from the
nearest post office. Letters up to 1 ounce in weight were sent by riding post.
Letters exceeding 1 ounce in weight were sent by parcel post (Fahrpost),
and were charged the corresponding rate, unless the sender expressly
requested transmission by riding post.
For the longer distances the rates were higher than previously. The rate for
the greatest distance within the Prussian postal territory, which under the
old rates was 18 silver groschen for a single letter—that is, for a letter up to
⅜ ounce in weight—was now 19 silver groschen. The reduction was
greatest for letters going only short distances. The rate for the shortest

distances was reduced from 1½ silver groschen to 1 silver groschen. But the
higher rates applied to letters passing between the great centres, and these
formed the greater part of the whole number. In addition, the progression of
the scale of weights was made very rapid. From the earliest days of the Post
Office in Prussia the progression of weight had been by the half-ounce, and
this had not been changed even in 1766. The scale was now made—

From ⅜ oz. to ½oz. 1½times the rate
" ½ " ¾ " twice the rate
" ¾ " 1 " 2½times the rate
" 1 " 1¼ " 3 "
" 1¼ " 1½ " 3½ "
" 1½ " 1¾ " 4 "

and so on for each quarter-ounce a half rate more.[236]
The year 1824 was also noteworthy for the experimental establishment in
the district of the Frankfort-on-Oder post office of a rural delivery system.
This was the first step towards the general extension of the rural delivery
throughout Prussia. The experiment was successful, and the system was
extended in the following year. For delivery by the rural letter-carriers an
additional charge was made for each letter, according to the following scale:
—

For distances not exceeding 1½miles 1 silver groschen
" 2 " 2 "
" 3 " 2½ "

For the longer distances the rates of 1824 were found to be oppressive for
ordinary letters, and burdensome to commerce and literature. Financially
also the increase was not a success. For 1824, the last year of the old rates,
the surplus was 823,229 thalers, an increase of 100,325 thalers over the
surplus of 1823. The surplus for 1825, the first year of the new rates, was
1,121,616 thalers, an increase of 298,387 thalers over the surplus of 1824.
Apparently, therefore, the new rates had produced an immediate increase of
net revenue. This was, however, not the case. While the actual proceeds of
postage in 1824 were 73,152 thalers greater than in 1823, the proceeds of

postage in 1825 were only 80,890 thalers greater than in 1824.[237] The
increased yield of postage was therefore quite small. And even this small
increase disappeared in 1826. For that year the yield of postage was only
40,547 thalers greater than in 1825, and in 1827 there was an actual falling
off of 41,942 thalers. The increase of net revenue was therefore attributable
to other causes. Thus, for example, in 1825, by some means or other, a
reduction of no less than 136,160 thalers was effected in the expenses of the
service.
The rates were soon found to need amendment. Changes were made in the
subsidiary rates, the rates for commercial papers, for magazines, etc., but
the letter rate remained unchanged until 1844, when a considerable
reduction was made. The following rates for a single letter (not exceeding ⅜
ounce in weight), were established:—

silver
Not exceeding 5 miles 1
groschen
From 5 miles to 10 miles 1½ "
" 10 " 15 " 2 "
" 15 " 20 " 2½ "
" 20 " 30 " 3 "
" 30 " 50 " 4 "
" 50 " 100 " 5 "
For each further 100 miles within the Prussian
6 "
administration

These rates were applied to letters, printed matter sent under band, and
letters containing samples of merchandise. It was estimated that this change
would reduce the gross receipts from postage by 700,000 thalers, and the
net revenue for 1845 was estimated at 700,000 thalers instead of 1,400,000
thalers. The actual decrease in 1845 in the gross receipts from postage was,
however, only 302,563 thalers, and the actual falling off in net revenue only
346,208 thalers. The gross revenue soon recovered, and in 1847 exceeded
that of 1844.[238]
The Prussian administration, while not prepared to introduce complete
uniformity of rate irrespective of distance, were yet desirous of simplifying

the rates, and of removing from them any trace of the fiscal tradition, so far
as this course could be followed without involving serious sacrifice of net
revenue.[239]
In September 1848 the distinction between the letter rate and the rate for
printed matter and documents was abolished, and on the 1st October 1848
the following scale of weights for all letters, publications, etc., was
introduced, viz.:—

Not exceeding ⅜oz. 1 rate (i.e. 1 sgr.)
From ⅜ oz. to ½oz. 1½"
" ½ " ¾ " 2 rates
" ¾ " 1 " 2½"
" 1 " 4 " 3 "
" 4 " 8 " 4 "

and over 8 ounces 4 rates, until the charge was less than double
parcel rate.
The rates were still based on the old theory of distance. The Prussian
administration feared that a complete reform of the rates on the English
model would have a disastrous effect on the postal revenue, and so upset the
equilibrium of the State finance. They had, of course, the experience of
England to guide them, and they had not failed to note the large reduction
of net revenue which the adoption of the reform of 1840 had entailed. In the
following year, however, a great step was taken in the direction of the new
system. By the law of the 21st December 1849 the following simplified
rates of postage, to take effect from the 1st January 1850, were established:
—
For a single letter not exceeding ½ oz. (1 zollloth)—

Up to 10 miles 1silver groschen
10 miles to 20 miles 2 "
All other distances 3 "

For a letter weighing—

From ½ oz. to 1 oz. 2rates
" 1 " 1½ " 3 "
" 1½ " 2 " 4 "
" 2 " 4 "5 "
" 4 " 8 "6 "

and so on, until the rate became less than the parcel rate (1
zollloth = 1⅛ loth).
The reductions in Prussia were in all cases made with careful regard to the
possible financial results. The desire to remove all trace of the fiscal
tradition did not extend to a desire to relieve the Post Office of its revenue-
producing function, and the actual loss of net revenue which resulted in
Prussia from the introduction of cheap postage was much less than the loss
in England.[240] The set-back to the revenue consequent on the reduction of
1844 was recovered in 1847; the set-back consequent on the reduction of
the rates of value letters and parcels in 1848 (on the average some 66⅔ per
cent.) was recovered in 1852; and that occasioned by the reform of the 1st
January 1850 was recovered in 1853. But the reform of 1850, which
retained the three distance charges, was far from being a complete reform of
the character of that in England.
No change of importance was made in the ordinary letter rate between 1850
and 1860. In the latter year the maximum weight for packets passing by
letter post was fixed at half a pound (15 loth).[241] A further step towards
simplicity and reduction of the letter rate was taken in 1861,[242] when the
weight scale was revised and the three steps established in 1849 abolished,
two only being substituted. Letters up to half an ounce in weight were to
pass at the single rate, and letters exceeding that weight at double rate. The
three distance zones were maintained.
The special fee for delivery which was collected from the addressee by the
post office of destination was still in force. It was, of course, in effect, an
increase of the normal rate of postage, and as such it lay as a heavy burden
on the letter traffic. In the case of packets of printed matter not exceeding
half an ounce in weight it amounted to 100 per cent. on the normal rate. It
was, moreover, disproportionate to the cost of the service of delivery.[243]

Since 1850 the Prussian administration had incessantly urged the abolition
of the charge. Special charges for delivery had already been abolished in
England, in France, and in other of the larger States. The efforts of the
administration were, however, frustrated by the Minister for Finance, who
was unable, from regard to the needs of the national exchequer, to abandon
the revenue obtained from this source. These financial considerations
delayed the abolition of the charge by at least a decade.[244] The existence
of the charge was found to be especially unfortunate in regard to foreign
letters, since its collection was regarded by foreign administrations as an
addition to the ordinary postage and consequently an evasion of the terms
of agreements under which foreign rates had been fixed. The charge was
ultimately abolished in 1862.[245] In order to avoid inconvenient reduction
of revenue, it was arranged that the abolition should be effected gradually:
for certain classes of traffic as from the date of the coming into force of the
Act, for other classes as from the 1st July 1863, and for the remainder as
from the 1st July 1864.
The political events of the years 1864 and 1866 occasioned far-reaching
modifications of the postal service in Germany. After the expulsion of
Austria from the German league, Prussia took over the administration of the
postal service in the duchies of the Elbe. Prussia had also absorbed the
kingdom of Hanover. The territory of the Prussian postal administration was
thus largely extended; and in addition the Prince of Thurn and Taxis
relinquished in favour of the Crown of Prussia the control which he had
exercised over the postal service in eighteen States.[246]
The North-German Union was established in 1867, and the postal
arrangements for the whole territory of the Union were unified. Up to this
time ten independent postal administrations had existed in this territory,[247]
and the rates of these administrations differed in various particulars. The
Prussian rates were applied temporarily to all postal traffic passing between
the old and new Prussian territories, and the rates of the Union service were
applied to traffic passing between the territories forming the North-German
Union.
The continuance of these conditions was not consistent with a unified
administration of the postal affairs of the whole North-German Union, and a
reform of the rates became necessary. Germany was in 1867 almost the only

one of the great States of the world which still maintained a scale of rates of
postage for letters graduated according to distance. Prussia had already
repeatedly endeavoured to introduce the principle of uniformity of rate
irrespective of distance which had been adopted by all others, or at least to
secure further simplification; but advance in this direction had always been
hindered by financial considerations.[248] The political developments now
opened the way for a thorough reorganization of the rates, and this was
achieved by the law of the 4th November 1867. This law, which took effect
from the 1st January 1868, established uniform rates for letters, irrespective
of distance, of the following amounts—1 sgr. (= 10 pf.) for letters not
exceeding half an ounce in weight, and 2 sgr. for all letters of greater
weight.
After the refounding of the German Empire in 1870, there was fresh
legislation in regard to the Post Office.[249] Among other changes, the limit
of weight for the single letter was fixed at 15 grammes, and the limit of
maximum weight at half a pound. This law also abolished the charge for
rural delivery, a long-desired reform which had been frequently urged upon
the Reichstag. In order to assist further the interests of residents in the
country, it was arranged that on payment of a monthly fee of 5 sgr. letters
might be handed to and delivered by the post messenger, in a closed pouch,
at places on his route.
The rates established under this law have remained in operation
substantially unchanged up to the present time. The most important
modification was made in 1900, when the maximum limit of weight of the
single letter was raised from 15 to 20 grammes. Under these rates the letter
post has developed continuously. In 1872 the total number of letters passing
by post within the territory of the Imperial Post Office was 422 millions,
and in 1910 the number had increased to 2,026 millions. As in other
countries, the letter rate has proved extremely profitable. The net revenue of
the Imperial Post Office in 1872 amounted to 4·7 million Marks, and in
1910 to 88 million Marks. In Germany, however, the railways are State-
owned, and the Imperial Post Office is not required to pay to the railways a
full equivalent for the services performed. The value of the service
performed by the railways on behalf of the Post Office for which no charge
is made against the Post Office is not definitely known.[250] The newspaper

traffic, the parcel post, and the Imperial Telegraph Service are carried on at
heavy loss. The Post Office also performs numerous services, such as those
in connection with the National Insurance schemes, for which it receives no
monetary credit; and there is no doubt that taken by itself the letter traffic is
largely profitable at the existing rates, even when full allowance has been
made for all legitimate charges against the service.

Note on Rural Delivery

Until the eighteen-thirties there was no State provision for the letter traffic
in country districts. Residents in the country must deliver all their letters at,
or fetch them from, the nearest post office, which was done on market-day
or by messengers. In 1824 a beginning was made in Prussia by the
introduction experimentally of a delivery service at certain post offices. In
the following years the number of rural deliverers and the number of
posting-boxes in the villages were increased, and a uniform delivery fee
(Landbestellgeld) of 1 silver groschen instituted. The delivery fee was
abolished on the 1st January 1872 (law of 28th October, 1871). This meant
the abandonment of a yearly revenue of 1½ million Marks.
In spite of the increase in the number of post offices there were still in 1880
as many as 19 million people, the greater half of the whole nation, and
17,000 localities, outside the limits of the postal service.[251]
In 1880 a great step forward was taken. The number of rural deliverers was
largely increased, and also the number of postal stations in the country
(Posthülfstellen).[252] A daily delivery was extended to the greater number
of places, the rural routes in most cases being so arranged that the deliverer
returned by the same route, thereby enabling an answer to be sent the same
day to letters received on the outward journey.[253]

II

THE RATE FOR NEWSPAPERS
NEWSPAPER POST IN ENGLAND

In England newspapers have enjoyed special privileges in regard to
transmission by post since about the middle of the seventeenth century. The
origin of the privilege is to be looked for in the special circumstances under
which the early newspapers, and the newsletters and newsbooks from which
they were derived, were issued, and the means by which the news included
in them was obtained.
At that period the post was the chief means by which news could be
collected or distributed. The newsletters were distributed by post,[254] and
the news which they contained was for the most part obtained through the
agency of the Post Office from correspondents in various parts of the
country. It was, indeed, an important part of the function of the Post Office
to furnish news to the Court, and to the other departments of State, as well
as to the general public.[255]
In 1659 General Monck appointed Henry Muddiman, a journalist who had
already issued the Parliamentary Intelligencer and the Mercurius Publicus,
to write on behalf of the Royalist cause. In consideration of his services he
was, after the Restoration, given the privilege of free transmission for his
letters.[256] This gave him an advantage over other journalists, and his
newsletters and newsbooks became extremely popular. In 1663, however,
he was supplanted by Roger L'Estrange, a Royalist who had not to that time
been properly recompensed for his faithfulness. L'Estrange was an able
writer, who after the passing of the Licensing Act of 1662 had been
requested to draw up proposals for the regulation of the Press. As a reward
for his services in that connection he was given the office of Surveyor of the

Press, his remuneration being the sole privilege of writing and publishing
newsbooks and advertisement. L'Estrange also secured the privilege of free
postage from Lady Chesterfield, one of the farmers of the Post Office.[257]
L'Estrange's privilege put an end to Muddiman's newsbooks, but in no way
interfered with his newsletters and his right to free postage. He was able,
therefore, to continue his newsletters, and did so with great success. After
the Restoration Muddiman had attached himself to Sir Edward Nicholas,
one of the principal Secretaries of State, and his Under-Secretary, Joseph
Williamson, from whom he had been in the habit of obtaining part of his
news. Williamson was a grasping man, who became jealous of the success
of the newswriters, and finding that L'Estrange was unpopular, conceived
the idea of getting the control of the whole business into his own hands. He
therefore suggested that Muddiman should go to Oxford, where the Court
had removed owing to the plague, and publish a new journal in opposition
to L'Estrange. While Muddiman was at Oxford, Williamson would obtain
by an agent in the Post Office, James Hickes, the names of all his
correspondents.[258] The plan was eminently successful, and on the 16th
November 1665 the Oxford Gazette appeared, to be transformed a few
months later, with its twenty-fourth issue (5th February 1665-6), into the
London Gazette. Muddiman, however, gained knowledge of Williamson's
designs regarding his correspondents, and on the 8th February 1666 left the
Gazette. Williamson thereupon took control of its publication, and, with the
assistance of Hickes, continued its issue. He appointed correspondents in all
the leading seaports, and in a few other English towns, and also in
continental cities, who were required to furnish accounts of passing events.
In return for their services the correspondents received regularly copies of
the Gazette. Both the letters from correspondents and the Gazettes which
were their reward passed free of postage.[259] The regular supply of a copy
of the Gazette was so great a privilege that it was often regarded as
sufficient wages for a post-messenger or even a deputy-postmaster.[260]
This became a recognized practice before the end of the seventeenth
century, and the privilege was regarded as forming part of the ordinary
emoluments of the deputy-postmasters.[261] The Gazettes were sent out
from London by officers known as Clerks of the Road, under the frank of
these officers; and the privilege of franking these Gazettes became extended

so that the Clerks of the Road ultimately became entitled to frank any
newspaper to whomsoever addressed.[262] In the eighteenth century the
Clerks of the Road developed the exercise of their privilege. They accepted
subscriptions and undertook the supply of newspapers generally throughout
the country. They became, in fact, newsagents. Their newspaper business
was something quite apart from their duties as officers of the Post Office. It
was conducted in a separate building, by a separate staff, and they found it
very lucrative.[263] The postage on newspapers at the letter rate would have
been prohibitive. Hence newspapers either went under frank or did not go
by post at all, and the whole business of distribution through the post fell
into the hands of the Clerks of the Road. Their profits were in part applied
to the discharge of certain payments—the salaries of some of the inferior
clerks and some charitable payments—in connection with the Post Office.
[264]

In 1764 the privilege was explicitly recognized by statute,[265] but the same
Act gave a severe blow to the whole system by authorizing members of
Parliament to send newspapers free of postage. The members did not
confine the exercise of the privilege to newspapers sent by or to them for
their own use, but granted orders for free postage to booksellers and
newsagents on a liberal scale.[266] The booksellers naturally cut the prices
charged by the Clerks of the Road. The charge of the latter had been £5 a
year for a daily paper, and £2 10s. a year for an evening paper. The
booksellers in 1770 advertised a charge of £4 a year for a daily paper, and
£2 a year for an evening paper.[267] As a result a large part of the traffic
went to the booksellers, and the profits of the Clerks of the Road fell so
rapidly that it was soon found necessary to relieve them of the charges on
their profits.[268]
Efforts were made to check the abuse of the privilege of franking of
newspapers held by members of Parliament under the Act of 1764. An Act
of 1802 (42 Geo. III, cap. 63) required not only that the member should sign
the newspaper packets, but that the whole superscription, together with the
date of posting and the name of the post-town in which the paper was
intended to be posted, should be in his handwriting. The member must,
moreover, himself be in the post-town where the paper was posted on the
date shown on the paper. These regulations were not long maintained. They

were probably too stringent to be enforced, and in the course of a few years
the appearance on the newspaper or wrapper of any member's name,
whether written by himself or by any other person, or even printed, was
sufficient to secure free transmission through the post. In 1825 the
conditions were definitely repealed, and newspapers became legally entitled
to free transmission by post.[269]
There were reasons why the Government and the Post Office did not
suppress the extension of the privilege accorded to newspapers. At this time
heavy general taxes were imposed on newspapers—the paper duty, the
advertisement duty, and the stamp duty.
These charges had been first imposed in the early years of the eighteenth
century, when newspapers were changing character, and they were in the
nature of restrictions on the liberty of the Press, a continuation of the
restrictions which had previously been maintained by means of Licensing
Acts.[270] Newspapers were at that time ceasing to be mere chronicles of
events, and were beginning to publish comments and to criticize persons
and parties. A Bill to impose a tax of 1d. a copy on all periodical
publications was brought into Parliament in 1701, but was abandoned
owing to the opposition of the newspaper proprietors, who represented that
they were in the habit of selling their papers at a ½d. a copy.[271] In 1712 a
message from the Crown, adverting to the undesirable character of the new
development of newspaper enterprise, recommended that a remedy be
found without delay. The result was the imposition of a stamp duty of ½d.
the sheet on all newspapers of a sheet and a half.[272] The privileges with
regard to their transmission by post were, however, in no way interfered
with.
In 1776 the tax was raised to 1½d. a copy, in 1789 to 2d., in 1794 to 2½d.,
and in 1815 to 4d., at which amount it stood until 1836. In 1819 onerous
restrictions with regard to registration, bonds, and sureties were imposed,
mainly with the view of preventing the issue of publications of undesirable
character.[273]
In consideration of these charges the Government were prepared to allow
free transmission by post. Moreover, the franking privilege of the Clerks of
the Road was favoured as an economy. They argued that as these officers

received considerable sums from their newspaper business their salaries
from the Post Office were correspondingly low, and if the newspaper
business were taken from them it would be necessary for the Post Office to
make good the loss in income which they would suffer.[274] It would seem
that there was at this time no conception of charging a rate of postage on
newspapers; and so far the authorities were right in thinking the abolition of
the privilege would cause an addition to the expenses of the Post Office, in
compensation for which there would be no increase in revenue. Whatever
were the taxes paid to other departments, it was clearly in the financial
interest of the Post Office, so long as newspapers passed free by post, to
retain a system which enabled certain of its officers to obtain part of their
income from special arrangements for the distribution of the newspapers,
instead of from Post Office funds.
The Clerks of the Road still held an advantage over the ordinary
newsagents. The local postmasters acted as their agents, and they had,
moreover, the important privilege of posting their papers later. Newsagents
were not permitted to post after seven o'clock, but the Clerks of the Road
could post as late as eight o'clock. They were able, therefore, to retain a
considerable business. In 1829 it was estimated that as many as one-eighth
of all the newspapers sent out from London were sent by the Clerks of the
Road.[275] The privilege of late posting was withdrawn in 1834, and their
business then ceased.[276]
It seems anomalous that at the same time that the Government, with the
object of restricting the publication and distribution of newspapers, imposed
a heavy stamp duty and a duty on advertisements, they should have
assisted, by allowing free transmission by post, the distribution of such
newspapers as were able to survive the impositions; but the heavy taxes
were intended to prevent the issue of cheap newspapers, and expensive
papers could only find sale among those who were not attracted by
dangerous doctrines, political or otherwise.[277] In the view of the
Government this aristocratic character ensured, moreover, a high moral tone
in the Press. Without such taxes the English Press might become a moral
danger and might conceivably sink to the level of the American Press of the
day, which, according to some eminent persons, was very low indeed.[278]
The question of free transmission by post received little attention. Chief

interest was centred on the allegation that the stamp duty so raised the price
of legitimate newspapers as to place them beyond the reach of any but the
well-to-do.
The question of allowing the free publication of newspapers, or of, at least,
reducing the heavy burdens under which they lay, became urgent after the
passing of the Reform Act of 1832.[279] The increase in the number of
people directly interested in political affairs through the extension of the
franchise, and the awakened general interest in social and economic
problems, not only produced a great demand for newspapers, but made
necessary provision for the dissemination of accurate political intelligence.
[280]
Numerous unstamped papers, which found a ready sale, were issued in
various parts of the country, in defiance of the law. Thus, in London, one of
these papers, The Poor Man's Guardian, an able and "Socialistic" paper,
bore on its title-page a notification that it was deliberately published
contrary to law, in order to test "the power of right against might."[281]
The Government took strong action against such publications. Numerous
prosecutions were undertaken, and a large number of persons in various
parts of the country were imprisoned; but the circulation of the papers could
not be checked. Popular sentiment was largely on the side of the publishers
and sellers of unstamped papers, sympathy being so strong that frequently
subscriptions for their benefit were raised.[282]
It became apparent very soon after the passing of the Reform Act that the
heavy duty could not be maintained. It was indeed so high, and the sale of
the unstamped publications was so great, that in the years after 1831 there
was an actual diminution in the yield of the stamp duty. In 1836 the
Government were constrained to deal with the question. They introduced a
Bill providing for the reduction of the duty from 4d. a sheet to 1d. a sheet.
The Chancellor of the Exchequer said that the reduction was simply a
concession to public necessity and expediency. If the duty were maintained
at its then existing level, public feeling against it would increase, and might
lead to a general disposition to encourage illegal publications. The
reduction would, moreover, assist the moral improvement of the people.
The reduction of the duty was not carried without opposition. The Times,
which had attained its position under the old duties, and the other great

newspapers then successfully conducted, were opposed to the reduction,
foreseeing the possibility of the rivalry of new and cheap competitors.[283]
An attempt was made to argue that the benefit would not accrue to the
public, since the public did not in general buy newspapers but went to the
public-house to hear them read. Such persons would still go to the public-
house, and would therefore derive no benefit from the reduced price: the
advantage would be with the publican. On the other hand, it was anticipated
that the reduction of the duty would so cheapen the newspapers that they
would be brought within reach of all. Mr. Spring Rice said he knew that
"the newspaper was one of the great attractions to take the poor man from
home to visit the public-house; if, therefore, the adoption of this proposition
tended to keep the poor man at home, it would afford a great moral aid to
the improvement of the people."[284] The moral uplifting of the poor man
was a mighty shibboleth in those days, and one which gave a power to these
arguments.
The rates fixed by the Act of 1836 were 1d. for the first sheet, not exceeding
2,295 superficial square inches, and a halfpenny for a second sheet not
exceeding 1,148 square inches. The existing provisions with regard to
registration and sureties were continued. They were considered of
importance, in view of the likelihood of the establishment of cheap
irresponsible papers which might be found publishing slanderous and
scurrilous, if not blasphemous, statements.
There is little doubt that the Government had in mind a wish still to keep
some restriction on the Press, and the Radicals always took that view. The
penny duty undoubtedly had the effect of preventing the issue of really
cheap newspapers.[285] Although in Parliament the Government argued that
they were entitled to the penny as a postage charge,[286] it is unlikely that
they did not realize how illogical it would be to charge a penny stamp duty
on every copy of a newspaper that was printed, in order to secure the free
transmission by post of such copies as the publisher might wish to distribute
by that means.[287] The proportionate numbers of newspapers sent or not
sent by post would not be the same for all publications. Such a provision
was therefore bound to work unequally. Moreover, the new duty meant that
it would still be impossible to issue a newspaper at the price of one penny,
and the cheap newspaper was still barred. The duty was in fact still a

restrictive tax; and by those who were opposed to all "taxes on knowledge,"
of which the newspaper duty had been considered one, the question was
never regarded as settled by this reduction.[288]
The official Whigs did not say much on the question of the restrictive
character of the duty. The Radicals were not so careful to hide the
repressive side. While not suggesting that the Government (with whom they
voted) desired the continuance of a restrictive duty, they roundly accused
the Opposition of desiring to restrain the dissemination of intelligence, "in
order to keep up their influence over a certain class of people, and at the
same time to perpetuate the ignorance which had hitherto hung about
them."[289]
After the passing of the Act with its definite postal privilege for newspapers
coming within its provisions, questions arose as to the status with regard to
transmission by post of certain publications which were not newspapers of
the ordinary type, but rather of the nature of critical or literary reviews. The
proprietors of these publications desired to transmit by post a part of their
issues. They were not, however, prepared to pay at the letter rate by the
ounce, but wished to bring under the Stamp Act that portion of their
impression which would pass by post, and pay duty accordingly on those
copies only. This course was agreed to by the Government in 1838,[290]
subject to a maximum limit of weight per copy of 2 ounces. The privilege
was at first conceded only to periodicals, termed "class" newspapers,
dealing with a particular subject and addressed to a certain class of the
community, such as, for instance, papers relating to law, medicine, or
architecture. It was restricted to papers dealing with what might be termed
the higher intellectual subjects. These were held to form fair ground of
exemption; but other specialist papers relating to subjects less intellectual
then appeared; such as papers relating to turf news, or reporting cases
before the police courts. These papers being entirely devoted to one subject,
it became a question whether the privilege of stamping only a part of their
impression could be given them. Instead of attempting any sort of
discrimination in such cases, the Government made one general rule that all
papers devoted to the discussion of one subject should be accorded the
privilege. Thereupon a great variety of such papers came into existence, and
very soon some of them began to include in their issues matter which could

only be regarded as news of a general character. This raised a further
question: how much such general news should be regarded as destroying
the "class" character of the publication. The Government found themselves
in a difficulty. If the law was not rigorously enforced, the papers paying the
tax raised a great outcry against the injustice to themselves; and if the law
was enforced in respect of those "class" publications which published
general news, there was a great outcry against the discrimination between
the "class" papers.[291]
The whole position in regard to these papers became unsatisfactory and
anomalous.[292] It was, in point of fact, found impossible to enforce the law.
The outbreak of the Crimean War led to a development which reduced the
whole position to absurdity. Publications were issued giving the latest and
fullest available intelligence from the seat of war. These publications
confined themselves strictly to the subject of the war. They published
nothing on any other topic; and on that ground, although devoted entirely to
the publication of news of burning interest, they claimed to be exempt from
the newspaper duty in common with all other "class" newspapers.[293]
In the Session of 1854 the House of Commons passed a Resolution,
although it was opposed by the Government, affirming that the laws in
reference to the periodical press and newspaper stamp were "ill-defined and
unequally enforced," and that the subject demanded the early consideration
of Parliament. The Government gave the matter their attention. Mr.
Gladstone, then Chancellor of the Exchequer, prepared a plan which was
embodied, with modifications, in a Bill introduced in the following Session
by his successor. This Bill provided for the abolition of the duty except on
such copies as it might be desired to send by post. The proposal was
welcomed as the abolition of the last of the taxes on knowledge, and a
liberation of the Press.[294] The only serious opposition to the Bill was made
on the ground that in the exceptional circumstances of the time—the nation
being engaged in a war—the loss of revenue could be ill-afforded; and that
the withdrawal of the duty would lower the moral character of the Press,
and open the way for seditious and blasphemous publications and for
unrestrained libellous attacks on the Government, on public authorities, and
private individuals.[295] The Government justified their proposals on the
ground that the administration of the existing law had become exceedingly

difficult, and that the resolution of the previous session condemning the
ambiguity of the existing law and the unsatisfactory character of its
administration left them little choice in the matter.[296]
An amendment to the Bill of 1855, proposing the reduction of the stamp
duty to ½d., which was in effect providing for the transmission of
newspapers by post at the uniform rate of ½d., was opposed by the
Government. There was no desire to make the postage of newspapers a
source of revenue. On this point there was general agreement. At the same
time there was no disposition to carry newspapers at less than cost. Sir
Rowland Hill, in the course of his evidence before the Committee of 1851,
had said that the Post Office could profitably carry newspapers at a penny,
[297]
and that it was unlikely that they could be carried profitably for a
halfpenny. Members of the Government and other members of the House
were convinced that a halfpenny rate would involve a loss, and they
opposed the amendment on that ground.[298]
The Act 16 & 17 Vict. cap. 63 (1853) had reduced the stamp duties on
newspapers,[299] and repealed the duties on advertisements. A further Act
(the Newspaper Stamp Duties Act of 1855, 18 & 19 Vict. cap. 27), repealed
the stamp duty, as such, in respect of newspapers, and provided that
periodical publications conforming to certain conditions should be entitled
to free transmission by post, if "printed within the United Kingdom on
paper stamped for denoting the rate of duty now imposed by law on
newspapers." The chief conditions were that the publication should be
issued at intervals not exceeding thirty-one days, should bear the title and
date of publication at the top of every page, and should not be printed on or
bound in pasteboard or cardboard. The maximum limit of weight for
publications not strictly newspapers, which in 1854 had been raised to 3
ounces, was now abolished, and newspapers and all other stamped
periodical publications were made subject to the same restrictions as to
number of sheets and extent of letterpress, etc. Concurrently with the
passing of this Act, the book post rates were reduced with the view of
permitting the transmission of unstamped newspapers at low rates of
postage.[300]
Under the Act of 1855, stamp duty at the rate payable at that time under the
existing law must be paid in order to secure the privilege of free

transmission of newspapers by post. The duty was chargeable according to
the number of sheets; and in the case of some leading newspapers, such as
The Times and the Illustrated London News, amounted to 1½d. per copy for
each issue. The proprietors of these publications in 1858 approached the
Post Office with the view of obtaining a reduction of the charge for the
transmission of their papers by post. This request was submitted by the Post
Office, and was met by the Government in a liberal spirit. In view of the
importance now attached by Parliament to the free circulation of
newspapers, as shown by the removal of taxation from them, an object of
scarcely inferior importance to the circulation of letters, it was now decided
that since the whole of the existing system rested on the assumption that the
free circulation of newspapers in general was an object of importance, and
one to be attained even at a disproportionate cost to the Post Office, a line
should not be drawn so as to exclude from the lowest rate one paper, and
that paper the one with the largest circulation. Such was the result of the
existing limitation to 4 ounces of the weight of newspapers which might be
carried by the post for 1d., and the limit was therefore raised from 4 ounces
to 6 ounces.
In 1866 the question was raised in the House of Commons whether the Post
Office charge could be reduced, especially in view of the fact that railway
companies were distributing newspapers at a uniform rate of ½d. a copy. In
1869 the question was again raised in Parliament. A resolution was moved
in favour of an inland rate of ½d. for 2 ounces on printed matter, and a
postage of ½d. on newspapers. It was urged that the concession would be of
special value in rural districts: it would indeed "be hard to say what the
effect might be in time on the social condition of the people." In several
continental countries newspapers were already transmissible by post at very
low rates. Against the possible objection that by introducing a rate lower
than the 1d. rate they were jeopardizing its maintenance for letters, and that
the proposal might therefore lead to a general ½d. rate, it was argued that so
far from that being the case, the best way of ensuring the permanence of the
1d. rate was to grant the concession asked.[301]
The Marquess of Hartington, the Postmaster-General, was unable to accept
the motion because he thought such proposals, before being assented to by
the House, should be thoroughly looked into to discover whether there was
a reasonable probability that the loss of revenue would or would not be a

permanent loss, and the Post Office should be given ample time to consider
whether the additional duties which would be thrown upon it could be
undertaken with due regard to other services, which were of greater
importance than the transmission of circulars or newspapers. The influx of a
largely increased number of circulars and newspapers would cause serious
embarrassment in the practical working of the Post Office, and might impair
the efficiency of the service in respect of letters. The primary business of
the Post Office being the "rapid and punctual transmission of letters," such
a result would give just cause for dissatisfaction.
The Marquess of Hartington asked that the motion should not be pressed.
The Chancellor of the Exchequer told the House that he had not got
£300,000 to give away. Mr. Gladstone also emphasized the seriousness of
the financial aspect of the proposals, and assured the House that the
Government honestly intended to investigate the question, however much
their suggestion for deferring a vote upon it might look like a pretext for
evading it altogether. But when the Chancellor of the Exchequer moved the
previous question, the motion was lost by a large majority. A main
contention of the advocates of the reduction of rate was that in many
foreign countries—in France, in Belgium, in Switzerland, in the United
States—extremely low rates of postage for newspapers were in operation,
and what was possible in those countries ought to be possible in England.
Following this vote in the House of Commons the matter was further
considered at the Post Office, and in the next session an Act was passed
providing that any newspaper conforming to certain conditions, the chief of
which were that it should be issued at intervals of not more than seven days
and should consist wholly or in great part of political or other news or of
articles relating thereto or to other current topics, should be entitled to
transmission by post at the rate of ½d. per copy irrespective of weight. The
privilege of retransmission was withdrawn.[302]
The statutory basis of the newspaper post has remained unchanged since
1870, and the provisions of the Act of 1870 were included in the Post Office
Act of 1908, which contains the present authority for the privilege. There
has been some necessary interpretation by the Post Office of the definition
of a newspaper as given in the Act. The chief points on which difficulty has
arisen are (1) as to the amount of news-matter required in a publication, and

(2) as to the character of the matter which can be accepted as news-matter.
The Act provides that the publication should consist "wholly or in great part
of political or other news or of articles relating thereto, or to other current
topics." This requirement is considered to be satisfied if as much as one-
third of the publication consists of matter accepted as news. The proportion,
when fixed, was based on an examination of the proportion of news-matter
contained in the average newspaper, and represents the actual proportion
then generally met with. There is no provision regarding the proportion to
be maintained between the size of a newspaper within the meaning of the
Act and its supplement, but, under the accepted interpretation of the statute,
a newspaper may contain a supplement of equal size, and that supplement
may consist wholly of advertisements. The result of this is that publications
containing a proportion of only one-sixth of news-matter may pass at the
newspaper rate of postage. As to the second requirement, a strict
interpretation of the regulation is not insisted on, and, in general, articles,
pictures, or drawings relating to any matters of current or topical interest are
accepted.
This lack of precision in the provisions of the Act, and the consequent
difficulty of framing or enforcing regulations restricting the privilege within
even reasonable limits, have been largely taken advantage of, especially in
recent years, by the publishers of trade and fashion papers, with the result
that publications weighing in some cases as much as 3 pounds are sent
through the post at the usual newspaper rate of a halfpenny. Nor are the
enormous weight of these papers, and the large proportion of advertisement
matter, the only objections. The news-matter on which they rely as entitling
them to the newspaper privilege is often of the most doubtful character,
consisting largely of accounts of shop sales or of commercial exhibitions,
with lengthy descriptions of the articles displayed.
This abuse of the privilege is, however, confined to a comparatively small
proportion of the newspapers entitled to transmission at the newspaper rate.
With the fall in the price of paper, and the improvements in printing
methods and machinery, all newspapers have tended to increase in size. But
in general the increase has been small. In 1855 the average weight of
newspapers passing by post was 3·1 ounces,[303] and in 1913 it had
increased to 4·1 ounces. The number of papers entitled to the privilege
which could be regarded as excessively heavy is not more than about 50

(out of a total of some 2,200),[304] and although practically all these papers
are published in London, and are largely distributed through the post, they
do not form more than a small proportion of the total number of packets
passing by newspaper post. But such of these publications of vast bulk and
weight as are sent at the newspaper rate derive a great advantage—an
advantage measured by the heavy loss incurred by the Post Office in respect
of each such publication.[305]
Many of the moderately heavy papers, such as the ordinary sixpenny
London newspapers, are for the most part in compliance both with the letter
and the spirit of the regulations, and their transmission at the ½d. rate is not,
perhaps, open to serious objection. But there can be little doubt that if the
possibility of developments in the publication of trade journals such as have
occurred, had been foreseen, some provision would have been made for the
prevention of the transmission at heavy loss to the Post Office of large
numbers of publications which are, in effect, trade catalogues. While the
newspaper post involves a very considerable loss, it affords the public a
useful facility, and one which is largely availed of for the purpose the Act of
1870 was intended to assist, viz. the dissemination of intelligence.[306]
The rate has proved too high to secure a large postal traffic in newspapers.
The total number passing by post within the United Kingdom in 1913 was
some 200 millions, which, in days when individual daily newspapers
publish as many as a million copies of every issue, is only an insignificant
portion of the newspaper traffic of the country. It is also only a small
portion of the total postal traffic, which in the same year amounted to some
6,000 millions. In this respect there has been a great transformation. Under
the old conditions newspapers were distributed almost exclusively by post,
and formed a large proportion of the total number of postal packets and by
far the greater bulk of all the mails,[307] while now they form only an
inconsiderable proportion both in bulk and number. The Post Office has no
monopoly of the distribution of newspapers, and for the most part
newspaper publishers themselves provide for the distribution of by far the
larger part of their issues. In all the large towns this is the case.[308] Private
enterprise can of course compete wherever the traffic would be profitable,
and private agencies provide satisfactorily for the distribution of the vast
proportion of newspapers, it being found practicable throughout a large part

of the country to place newspapers on sale at the published price; and in all
such cases payment of postage, which in the days of the halfpenny
newspaper represents an additional charge of 100 per cent. on the published
price, is out of the question. Only those for the more remote towns and
country districts are left to the Post Office; but the newspaper traffic by
post, although conducted at a loss, comprises so small a part of the whole
postal traffic, that the result on the finances of the Post Office is not serious.
If, however, such an unremunerative rate were applied to a class of traffic
likely to assume large proportions the result would be financially disastrous,
and this is the answer to such suggestions as those of Mr. Wells to extend
the newspaper rate to other classes of printed matter.[309]
In 1913 the privilege of transmission at the ½d. rate was extended to
colonial newspapers, registered for the purpose in this country.
Note.—On the 1st November 1915, as part of the war increases of postage,
the rate on newspapers was altered to ½d. for every 6 ounces or part of 6
ounces.

NEWSPAPER POST IN CANADA

No special provision for the transmission of newspapers had been made in
the Act of 1765 which first prescribed rates of postage for the Canadian
territories. Consequently, if sent in the mails, they were, in strictness, liable
to postage at the ordinary rates for letters and packets. Those rates would
generally have amounted to at least a shilling a copy, and would therefore
have prevented altogether the distribution of newspapers by post. Postage
was in practice waived, newspapers being allowed to pass by post on
payment of a small charge quarterly to the Deputy Postmaster-General, who
retained the proceeds as a perquisite of his office. The amount was at first a
mere trifle; but in later days it formed the greater part of his emoluments.
The precise date at which this arrangement was established is uncertain. It
certainly existed in Nova Scotia in 1770, and probably commenced on the
first publication of a newspaper in Canada.[310] The rates charged were low,
and were varied from time to time at the will of the Deputy Postmaster-

General. The following, which were charged in Canada in 1840, may,
however, be regarded as typical:—

For a weekly paper 1s. 0d. currency a quarter
" bi-weekly " 1s. 3d. " "
" tri-weekly " 1s. 6d. " "
" daily " 2s. 3d. " "

In the Maritime Provinces the rates were somewhat lower, the charge for a
weekly paper being only 2s. 6d. a year.
These amounts were payable by the proprietor of the paper, and were
accepted only in respect of papers sent regularly. Papers mailed casually by
persons other than publishers, and denominated "transients," were charged
1d. currency each. The publishers thought even these moderate charges
objectionable, and the feeling against them was increased when it became
known that they rested on no legal authority, but solely on the custom of the
office and the sanction of Sir Francis Freeling; and that the proceeds,
instead of being accounted for as part of the general Post Office revenue,
were appropriated by the Deputy Postmaster-General. They were also
objected to as arbitrary and inequitable, since papers were charged the same
rate whether they were conveyed 20 miles or 200 miles. As letters were at
that time charged on a scale of rates graduated according to distance, the
application of the principle of uniformity to the newspapers was naturally
not appreciated; and in view of the heavy charges incurred for
transportation it could not have been justified on economic grounds.
The resentment against the charge first took definite form in the Lower
Provinces. In 1830 a Mr. Ward, a publisher, petitioned the Nova Scotian
House of Assembly to be relieved from the charges on his newspapers. A
Committee of the House, which considered the matter, found that under the
Imperial Acts it was no part of the duty of the Deputy Postmaster-General
to receive or transmit newspapers, other than those received from Great
Britain, and that the Deputy was therefore justified in making the charge
complained of. They found also that sixty years earlier the Deputy made a
yearly charge of 2s. 6d. on each newspaper sent by post, and that at that
time all editors acquiesced in the charge. At the same time the Committee
regarded the charge as so undesirable that they recommended the House
should grant a sum to remunerate the Deputy for his services in transmitting
newspapers, in order that the charges might be abolished.

The Deputy Postmaster-General in the Lower Provinces was himself a
publisher, and it was alleged that he was interested directly or indirectly in
every newspaper published in Nova Scotia, with the exception of two, with
the result that, while all the newspapers in which he was interested passed
free of postage, the two outsiders were made to pay. The Deputy
Postmaster-General himself seemed to think the arrangement was best kept
in the background. When questioned by the House of Assembly, he adopted
a reticent attitude and made equivocating statements. He gave particulars
purporting to show the amounts paid as postage in respect of certain
newspapers controlled by him, and on further interrogation by the House of
Assembly admitted that the journals paid no postage.
Meanwhile, publishers in both Lower and Upper Canada also were working
for the abolition of the Deputy Postmaster-General's privilege. In December
1830 a publisher of Montreal, Mr. R. Armour, approached Sir Francis
Freeling, declaring that the subject might eventually involve a question of
high constitutional importance, viz. "to what extent the Post Office of Great
Britain is authorized by law to regulate the internal Post Office
establishments of the Colony, and to draw a Revenue therefrom." He
received no satisfaction from Sir Francis Freeling, who replied that the
charges were "the long established and authorized perquisite of the Officer
in question (the Deputy Postmaster-General) and that all Newspapers
circulated by post in British North America otherwise than under his
privilege are liable by Law to the charge of the full rates of Postage."
Mr. Armour then petitioned the local Legislature, and towards the end of the
year a Committee of the House of Assembly was appointed to consider the
whole question of the management of the Post Office in the province of
Lower Canada. The Committee found it impossible to obtain any useful
information concerning the finances of the service from the Deputy
Postmaster-General, Mr. T. A. Stayner, whose attitude was a source of much
irritation, resulting in great intensity of feeling both against the privilege of
the Deputy and the administration of the service from London.
In 1832 the publishers in Upper Canada, who were working in concert with
the publishers of Lower Canada, also succeeded in obtaining the
appointment of a Committee of the House of Assembly. This Committee, in

its Report, challenged the legality of any postage charge whatever raised in
the province under authority of the British Postmaster-General.
In 1833 the publishers in Nova Scotia submitted a petition to the King, but
obtained no satisfaction.[311]
In the Lower Provinces there was a sentiment in favour of the free
transmission of newspapers, which had been encouraged, if not originally
induced, by the circumstance that for a considerable period the holder of the
office of Deputy Postmaster-General for those provinces, Mr. Howe, took
little trouble to enforce the payment of that postage which, when paid, was
his perquisite, preferring to forgo the proceeds rather than incur the risk of
odium which might attach to any attempt to enforce his privilege.[312]
In 1842 Mr. Edmund Ward, the publisher of the Federation Sentinel,
petitioned the Lieutenant-Governor and House of Assembly in New
Brunswick for the abolition of the postage rate on newspapers, on the
grounds that it was illegal, a tax on knowledge, and of no benefit to the
public revenue, since the proceeds were retained by an official already
adequately remunerated for his services. The petition was submitted to the
Home authorities; and the Solicitor to the Post Office advised that, since the
Act of 1837 repealed the Act of the 4th of George III, cap. 34, the charge on
newspapers made by the Deputy Postmaster-General in North America
rested on no legal basis, and long established usage and custom was the
only justification for allowing newspapers to pass by post at less than the
legal rate. The House of Assembly in New Brunswick also took up the
question on their own account. Like the Nova Scotians, they were anxious
to facilitate the distribution of newspapers. They regarded the charge for
postage as an odious tax on knowledge, and in 1844, in a joint Address to
his Majesty, recommended its abolition.
In 1842 the House of Assembly of Nova Scotia also petitioned for the
abolition of postage on newspapers and pamphlets, contending that the
proceeds of the postage rate, which was collected from the country districts,
on which it lay as a heavy burden, did not benefit the general revenue, since
they were appropriated by the Deputy Postmaster-General, and that the
newspapers were well-nigh the only vehicle of information in the province.
In reply, the British authorities pointed out that since pamphlets were

charged as letters in England, the Treasury could not sanction free
transmission in the colonies; moreover, even with the existing rate, the
number of newspapers sent by post was increasing so rapidly that it was
becoming a matter of some difficulty, on account of the bad condition of the
roads in the province, to provide for their transmission from place to place.
Free transmission was therefore not conceded; but in July 1844 certain
changes were made in the general system of rates, and the Deputy
Postmaster-General's newspaper privilege was withdrawn, a uniform rate of
½d. per sheet for transmission to any point in Nova Scotia, New Brunswick,
Canada, and Prince Edward Island being established.
When the Post Office service throughout British North America was unified
and transferred to provincial control, the then existing rates of postage on
newspapers and pamphlets were continued, but power was reserved to each
Legislature to authorize transmission within its respective province free of
postage. By virtue of this power Nova Scotia in 1852 abolished altogether
the rate of postage on newspapers, taking pride in the fact that they were the
first authority in British North America to grant the boon. New Brunswick
soon followed suit. But the result of this, coupled with the reduction in
letter postage at the unification, was adverse to the finances of the service in
these provinces. For several years the accounts showed a deficit, which was
met by the provinces cheerfully as a contribution of no less value than
contributions made for roads, bridges, and schools.[313]
In connection with the changes introduced at the time of the Confederation,
a charge for the transmission of newspapers by post was made general
throughout the federated area. The charge met with considerable opposition
from the Maritime Provinces, which thus lost the boon of free transmission.
[314]
It was justified as nothing more nor less than a simple charge for
freight, the remission of which would be to offer a bounty to a particular
industry. The possibilities of usefulness of the Post Office would, it was
argued, be greatly reduced if the service were loaded with the burden of the
gratuitous distribution of newspapers throughout so vast a country; since, if
from the diminution of revenue which such a course must produce, the
department were forced to look to Parliament for assistance, Parliament
would be disposed to discourage the establishment of new offices in the

thinly settled districts, where it was of the greatest importance that they
should be found.[315]
The arguments of members from the Maritime Provinces were somewhat
diverse. They said there was an essential distinction between letters and
newspapers, in that letters were private communications between
individuals, while newspapers were in some measure the organs of
communication between the Government and the people, and furnished the
only means by which to acquire that acquaintance with the law which
everybody was presumed to possess. Newspapers occupied a similar
position to that of schools, and presented one of the easiest channels of
enlightenment. In many cases, for the ordinary folk no other means of
education were open. On them the tax would be an imposition which might
be contrasted, it was said, with the favour accorded to the commercial and
wealthy classes by the reduction in the postage on letters.
It was further argued that in the existing state of the Dominion, owing to the
presence of a certain amount of sectional feeling and mutual hostility
between different portions of the country, which could be attributed largely
to the lack of that sort of information which newspapers could provide, it
would be folly to hinder the freest possible distribution.[316] Moreover, a
postage charge would fall unequally. The large towns and thickly populated
areas would be able to obtain their papers by means of the railroad or other
agency at little cost; but the outlying districts, which ought to be treated
with special favour by the Legislature, would have no alternative to the
payment of postage. The large newspapers would be able to distribute their
issues by express, while the smaller ones would be compelled to use the
post. The "tax" would yield only some $25,000 a year in Nova Scotia; and
for such a paltry sum it surely could not be wise to levy this "tax upon
knowledge," which "of all the heavy burdens laid upon Nova Scotia was the
most oppressive."[317]
These arguments were ineffective, and a rate which averaged half a cent a
copy was imposed. In 1875 the rate was modified, and made a bulk rate of 1
cent a pound, an extremely low rate. The average weight of newspapers at
that time was so small that, in the case of certain typical papers selected by
the Government for the purpose, it was found that the numbers required to
make up a pound were from ten to fifteen. In 1874 the total yield under the

old rate had been only some $36,000. The new rate was therefore likely to
yield only some $6,000 a year, and the advocates of free transmission
argued that as such a small sum would hardly be worth the trouble of
keeping the accounts, the Government, having gone so far, might well have
taken a step further and abolished altogether the postage on newspapers.
The Government defence was that the rate proposed was the lowest
possible, and to mail free the papers published in the various parts of the
Dominion would be to impose too heavy a burden upon the public treasury.
[318]

The Canadian people had only to wait a few years for the boon. In 1882 an
Act was passed "to provide for the free transmission of Canadian
newspapers within the Dominion." No discussion on the measure took place
in Parliament, and authoritative statements of the reasons inducing the
adoption of so generous a policy are not to be obtained;[319] but in well-
informed quarters it is held that, in general, the leniency shown to
newspapers is not due solely to the acceptance by Parliament of the
arguments usually advanced in their favour, plausible and convincing as
they probably are to many minds, but has always been dictated more or less
by fear of the political power wielded by them; or, what is really the same
thing, as a result of direct pressure at Ottawa by the newspaper proprietors,
based on their influence with the electors or the chiefs of parties, and
exercised in their own interests.[320]
In this view, the ultimate step taken in 1882 marked no concession to
popular sentiment, but the climax of the power of the newspaper interest,
and a consummation for which they had long striven.
At the same time the total abolition of postage on newspapers was in accord
with the widespread feeling, which had from an early period found
expression in the Legislatures of the Canadian provinces: the feeling that
newspapers are of great educational value, especially in new countries and
in countries with an extended franchise, such as had been the Canadian
provinces almost from their first organization; that in such countries it was
necessary to educate the sovereign people; and that newspapers afforded the
best and most practicable way.[321]

During the period of free transmission, which continued some seventeen
years, the number and gross weight of newspapers sent through the post
increased enormously, and the privilege was considerably abused.
Numerous publications were constantly appearing demanding free
transmission, and in many cases they were of very questionable character;
that is to say that, while conforming to the letter of the requirements of the
law, they were often not genuine newspapers at all, but mere vehicles for
the distribution of trade advertisements. The vast increase in the cost of
dealing with the quantity of newspapers sent through the mails became a
question for serious consideration. Heavy demands were being made by the
railway companies for increases in the amount of their remuneration for the
conveyance of mails, on the ground of the increase in tonnage due to the
very large numbers of newspapers being sent. The actual statistics of the
Post Office traffic in Canada are illuminating on this point. In 1897 the total
weight of newspapers passing in the mails was 16,500,000 pounds, and the
estimated number of newspapers 175,000,000. For the same year the total
number of letters passing through the post was 123,000,000, and their total
weight 5,000,000 pounds.[322]
In 1898 the Canadian Government desired to reduce the internal letter
postage, which still stood at 3 cents, to the almost universal rate of 2 cents;
[323]
but the loss of revenue which such a reduction would entail was so
great that they were driven to seek fresh revenue to meet the deficiency. In
view of the abuses of the newspaper privilege, and the generally
unsatisfactory position which had developed, this was thought to be a
suitable occasion for the reimposition of postage on newspapers.[324] The
rate proposed was ½ cent a pound. Opposition to the change was made on
the same grounds as in 1867: that newspapers were the real educators of the
people, that the dissemination of intelligence, particularly of political
intelligence, was of the utmost importance, and that no impediment should
be put in the way of their freest possible distribution.
The great necessity for a new source of postal revenue made it impossible,
however, to continue the free privilege in its entirety, and the ½-cent bulk
rate was carried. The free privilege was continued for local papers
distributed within a radius of ten miles, in order to enable the country
papers to compete with the papers of the large towns. The country papers

are very jealous (and perhaps somewhat fearful) of the great city papers,
although the telegraph has given the country papers an advantage in point
of time. This is of great value in a country of enormous distances—
especially in the case of daily papers—but is yet not of vital importance in
the case of weekly newspapers, which do not rely so much on late news.
The competition of the weekly papers of the great cities is severe; and the
radius of competition even of their daily papers is considerable. The letter-
carriers of Ottawa were at that time daily engaged in carrying free
enormous quantities of newspapers published in Montreal or Toronto.[325]
The rate fixed in 1898 was not intended to be permanent; and in 1900, when
the revenue had become sufficiently buoyant to warrant the step, a Bill was
introduced to reduce the postage on newspapers to ⅛ of 1 cent a pound for
transmission in the province or territory of distribution. The general purpose
of the Bill was to reduce the rate for limited distances, and the province or
territory was adopted as the most convenient unit of area. Newspapers were
being posted literally by the ton, and the department thought it unreasonable
to convey car-loads of such mail from ocean to ocean for the same rate as
for any shorter distances within a province.[326] The Bill passed the Lower
House, although it was severely criticized as introducing the vicious
principle of provincial legislation; and "a serious aggravation of the
tyrannical injustice" was that a distinctive tax would be placed on city
publications, while preferential privileges would be given to country
newspapers.[327]
The Postmaster-General explained that with a bulk rate it was possible to
make nice distinctions of rate in regard to distance travelled, which would
be quite out of the question with a rate such as that for letters charged
separately on each individual item; the charge for the transportation of a
letter for a short distance would be so small that no division of coin could
be found to correspond to it, but with matter mailed by the ton and wagon-
load, and paid for by the ton and wagon-load, the charge could well be
adjusted for distance: but he admitted that he had made no calculation as to
whether the ⅛ cent a pound would cover the cost of newspapers within the
bounds of each province.[328] The Bill was rejected by the Senate on
account of the undesirability on general political grounds of introducing any
sort of distinctions based on the provincial boundaries.

The proposal was revived in another form in 1903. It was then proposed to
reduce the postage to ¼ cent a pound on newspapers when the distance of
transmission did not exceed 300 miles. The Postmaster-General said
definitely in Parliament that the rate would not cover the cost, and, further,
that the reduction would involve a loss of revenue of from $50,000 to
$75,000 a year on a total revenue from newspapers of from $100,000 to
$125,000.[329] The reduction was carried; and in 1908 the reduced rate of ¼
cent a pound was extended to all newspapers passing within the Dominion,
when posted in bulk. The privilege is availed of by the publishers of many
periodicals which are virtually nothing more than advertising media; but
this abuse has not assumed serious proportions, and with the finances of the
department in a flourishing state, it has not been felt necessary to curtail the
privilege, although it involves great loss.[330]

NEWSPAPER POST (SECOND-CLASS MAIL) IN THE
UNITED STATES OF AMERICA

A system for the distribution of newspapers by post, analogous, though not
identical, with that which grew up in Great Britain, existed from an early
period in America. There the privilege of franking newspapers was a
perquisite, but it was not the perquisite of one officer, as in England. All
postmasters exercised the privilege as part of their general privilege of
franking all their correspondence, the arrangement being part of their
emoluments as postmasters; and post-masterships were much sought after
by newspaper publishers, who were thereby enabled to obtain free of charge
the advantage of the distribution of their publications by what in most cases
was the best, if not the only, available means.
The most notable example was Benjamin Franklin, who was for nearly
forty years connected with the Post Office in North America, first as
Postmaster of Philadelphia, and afterwards as joint Postmaster-General for
the northern part of North America, and who, throughout this period, was
able to circulate his publications by post free of charge. The Post Office,
especially in regard to the exercise of this privilege, is regarded by

Americans as having been an important factor making for a general
understanding between the colonies, and a conception of the possibility of
common action.[331] As early as 1757 the Crown authorities in the colonies
were looking with a jealous eye on the unrestricted distribution of
newspapers, and were contemplating measures for preventing the
dissemination of objectionable ideas.[332]
As the friction between the colonies and the Mother Country grew in the
years that followed, the Crown postmasters became more and more active
in their endeavours to hamper the distribution by post of newspapers which
published improper intelligence, or proclaimed improper political doctrines.
In 1774 Franklin was dismissed, and his dismissal has been ascribed to a
desire to impede the distribution of his publications.[333]
There is no doubt that the Crown authorities attempted through the
postmasters to prevent the distribution of colonial newspapers, and it was
this action which led in the first instance to the suggestion for the
establishment of an independent American Post Office.[334] The resolutions
of the Continental Congress by which the American office was established
in 1775 did not provide for the transmission of newspapers. Nor does the
ordinance of the 21st October 1782 prescribe any rates for their
transmission; but licenses the postriders to carry them, presumably outside
the mail, the charges made by them for the service to be retained by the
riders as a perquisite.
The statute of 1792 first fixed rates for newspapers, as follows: 1 cent a
copy when sent for distances less than 100 miles, and 1½ cents a copy when
sent for distances greater than 100 miles. This charge was opposed in
Congress, and efforts were made to legalize free transmission by extending,
so as to cover the transmission of newspapers, the general privilege of
franking conferred by the Bill on members of Congress, on the ground that
as the Government of the country was a government of opinion, which
always depended ultimately on the suffrages of the people, much greater
reliance was to be placed on the confidence of the people than on any other
circumstance. Such confidence could only result from the fullest
information, which the people had a right to expect, not only as regards the
actions of the Government but as regards the principles on which they were
grounded.[335]

Some members were disposed to approach the question from the financial
side, and contended that the rates proposed were not sufficient to discharge
the expense of the service. The middle way between economic rates and
free transmission was finally adopted.
An Act of 1794 amended the rates on newspapers and provided a further
special rate for magazines and pamphlets. Newspapers might now pass
from any one place to any other within the same State for 1 cent; magazines
and pamphlets at 1 cent a sheet for distances not exceeding 50 miles; 1½
cents a sheet for distances over 50 miles and not exceeding 100 miles; and 2
cents a sheet for any greater distance. A suggestion was made in Congress
to reduce the newspaper rate to half a cent for distances not exceeding 100
miles, and 1 cent for any greater distance; on the ground that it was
desirable to encourage the distribution of newspapers from the seat of
Government and the large towns, since such papers must contain more
complete information than the country publications, which could only
publish selections from the metropolitan papers. There was, however, a
feeling that country papers performed a useful function and should be
encouraged.
The rates on magazines were altered in 1825 to 1½ cents a sheet for any
distance not exceeding 100 miles and 2½ cents for any greater distance,
when published periodically and sent to subscribers; and 4 cents on each
sheet for distances under 100 miles, and 6 cents a sheet for any greater
distance, when not published periodically. In 1845 the free privilege for
newspapers was first introduced, those of not more than 1,900 square inches
in size, posted by the editors or publishers, being allowed to pass free
within 30 miles of the place of publication. Smaller newspapers, if
conveyed more than 30 miles, were charged the rates fixed by the Act of
1794 (which had been re-enacted by a statute of 1825); and newspapers of
greater size were charged a uniform rate of 2 cents without regard to
distance. Pamphlets, magazines, periodicals, and all printed or other matter,
were to be charged by weight: 2½ cents for the first ounce, and 1 cent for
each additional ounce or fraction of an ounce, without regard to distance.
The free privilege for local newspapers was withdrawn in 1847, except as
regards copies exchanged between publishers. The latter privilege was
continued from a desire to assist the country publisher, who seems always

to have had friends in Congress, and who was in the habit of obtaining
much of the information published in his papers from the great Atlantic
cities, and other large towns which were centres of political or other
interests. The free privilege was not long withheld.[336] An Act of 1851
again extended it to all weekly newspapers sent from the office of
publication to bona fide subscribers within the county where published,
provided the newspaper did not exceed 3 ounces in weight; with a scale of
postages graduated according to distance for papers sent out of the county
where published. A graduated scale for pamphlets, periodicals, magazines,
and all other printed matter, was also established by this Act. In the
following year a rate of 1 cent was fixed for each newspaper, periodical,
unsealed circular, or other article of printed matter, not exceeding 3 ounces
in weight, sent to any part of the United States; and for every additional
ounce or fraction thereof, 1 cent additional. In 1861 the rate of postage on
any newspaper, periodical, unsealed circular, or other article of printed
matter, not exceeding 3 ounces in weight, conveyed over the overland route
between any State or Territory east of the Rocky Mountains and any State
or Territory on the Pacific, was made 1 cent. The letter rate between the
same areas was 10 cents per ½ ounce.
A statute of 1863 classified mail matter, defining three groups. Newspapers,
magazines, and pamphlets fell into the second group, which comprised all
printed matter issued at stated intervals, but different rates were fixed for
different sections of such matter. On printed matter issued weekly and sent
to regular subscribers, the rate was 5 cents a quarter for publications not
exceeding 4 ounces in weight, with an additional rate for every additional 4
ounces or fraction thereof. If issued seven times a week, the rate was 35
cents a quarter for every 4 ounces. If issued less frequently than weekly, the
charge was 1 cent a copy not exceeding 4 ounces in weight, and small
newspapers might be sent in packages and charged the same rates by
weight. On transient[337] second-class matter, and miscellaneous matter of
the third class—the third class included all other printed matter—the rate
was fixed at 2 cents for each 4 ounces or fraction thereof.
The rates of 1863 were slightly modified in 1872, and a local delivery rate
of 1 cent was established for newspapers. Two years later a new method of
charging postage on newspapers and periodicals posted by publishers or
newsagents was introduced. Instead of being charged on each individual

packet, postage was to be charged on the gross weight of the newspapers
posted by a publisher, irrespective of the number of separate packets to be
handled. The rate was 2 cents a pound on newspapers and periodicals
published weekly, and 3 cents on those issued less frequently than once a
week. These rates only applied to such newspapers and periodicals as were
mailed from a known office of publication, or news agency, to regular
subscribers or newsagents, and did not apply to those for local delivery. By
a statute of 1876 publications designed primarily for advertising purposes,
or for circulation free, or at nominal rates, were made third-class matter, and
thus excluded from the privilege. In 1879 the present rate of 1 cent a pound
(bulk rate) and a revised classification were established. Matter was
admitted to the second class on the following conditions:—
First.—It must regularly be issued at stated intervals as
frequently as four times a year, must bear a date of issue, and
must be numbered consecutively.
Second.—It must be issued from a known office of publication.
Third.—It must be formed of printed paper sheets, without
board, cloth, leather, or other substantial binding, such as
distinguish printed books for preservation from periodical
publications.
Fourth.—It must be originated and published for the
dissemination of information of a public character, or devoted to
literature, the sciences, arts, or some special industry, and having
a legitimate list of subscribers; provided, however, that nothing
herein contained shall be so construed as to admit to the second-
class rate regular publications designed primarily for advertising
purposes, or for free circulation, or for circulation at nominal
rates.
In 1894 the privilege was extended so as to include under certain conditions
the periodical publications of benevolent or fraternal societies; and again in
1900, to include the periodical publications issued by State departments of
agriculture.

It was provided by the statute of 1879 that a supplement may be enclosed
with a second-class publication, without subjecting it to extra postage,
provided that it is germane to the publication which it supplements, that is
to say, is matter supplied in order to complete that to which it is added or
supplemented, but omitted from the regular issue for want of space or time,
or for greater convenience. It must, however, in every case be issued with
the publication.
Since the establishment of these conditions and rates, there has been a
steady and growing increase in the amount of second-class matter sent
through the mails. In 1879, under the old rates, the total weight sent at the
pound rate was 51,125,500 pounds. In the following year the total weight
was 61,822,629 pounds; and by 1910 the total had increased to 817,772,900
pounds, that figure representing an increase of no less than 94,539,718
pounds on the total for 1909.
During the whole of this period the accounts of the Post Office in the
United States had in two years only (in 1882 and 1883) shown a surplus of
revenue over expenditure. In view of the vast quantity of matter sent in the
mails at very low rates, the question naturally suggested itself whether,
seeing that it was necessary year by year to call on the public treasury for
funds to meet the deficiency in the Post Office accounts, it would not be
practicable, and equitable, to obtain an increased revenue from this class of
traffic. The fact that considerable abuses of the second-class mail privilege
had grown up made consideration of the question the more necessary.
Periodicals obtained so great a privilege as compared with ordinary books,
that publishers sought devious ways to obtain the advantage of the pound
rate. Books termed a "library" were issued periodically, with a frequency
sufficient to meet the requirements of the Act, numbered in series, and
devoted to literature or science; were issued from a known office of
publication, and with a list of subscribers. Complying thus with all the
requirements of the Act, there seemed no ground on which these
publications could be refused admission to the second-class privilege, and
they were accordingly entered. The practice grew, and a multitude of
libraries, comprising books on every conceivable subject, were distributed
through the mails as second-class matter. The Act permitted the posting of
sample copies, and as no limit to the number of such copies was fixed, the

mails were burdened with vast quantities of sample copies of publications
which, while complying with the letter of the statute, as did the "libraries,"
were in reality mere advertising media. The subscription list was extremely
small in comparison with the number of sample copies sent out, and in
many cases the subscriptions had been obtained by the offer of premiums at
least equal in value to the subscriptions. Another abuse appeared. Under the
law, copies of newspapers and periodicals mailed under the second-class
privilege which were found to be undeliverable were, when returned to the
publisher, liable to postage at the rate of 1 cent for each 4 ounces; but
newsagents had the right to send second-class mail to one another, and in
order to avoid the higher rate on returned copies, the publishers arranged a
scheme by which the copies were returned by one newsagent to another
newsagent whose office was near by the publisher's office. These abuses
assumed such proportions that in 1889 the Postmaster-General, Mr.
Wanamaker, brought them to the notice of Congress and asked a remedy.
Nothing was done, however. In 1892 Mr. Wanamaker again complained of
the same gross abuses, and especially of the book abuse, which had then
become, he said, "a practice of so long standing that it has crystallized into
law, allowing to paper-covered books which are simply numbered, and
dated, and designated as periodicals, though in reality not so, the privileges
of genuine periodicals."[338] He also attacked with vigour the sample-copy
abuse.[339]
Several Postmasters-General caused estimates to be made of the actual cost
to the Post Office of the handling and transmission of the second-class mail.
An estimate made in 1894 indicated the cost of transportation for all mail
matter as 8 cents a pound, and on that basis second-class matter at that time
involved a loss of nearly 17 million dollars for transportation alone. In 1897
the total loss on account of the second-class mail was estimated at 26
million dollars. A further estimate made in 1901 indicated that the cost of
transportation of second-class matter was at least 5 cents a pound, and that
the cost of handling was a further 2 cents, giving a total cost of 7 cents a
pound on matter for which postage at the rate of only 1 cent a pound was
paid.[340]
In 1905 Postmaster-General Cortelyou submitted an estimate which put the
loss on second-class matter at some $27,000,000 a year; and he

recommended that the whole question should be considered by Congress,
and a law enacted which should simplify the tests by which mail matter was
classified.
These vigorous and oft-repeated recommendations of successive
Postmasters-General, though not resulting in legislation, at length achieved
a result in the appointment in 1906 of a joint Commission of Congress on
second-class mail matter. The Commission held meetings in New York, and
took evidence from the Post Office department and from representatives of
each national organization of publishers in the United States. Their report,
presented in January 1907, was in no sense conclusive. Their chief
difficulties had arisen from the impossibility of obtaining from the
department any statistics as to the cost of mail matter class by class—a
difficulty which is inherent in Post Offices conducted on the modern system
of accounting for postage of all classes by postage labels of the same type,
and handling all classes of matter promiscuously; and their chief
recommendations were that the department should take fresh statistics with
regard to all mail matter,[341] and make an analysis of operating expenses
with a view to apportionment between the various classes of mail matter.
The Commission was so dissatisfied with the department's position with
regard to the ascertainment of a proper division of the total expenses, that
they recommended the appointment of a further Commission to examine
thoroughly "the whole business system" of the Post Office, and particularly
to determine, if possible, firstly, the actual cost of all the postal services;
secondly, the proper apportionment of that cost between the various classes
of mail matter; and thirdly, what modifications of the system of
bookkeeping and accounting were desirable.[342]
By a statute of the 2nd March 1907, Congress authorized the appointment
of a joint Commission "to make an investigation into the business system of
the Post Office and postal service." The same gentlemen who had composed
the Commission of 1906 were appointed to the new Commission, but its
labours led to no practical result.
The other recommendation of the Penrose-Overstreet Commission, viz. that
further statistics should be obtained with regard to second-class matter, was
also adopted by Congress, and the statute authorizing the Commission on
business methods also authorized the taking of statistics of the weight,

number of pieces, and average haul of all classes of mail matter, separately,
and the average load of all cars by which it was forwarded by railway.[343]
With the statistics so obtained as a basis,[344] the department undertook the
task, which, as stated by the Commission of 1906, had previously been
impossible of performance, of calculating the actual working cost
assignable respectively to the various classes of mail matter. A Committee,
which was appointed in October 1908, and reported in November 1909,
arrived at the conclusion that the cost of dealing with second-class mail
matter was about 9 cents a pound. The whole subject was before the
Committee on the Post Office and Post Roads of the House of
Representatives in January and February 1910. Many representatives of the
publishing interest attended and gave evidence, and the department's
calculations were subjected to examination and criticism.[345]
Congress and the Executive were still, however, unable to arrive at a
satisfactory conclusion on the question, and on the 4th March 1911 a joint
resolution of Congress authorized the appointment of a further Commission
on second-class mail matter, this time not a Congressional Commission. A
judge, the president of a university, and a business gentleman were
appointed to the Commission, which held sessions in New York in the latter
part of the year, and took evidence from the Post Office department and
representatives of the publishing interests. They found that the data
available were insufficient to enable them to determine the total cost to the
Post Office of the services performed in respect of second-class mail
matter; but they were able to estimate the cost in regard to certain items of
the expenses of the Post Office. The cost under those headings, which must,
of course, be less than the total cost, they found as 5½ cents a pound for
ordinary paid-at-the-pound-rate matter and 5 cents a pound for free and
transient matter.[346] That part of the general expenses of the service which
the Commission were unable to assign satisfactorily between the various
classes of mail matter was estimated by the Post Office department to
amount to over 2 cents a pound for second-class mail matter.[347] On this
basis, of course, a heavy increase in the rate of postage would be warranted;
but in view of the uncertainty of the effect of the competition of the express
companies which would result from a large increase in the rate of postage,
of the fact that the publishers' business established in faith of constancy of
the postage would seriously suffer from such a sudden increase, and of the

well-known policy of encouraging distribution of educational literature,[348]
the Commission hesitated to recommend any large increase, and contented
themselves with recommending that the rate be raised from 1 to 2 cents a
pound.
Given that the actual cost of the handling and transporting of second-class
mail matter is on the average 9 cents a pound (regarding which the
department is quite satisfied) and a rate of postage for such matter of 1 cent
a pound, the department has, on the face of things, a strong case; and it is
not necessary to ascribe other motives in order fully to explain and justify
the course it has adopted. But the publishers felt that they were not
favourably regarded by the Republican Administration. They claim, and the
claim is admitted in influential quarters immune from pressure from them,
that they are largely responsible for the establishment of the insurgent wing
of the Republican party, whose action against the late Administration
proved so disastrous to the fortunes of the party. In the course of these
political activities they have made enemies; and they conclude that in the
Republican party, many of whose members have been disgraced, if not
indeed driven from public life, there has arisen a strong feeling against the
publishers. The activity of the department against the second-class rate is
alleged to have begun after the publication of articles in the magazines
exposing the corruption in the cities, and incidentally reflecting on members
of the Republican party. Moreover, the department's most drastic
recommendations have been directed not against second-class matter as a
whole, but against the periodicals; and they have been made under the guise
of preventing, as contrary to the intent of the statute, the dissemination at
the second-class rate of vast quantities of advertising matter. Thus, the
department has recommended that that portion of periodicals which
consisted solely of advertising matter should be charged at a higher rate
than the rest of the publication (which would be allowed the second-class
rate), while nothing at all was proposed as regards ordinary newspapers, a
discrimination which cut the publishers of the periodicals deeply.
The representations of the Post Office department, extending over some
twenty years, and of most decisive and emphatic character, have not yet
succeeded in obtaining legislation for the reform of the second-class mail
scheme; but some few years back the department arrived at the conclusion
that the authority of the existing law was sufficient to enable the more

flagrant abuses to be checked, if not eliminated. A series of rulings were
thereupon promulgated, and by this means some of the worst abuses have
been removed, such as, for example, the transmission as second-class
matter of "libraries," issued as periodicals. These rulings were resented by
the publishing interests, with whom it was a source of great complaint that
the interpretation of the statute defining second-class mail matter was left to
arbitrary decision by officials of the department.[349] The intense feeling in
America against any sort of bureaucracy, and especially against a
bureaucracy of the central Government, leads to a natural jealousy of the
exercise of this power, and as a remedy the suggestion was advanced that
provision should be made, first, for questions of the interpretation of the Act
to be decided in the first instance by a permanent Commission located at
Washington, on which the publishers should be represented; and secondly,
that there should be an appeal from the decisions of this Commission to the
ordinary courts of justice.
The department admits that its position with regard to the interpretation of
the statutes is unsatisfactory. Under the existing system, all manner of
questions are asked regarding the private business of the publisher, and the
decisions from Washington are often delayed.[350] But as against the
contention of the department, which was for an amendment of the law, the
publishers contended that the law, while no doubt not altogether perfect,
was in the main sound and just, and the rate of postage of 1 cent a pound
was as great a boon as was ever conferred by Congress. They denied that it
was in any sense a subsidy.[351] They also denied the existence of a
deficiency, and contended that so far from its being true that the Post Office
business involved a loss, there was each year a profit of millions of dollars.
This result they arrived at by estimating the cost to the Post Office of the
distribution of Government free matter, and the cost of the rural free
delivery, which they added together, setting the total against the deficit
shown in the published accounts of the department. By this means a balance
of profit was obtained for each year. The estimated postage payable at the
usual rates in respect of the free matter was of course an item legitimately
to be added to gross revenue; but it was doubtful whether the cost of the
rural delivery service could be deducted from gross expenses, as the
publishers insisted, on the ground that the service was "extraordinary."

The publishers made a further allegation. At that time the express
companies cut even the very low existing cent-a-pound rate on second-class
mail matter for short distances, and if that rate were raised the range of their
competition would be extended. With a 2-cent rate a much greater
proportion of the traffic would inevitably fall to them. This would, of
course, be very advantageous to the companies, to whom, as to railways,
any increase in the volume of traffic handled would be welcome. These
express companies had for many years been faithful supporters of the
Republican party, and behind the suggestion to increase second-class rates
the publishers were convinced there was a desire on the part of the leaders
of the party to reward their faithful allies.[352]
But perhaps the chief contentions of the publishers, which the Post Office
was bound to some extent to admit, and would in any case find it difficult to
meet, were the claim that newspapers create a vast quantity of first-class
mail; and the claim that since the payment made to the railway companies
in respect of the transportation of the mail is based on a sliding scale,
decreasing as the volume of traffic increases, the weight of second-class
matter brings down appreciably the rate actually to be paid.
Some who appeared before the Commission of 1911 were inclined to go
beyond these general contentions as to the relative claims of second-class
matter, and to assail the whole administration of the department from the
economic standpoint; challenging especially the relations with the railway
companies, and arguing that the payment made for the conveyance of mails
was not equitable when compared with the charges made by the companies
for similar services performed for the express companies.
Notwithstanding these contentions, there can be no question that the
transmission of the second-class mail at the present rates involves the
department in heavy loss; and that Congress, not unaware of this, attaches
importance to the advantages which a low rate for such matter confers. The
Commission were satisfied on both points. It is, however, doubted by many
whether the effect of this privilege has been altogether salutary from the
educational point of view. It has encouraged to an almost incredible extent
the publication of periodical magazines, and many of these magazines are
of a high order of merit as periodical publications. The United States leads
the world in the publication of this kind of matter.[353] But the reading

matter which is found in these publications is to a large extent light and
trivial. The publication of serious intellectual works has shown little
advance in recent years,[354] and there is a fairly widespread feeling in
America that the two developments are connected. But that is a matter
difficult to determine.
In any case, many people are proud of the development in periodicals, and
the department, in spite of its efforts, has so far failed to secure any increase
of rate. Although the Postmaster-General and the President[355] adopted the
recommendations of the Commission of 1911, and urged their consideration
on Congress, Congress has not taken action, and has, indeed, forbidden the
department to extend certain arrangements for the use of freight trains for
the transmission of second-class matter, whereby a saving of expense could
be secured, a phenomenon probably explicable by the constitution of
American politics.[356]

NEWSPAPER POST IN FRANCE

In France, printed matter, whether issued periodically or otherwise, seems
always to have enjoyed a lower rate of postage than the written letter.
Before the Revolution there was diversity of practice as regards the rate of
postage charged on newspapers. Some privileged papers paid only 5 or 6
deniers the sheet, while others paid 8 deniers. All the rates were purely
arbitrary. When the Committee on Public Taxation of the National
Assembly considered the question of fixing the rate for newspapers, they
considered not only how to regularize the rate, but also whether they could
raise it. Viewed from the economic standpoint, the rate was thought by
some to be inadequate.[357] The Committee was satisfied that not only
would the new rates cover the cost of the service, but that there would also
be a slight profit, although they felt it would not be proper, or even possible,
to make that part of the business of the Post Office a really lucrative source
of revenue.[358]

The decree of 17-22 August 1791 established the rate of 8 deniers per sheet
for daily newspapers (and other daily publications), and 12 deniers per
sheet for other periodical publications. Pamphlets or unbound books were
charged a sou the sheet. Bound books were not allowed to pass by post. It is
unlikely that these rates were remunerative. They were modified several
times during the next few years; but although the modifications were in the
direction of increase, the rates for newspapers still compared very
favourably with the rates for letters.[359]
A law of 6 messidor, an IV (1795), established a rate of 5 centimes for
newspapers and other periodical publications delivered in the place of
publication, and 10 centimes for all other destinations; but this
discrimination was removed by the law of 4 thermidor, an IV, which
substituted a general rate of 4 centimes the sheet. An attempt was made by
the administration to raise the rates on newspapers and books. As regards
newspapers the proposal was, however, rejected by the Conseil des
Anciens.
In 1796 a new rate for newspapers and other periodical publications was
established, viz. 4 centimes for each sheet. For other printed matter the rate
was fixed at 5 centimes per sheet.[360] This law failed to prescribe the limits
of size of the sheets according to which postage was to be charged, an
omission supplied by an ordinance of the 5th March 1823, which fixed the
dimension of the sheet at 24 centimetres by 38. The newspapers interested
tried to resist this restriction, contending that the ordinance was illegal,
because the laws of 1796 prescribed no limit and the Government could not
impose one by ordinance: for such a purpose a new law was necessary.
The law of the 27 frimaire, an VIII (17th December 1799), had established
a scale of charges according to weight, and the rates were fixed according to
the distance actually traversed, under the arrangements then existing. This
restriction, which was unfortunate, because the services existing during the
Revolutionary period were not of a character to serve as a basis for the
future, was felt to be onerous, and numerous complaints were lodged by
communes which felt themselves placed under a disadvantage.

In 1827 the rates were revised and placed on a more stable basis.[361] The
principle first established in 1791, of charge according to the distance

between two places reckoned as the crow flies, was re-established; and a
provision was inserted in the law to meet the difficulty which had arisen as
to the legality of the ordinance of 1823, purporting to fix the size of the
sheets on which the postage on printed matter was calculated. Postage on
newspapers and periodicals was made 5 centimes for each sheet of 30
square decimetres for all destinations; but the charge was reduced by one-
half for newspapers and periodicals circulated within the department where
they were published, the reduced rate being established with the view of
protection of the country Press, whose subscribers were in general local,
against the competition of the Parisian Press. In 1830 the rate of 5 centimes
the sheet for newspapers and other periodical publications was reduced to 4
centimes. The rates of 1827 remained otherwise unchanged.
In 1850 the newspaper tax and the postage were assimilated—that is to say,
newspapers were subjected only to one tax, and payment of that tax secured
the right of transmission by post. The tax was at the rate of 5 centimes per
sheet of 72 square decimetres or less for newspapers published in the
departments of Seine and Seine-et-Oise, and 2 centimes for those published
elsewhere. All newspapers on which a tax of 5 centimes was paid, were
entitled to free transmission by post throughout France. Those on which a
tax of 2 centimes was paid, were entitled to free transmission by post within
the department in which they were published and the adjoining
departments. In order to obtain transmission by post throughout France, an
additional sum of 3 centimes per paper must be paid on these latter
newspapers.[362] The Minister of Justice, in introducing the measure in the
National Assembly, explained that it would serve a double purpose: on the
one hand it would give an increase of revenue of some six millions a year;
and on the other it would safeguard society against detestable doctrines,
because it would fall specially on those evil newspapers and books[363]
which were circulated at a low price in town and country, propagating
prejudices and error, exciting the passions and corrupting the conscience of
the public.[364]
Louis Napoleon Bonaparte, in 1852, desirous that there should be no
obstacle in the way of his ultimate assumption of absolute power and the
Imperial crown, issued a decree further restricting the Press in France. The
publication of newspapers or periodicals dealing with political or economic

questions, unless authorized by the Government, was forbidden; and the
rates of postage in force prior to the law of 1850 were imposed on
newspapers, in addition to the tax imposed by that law.[365] The same
principles led to the discrimination introduced in 1856 between political
and non-political papers. The former were subjected to a higher rate of
postage than newspapers of a non-political character, because the
Government felt it to be necessary that there should be some moderating
influence to check the effect of political journals in times of intense political
excitement, and adopted this expedient.[366]
The rates for printed matter had for a long period caused considerable
confusion, and given rise to many complaints from members of the public.
They were still determined according to the linear surface of the sheets, a
method which was found to cause considerable embarrassment and
difficulty in its practical application. To all other classes of postal traffic the
more logical and more convenient principle of charge according to weight
had already been applied, and in 1856 this principle was applied also to
printed matter of all descriptions. Weight was made the basis of the charge,
without reference to superficies or to distance, except that for political
reasons the privilege of half-rates for newspapers circulating in the
department in which they were published was continued.[367] The reduction
of the actual rates made by this law was slight, and was estimated not to
have any appreciable effect on the total revenue. In any case the question
was "regarded less from the financial point of view than from the point of
view of the satisfaction which it would give to the needs of commerce and
industry and of private intercourse in general."[368] The new rate was 1
centime for each 10 grammes, with a minimum of 4 centimes for political,
and 2 centimes for non-political newspapers.
This reduction of rate, together with the reduction for other printed matter,
for samples, and for commercial papers, resulted in a large increase in the
number of bulky packets sent by post. In order to ensure prompt delivery, it
was found necessary in Paris to separate to some extent the letter-post
traffic from the traffic sent at the lower rates, and the principle of providing
a separate staff of postmen for the delivery of newspapers, magazines,
samples, etc., was introduced.[369] The application of this principle has

since been extended, and the two kinds of traffic are now dealt with in Paris
altogether separately, by separate staffs of officers.
The newspaper rates were next revised in 1878. The discrimination between
political and non-political newspapers was abolished, but the privilege
accorded to local newspapers was continued. The new rates were:—
1. Two centimes for the first 25 grammes and 1 centime for each
further 25 grammes or fraction of 25 grammes for newspapers
published in the departments of Seine and Seine-et-Oise and
circulating outside the department where published; and for
newspapers published in other departments and circulating
outside the department where published and the adjacent
departments.
2. One centime for the first 25 grammes and ½ centime for each
additional 25 grammes or fraction of 25 grammes for
newspapers published in the departments of Seine or Seine-et-
Oise and circulating within the department where published.
3. One centime for the first 50 grammes and ½ centime for each
additional 25 grammes or fraction of 25 grammes for provincial
papers other than those of Seine and Seine-et-Oise, circulating
within the department where published or adjacent departments.
The existing rate for inland newspapers, which is based on the law of the
16th April 1895, is as follows:—
Two centimes for each copy up to 50 grammes, and 1 centime
for each 25 grammes or fraction of 25 grammes above 50
grammes.
Only half these rates is charged when the papers circulate within the
department in which they are published or the adjacent department.

In 1908[370] the rates in respect of newspapers sorted and bundled according
to the offices of destination and the post routes, were reduced to 1 centime
for the first 50 grammes and 1 centime for each additional 25 grammes or
fraction of 25 grammes—half this rate being charged for papers circulating
within the department of publication or the adjacent departments.

The value of a centime is roughly one-tenth of a penny. It is hardly
necessary, therefore, to point out that these rates are divorced entirely from
economic considerations, and are to be explained only on political and
administrative grounds.[371] It has been estimated that in 1895 the loss on
printed matter of all kinds was 36 million francs.
In France, as in other countries, the privilege of transmitting periodical
publications at a specially low rate of postage was much availed of for the
transmission of advertising matter, of publications which were essentially of
the character of catalogues or prospectuses rather than newspapers properly
speaking. A law of 1908,[372] passed with a view, among other things, of
minimizing this abuse of the privilege, restricted the application of the
reduced rate to publications issued not less frequently than once a month.
The new regulation had good results, restricting, as was desired, the number
of periodical publications not legitimately entitled to the privilege. It had
also a result which was regarded by Parliament as undesirable: it shut out
from the privilege the numerous quarterly journals of scientific and learned
societies.[373]
By the same law the minimum rate of postage for small packets of printed
matter sent under loose band, the imprimés non urgent, was raised from 1
centime to 2 centimes. The result of this was a little unsatisfactory. In order
to evade the higher charge, advertisers took to printing in newspapers,
circulating at 1 centime, announcements formerly sent out separately as
loose leaflets, a manœuvre which struck doubly: not only was the legitimate
rate of postage evaded, but instead of dealing with the matter as non-urgent
at its convenience, the Post Office was obliged to treat it in the same way as
all other newspaper matter—that is, to give it the benefit of equal treatment
with matter sent at the letter rate.

Note on Supplements.

A decree of the 24th November 1860 gave to the two Chambers the
constitutional right of discussing the policy of the Government at home and
abroad, and as a natural corollary of this it was desired to secure the
untrammelled publication and distribution of reports of the debates. This
was attained by exempting from postage the supplements of journals when

they were devoted entirely to the reproduction of the official reports of the
proceedings of the Chambers, the motifs des projets de lois, reports of
parliamentary commissions, or official documents deposited by the
Government at the office of the Chambers.
The Press law of the 11th May 1868 extended the exemption to
supplements devoted to the extent of one half to the publication of reports
of parliamentary debates or documents, but only on condition that the
supplements contained no advertisements. The privilege was continued by
the law of 1878.[374] In order to obtain the privilege the supplements must
be printed on sheets detached from the main publication, but they must be
enclosed with the publication. They must not exceed in size that part of the
paper subject to postage, and if sent separately, they are liable to postage at
the ordinary rate. In 1869 the official reports of parliamentary debates were
exempted from postage when sent by the printer to the editors of country
papers, or by those editors to their subscribers, if enclosed with the local
paper.
M. Jaccottey's view is that in order to conform to the spirit of the law, the
rate for periodicals ought to be confined to newspapers and other periodical
publications devoted to letters, science, and arts; and that it is an abuse of
the privilege that commercial advertising should avail itself of the privilege
by, say, publishing at regular intervals successive editions of library
catalogues, or by borrowing the titles of illustrated journals, their outside
covers, and the methods of distribution, and inserting in them prospectuses
which are not of the nature of periodicals.[375]
Ordinary supplements may be enclosed in newspapers. They are weighed
with the paper, and postage is charged according to the total weight. If sent
separately, they are regarded as a number of the paper, and postage is
charged accordingly. In order to obtain the benefit of the privileged rate, all
supplements must bear printed indication of the fact that they are
supplements, and must bear the title and date of the main paper.[376]
These definitions were amplified by the administration in 1896 by an
instruction (No. 468) which provided that detached advertisement sheets of
any sort, issued exceptionally (feuilletons, fiction, stop press news, late
articles, pictures, artistic engravings, or others), which are the genuine

production of the publication, whatever the size and shape or pagination,
ought to be regarded as fulfilling the conditions prescribed by law for
supplements and to be admitted to the privilege of the reduced rate.

NEWSPAPER POST IN GERMANY

From the time of their first publication in Germany, newspapers have been
distributed through the post. Little is known of the precise arrangements
under which they were at first transmitted, but there is no doubt that they
were accorded privileged conditions as compared with ordinary letters. The
postmasters were themselves largely interested in the publication of
newspapers.[377] By 1712 the conduct of newspaper businesses by
postmasters had become recognized as a common and long-established
arrangement.[378]
The distribution of the newspapers was largely made through the post, and a
rate of charge, built up of two elements, came into existence. The first
element was the "discount" (der Rabatt). This was a payment made by the
publisher to the postmaster as remuneration for the work of the latter in
connection with the posting and despatch of the papers and the collection of
subscriptions. This discount was arranged between the postmaster and the
publisher, and generally took the form of a fixed percentage proportion of
the published price (Erlasspreis). The second element was the "percentage"
(die Provision). This was in addition to the published price. It was collected
from the addressee, and belonged partly to the postmaster at the place of
destination and partly to the postmaster at the place of publication.[379] The
rates were fixed by the postmasters at their discretion, and gross
irregularities and anomalies in the rates resulted. Public complaint arose,
and it was found necessary for the State to assume control of the traffic and
fix definite rates of charge. This course was first adopted in Prussia in 1821,
when the following rates were established[380]:—

4 pf. for each whole sheet of the primary publication (Hauptblattes)
2½ pf. " half " " " "

1½ pf. " quarter " " " "
1½ pf. " whole " supplement
1 pf. " half " "

This method of charge did not, however, prove altogether satisfactory,
because the term "sheet" was not defined with any degree of precision. It
was thought that a better basis for the rate might be found in the price at
which the newspapers were sold to the public, because, it was argued, the
price must stand in exact proportion to the number and size of the copies,
and also to their real value. Accordingly, in 1848 the rate was fixed
generally at 25 per cent. of the published price.[381] At a somewhat later
date this rate was reduced to 12½ per cent. of the published price in the case
of newspapers appearing less frequently than four times a month.[382] In
1871 the minimum yearly rate payable in respect of any newspaper was
fixed at 4 sgr.[383]
The application of this tariff resulted in many cases in considerable
discrepancies between the amount charged and the service rendered. The
improvements in the manufacture of paper and in the methods of printing,
particularly the introduction of the rotary press, had cheapened the
processes of production, and led to a great expansion of the newspaper
trade. With this expansion came a more than proportionate expansion of the
business of advertising. The result was that, as in England and America, the
newspapers increased in bulk; but so far from there being a corresponding
increase in price, there was in point of fact a very considerable decrease.
Moreover, advertisements became a more important source of revenue than
the subscriptions themselves. A rate of charge based on the selling price,
which might have been reasonable when newspapers were produced under
the old conditions, was totally inapplicable under the altered circumstances.
[384]

The financial results proved extremely unsatisfactory. From the causes
indicated, the average weight of the individual copies of newspapers
continued to increase, while at the same time the price (and with the price,
the postage) continued to decrease.
In 1897 the administration of the Imperial Post Office estimated that the
total cost of the transmission of newspapers by post in Germany, for staff,

post offices, transport, equipment, etc., was 6,178,362 M., or about 66/100
pf. per copy.[385] The number of newspapers transmitted by post in
Germany was at that time about a thousand millions annually, and the total
postage received in respect of them was less than 5 million M., or on the
average about ½ pf. per copy;[386] in the case of a number of papers the
postage was as little as 1/12 pf. per copy.[387] The annual loss to the
administration on account of the newspaper traffic was therefore on the
average 16/100 pf. per copy, or a total of about 1,600,000 M. a year.
For many years the question was before the Budget Commission of the
Reichstag, and a change soon followed the publication of this estimate.
New rates, based on entirely new principles, were established in 1899.
When the Act establishing the new rates was in preparation, the Imperial
Post Office administration based their proposals mainly on the principle that
the charges should cover the cost of the service rendered.[388] The original
proposals to the Reichstag were accordingly calculated to secure an
increased revenue of 1¼ million M. The Budget Commission, however, so
modified the proposals as to reduce this amount to 300,000 M., and further
modifications were made in the Reichstag itself, with the result that under
the new rates the administration was left to work with an even greater loss
than formerly.[389]
The large publications of the great cities, supported as they were to a large
extent by the advertisements they carried, had obtained a wide circulation,
to the prejudice of the provincial Press.[390] With a view to affording some
measure of protection to the provincial Press as against the Press of the
large cities, proposals were made in the Reichstag for the adoption of a zone
rate for newspapers on the ground that the cost to the Post Office for
distributing newspapers at great distances was appreciably greater than the
cost of distribution in the case of newspapers sent short distances only, and
that a zone rate would therefore be just.[391] The authorities were not,
however, prepared to adopt this proposal, which they characterized as
retrograde and unnecessary.[392] They considered that if the rate were raised
for the longer distances the traffic would be taken away from the Post
Office by private enterprise, and if the rate for the shorter distances were

further lowered, the revenue from newspapers would be still further, and
undesirably, reduced.
The new scheme of rates of 1899 was based on three considerations: the
length of time covered by the subscription, the frequency of issue, and the
weight of the newspaper; and the rates were reckoned in the following way:
—
(a) Two pf. for each month of sending.
(b) 15 pf. yearly for papers appearing once weekly or less
frequently, and 15 pf. yearly more for each further publication
weekly.
(c) 10 pf. yearly for each kilogramme of the yearly weight,
subject to a free weight of 1 kilogramme yearly for each of so
many editions as the rate (b) is applied to.[393]
The weight for any year was to be fixed according to the actual weight of
the numbers of the paper during the previous year, and for new publications
the rate was to be applied quarterly on the basis of the weight of such
numbers as had appeared. The publisher was required to deposit with the
Post Office a complete copy of each issue for the purpose of calculating the
weight charge.
Financially, the result of the rates has been unsatisfactory; the amendments
of the proposals of the postal administration which were made by the
Reichstag could hardly have had any other effect. From the year 1871 to the
year 1902 the increase in the number of newspapers was 508 per cent.
(1871, 202⅘ millions; 1902, 1,157 millions), but the increase in newspaper
postage was only about 378 per cent. (1,760,326 M. in 1871 and 6,659,735
M. in 1902); and if the cost of the service remained approximately the same
as in 1897, which there is little reason to doubt, the loss to the
administration was about a million Marks.
In the case of a number of papers a higher rate of postage became payable;
but in the case of some of the expensive illustrated and scientific
publications the new rate represented a considerable reduction. Thus, in one

case, the rate became 2 M. 9 pf. instead of 96 pf. yearly, while in another
the rate was reduced from 7 M. 20 pf. to 50 pf. yearly.[394]
But the reduction of rate did not represent the whole disadvantage. The
greater part of the issue of illustrated and scientific journals and trade
papers had formerly been distributed through the ordinary channels of the
publishing trade. Now that the postage rates were in many cases so largely
reduced, it became cheaper in those cases to distribute a larger number by
post, and this course was naturally adopted. Increase in the number sent by
post in such circumstances simply resulted in increased financial loss.
An indication of the extent of the privilege which the newspapers enjoy as
compared with other printed matter may be obtained by comparing the
revenue which was actually obtained from the newspapers with the revenue
which would have been obtained from the same number of packets of
ordinary printed matter of similar size and weight. In 1900, in the inland
service in Germany, some 440 million packets of ordinary printed matter
were transmitted, and the postage on them amounted to 21,133,499 M. If
the 1,150 million newspapers had yielded postage in the same proportion,
they would have brought in a revenue of some 55 millions of Marks,
whereas in actual fact they yielded only some 6½ millions.[395]
The present rate rests on the two grounds of frequency of issue and weight
of copies. It is therefore in practice more difficult to apply than the former
rate based simply on the price, since the weight factor is variable and
requires exact determination in every case. Moreover, the Reichstag forbade
rounding up of the weight, which would be essential if a rate in even
pfennigs were to be ascertained. The calculation of the actual rate must be
carried to the second decimal place in pfennigs, and a rounding up of
broken pfennigs is permitted only at the final settlement for the regular
subscription period. This complexity has, of course, added largely to the
cost of administration, without a corresponding increase in revenue.
It is anticipated that with the growth of the newspaper traffic the loss to the
postal administration will tend to increase rather than to diminish. There is,
however, no disposition to restrict the privilege accorded to newspapers.
The attempt made by the administration in 1899 to secure an increased
revenue from them was, as explained, frustrated by the Reichstag. Since

1852 the Post Office has held the monopoly of the distribution of political
newspapers, and the general advantage resulting from such an effective
control of the dissemination of public intelligence no doubt explains the
continuance of so favourable and unremunerative a rate.[396]

Note on Delivery Fees for Newspapers.

House-to-house delivery of newspapers was introduced in 1828, the lowest
charge (i.e. in addition to ordinary postage) being 30 pf. quarterly.
In 1872 a uniform delivery fee was fixed for town and country. For papers
appearing weekly or less frequently the charge was 15 pf., for papers
appearing two or three times weekly 25 pf., for papers appearing four to
seven times weekly 40 pf., and for papers appearing more frequently than
seven times weekly 50 pf. quarterly. The system of charging delivery fees
has been continued, and those at present in operation are:—

For
each copy
monthly
(a) For newspapers delivered less frequently than once a week 2 pf.
(b) " " once a week 4 pf.
(c) " " twice a week 6 pf.
(d) " " thrice a week 8 pf.
(e) " " four times a week 10 pf.
(f) " " five times a week 12 pf.
(g) " " six or seven times a week 14 pf.
(h) " " eight times a week 16 pf.
(i) " " nine times a week 18 pf.
(k) " " ten times weekly 20 pf.
(l) " " eleven times weekly 22 pf.
(m) " " twelve to fourteen times weekly 24 pf.
(n) " " fifteen times weekly 26 pf.
(o) " " sixteen times weekly 28 pf.
(p) " " seventeen times weekly 30 pf.
(q) " " eighteen times weekly 32 pf.

(r) For official gazettes 2 pf.[397]

The delivery fees are collected in advance for the complete subscription
period. In 1910 the amount collected for delivery in towns was 19,604,234
M., and for delivery in the country districts 5,770,896 M.

Note on Special Supplements.

Special advertisement supplements were permitted to be sent by post
together with newspapers by the order of 30th September 1871. These
supplements in form or character must not be similar to the main
newspaper. They must not be printed at the same office, and no charge
might be made for their insertion. A special supplement must not exceed
one sheet and must not be bound. The newspapers in which they were
inserted must bear a notification to that effect in a prominent position. All
copies of the supplement must be submitted to the Post Office and the
postage paid in advance. They were then stamped at the office of posting,
and if not posted within three days the postage might be forfeited. The rate
for each supplement was 1/12 sgr.[398]
The number of such supplements was not as great as was anticipated, the
chief reason for which was that the postage was still too high and the
regulations too complicated.
In 1873 the rate was reduced to ½ pf. for each copy, with a reduction of 50
per cent. when as many as 7,200 copies were posted at the same time. The
obligation to submit all copies to the Post Office for stamping, and the
requirement to post them within three days thereof, were at the same time
removed, and the simple obligation to give previous notice of posting
substituted. The obligation to indicate on the newspapers that a special
supplement was enclosed was also withdrawn.
In 1874 the regulations were further relaxed. Special supplements were
allowed to be printed at the same office as the newspaper, and charges for
the advertisement might be made.[399] The limit of size was extended to two
sheets, at which it remains.[400]

In 1900 (20th March) the rate was changed to ¼ pf. for each 25 grammes
weight for each supplement. The number of special supplements in 1910
was 214 millions.

III

THE RATE FOR PARCELS
PARCEL POST IN ENGLAND

The London Penny Post established by William Dockwra in 1680 was in
some degree a parcel post, but throughout the country no sort of parcel post
service existed until the introduction of the regular system in 1883. The
weight limit for packets sent by Dockwra's post was at first fixed at 1
pound, but it was afterwards extended.[401] The Penny Post was employed
to such an extent for the transmission of bulky packets and parcels that
delivery was retarded, and it was found necessary to reduce the number of
such parcels. The privilege of sending parcels even of 1 pound weight was
accordingly withdrawn in 1765.[402] The letter rate charged by the ounce
was sufficiently high to restrict effectively the number of packets of large
size entrusted to the post.[403] In their Report of 1797 on the Post Office, the
Select Committee on Finance recommended a reduced rate for the heavier
packets and small parcels, in order to encourage their transmission by post,
but the suggestion met with no favour.[404] For many years afterwards the
official view was that it was desirable to confine the post to light packages,
and that any increase in the number of heavy packets would disorganize the
service, which existed to provide for the expeditious transmission of light
letters. Its arrangements had been made with this object, and to load it with
a large number of heavy packets would be subjecting it to an unfair strain,
under which it would inevitably break down.[405] So long as the delivery of
parcels is provided for by foot (or cycle) post, it is impossible to raise
indefinitely the limit of weight for individual parcels.
The establishment of the Book Post in 1847 was, of course, a step in the
direction of a general Parcel Post. The Post Office having by this means

become the carrier of small parcels containing goods of a certain class, the
demand for a post for parcels of any kind of goods was inevitable. In the
'sixties there was considerable agitation for extended parcel post facilities.
The familiar argument was advanced that the Post Office had already an
establishment for the collection and delivery of letters in some twelve
thousand districts, and that this establishment might be used, to the great
advantage of the public, to afford any additional services within its
capacity; that, as all the main establishment charges were paid—rent,
salaries, etc.—an additional service could be rendered without adding
proportionately to the expenses. It was urged also that the sample post rate
was too high and was fenced by troublesome regulations; that the book rate
was also too high; that there was no reason why the book trade should be
favoured; that in respect to the mass of the people the charges were so high
as to impose on the transmission of small articles the same sort of
prohibition that was placed on the transmission of letters under the old
postal system; that a comprehensive system could not be carried out by the
railways until the railways would co-operate; that even if the railways did
co-operate they had not means at their disposal equal to those of the Post
Office; that a parcel post system was already in operation in several
continental countries; and that, in fine, by the establishment of a similar
service in this country an immense boon would be conferred on the public.
The Post Office was, however, not favourably disposed towards the idea. It
was proposed to meet the agitation to some extent by reducing the rates of
postage on the heavier letters, and thus to carry small parcels under the
guise of letters. This proposal was not, however, carried through. In 1871
the rates for letters of medium weight were reduced, but those on letters
above 12 ounces were retained at a height which could only be regarded as
prohibitive.[406]
The public agitation in favour of a parcel post service continued; and when
in 1878 a large number of the railway companies announced that they
proposed to convey small parcels over any part of their lines at low uniform
rates, attention was called to the fact in the public Press, and suggestions
made that the Post Office should co-operate by undertaking the delivery of
the parcels. The official view was now somewhat more favourable to the
idea. An international parcel post service had been established in 1880 in
connection with the Universal Postal Union, and this fact had strengthened

public opinion in favour of a parcel post service in this country. It was
recognized that such a service would afford undoubted advantages to the
public, especially in rural districts. It would provide facilities which private
enterprise had not seen fit to undertake. It would provide a service reaching
to all parts of the country, for which there was no other equally suitable
machinery.
The Post Office could not, however, in establishing a parcel post service,
act as freely as in its arrangements for the conduct of the letter service. The
conveyance of the parcels from place to place was likely to prove a serious
undertaking, and for such conveyance the Post Office was dependent on the
railway companies. In the case of letter mails the cost for conveyance is a
very minor part of the total expenses of the service, but when negotiations
with the railway companies were begun it was soon found that such would
not be the case with parcel mails. The companies, regarding the parcel
traffic as to a large extent their own proper business,[407] were not disposed
to agree to easy terms, and there was the further difficulty that numerous
companies had to be satisfied, since it was desired to establish the system
under an agreement which should include all the principal companies.[408]
From the first, the question of the remuneration of the companies was
approached from a point of view totally different from that in which their
remuneration for the ordinary letter mails was regarded. Letter mails are
conveyed as entities, and the company have never been concerned with the
number of letters enclosed in the mail or the amount of postage paid. They
arrange for the conveyance of a given number of mails, and are
remunerated accordingly. But with parcels the question was approached as
one for the determination of just remuneration of the companies for
conveying, not mails containing parcels, but single parcels. And the
question to be settled was what proportion of the postage paid on the
individual parcels should go to the companies. In view of the heavy
expenses of every description which would be incurred and of the large
number of heavy letters which would be transferred to the parcel post,
causing a considerable reduction of revenue, the Post Office declined to
accept less than half the total receipts, and after some demur the companies
agreed. The rates of postage proposed were two in number—for parcels not
exceeding 2 pounds in weight, 6d.; for parcels not exceeding 4 pounds in
weight, 1s.

Difficulties arose subsequently as to the amount of freedom of action to be
left to the Postmaster-General and the duration of the agreement. The first
proposal was for an agreement in perpetuity, and the draft agreement gave
the companies what was called a "partnership interest" in the parcel post
business. It was, however, regarded as essential that the parcel post business
should be no less under the control of the Postmaster-General than the
existing letter post, and that, on the expiration of any agreement made with
the railway companies, the statutes relating to the conveyance of letter
mails by railway should apply to parcel mails.
After the failure of the first scheme, negotiations with the railway
companies were suspended, but the public agitation for a parcel post was
daily gathering strength, and in February 1882 the Postmaster-General
again approached the companies. The new proposals were somewhat
different from those originally made. A scale with four rates (3d. for 1
pound, rising to 1s. for 7 pounds) was now suggested by the Post Office,
largely in deference to the strong disposition of the railway companies in
favour of an increased number of rates. The low initial rate of 3d. for 1
pound was now proposed on the ground that a large proportion of the
business to be done would be between the large towns and the rural
districts. For the development of such business a low initial rate was
essential; and as such parcels would not be likely to be to any large extent
railway borne, the Post Office would obtain almost the whole of the
proceeds of the postage. It was, moreover, now taken into reckoning that a
considerable increase in the number of letters would result, since numerous
communications relative to parcels posted would pass, and the revenue
would thus benefit indirectly. The letter service would benefit, too, in other
ways: it would be relieved of heavy packages; and the existence of a parcel
post service would justify the provision of more efficient services in rural
districts. The rates proposed were in general very much higher than those at
the time existing in Germany, France, Switzerland, and Belgium, and they
were estimated to yield a profit.
In the further negotiations serious difficulty was encountered on two points
only: (1) the proportion of postage to be paid to the companies, and (2) the
length of time for which the agreement should be made. The earlier
agreement had been for an equal division between the Post Office and the
railway companies of the postage paid on all parcels. It was now decided

that payment could only be made in respect of parcels actually conveyed by
railway. The companies thereupon asked a higher proportion. They
anticipated that parcel post traffic would be largely long-distance traffic,
involving in many cases transfers on the journey; and although they
expected to retain a good deal of the short-distance traffic, they could only
achieve this by reducing their rates generally, especially the rates for small
parcels. After some higgling, they agreed under protest to accept 55 per
cent. of the postage on all such parcels as should be conveyed by railway.
They also agreed to the limitation of the duration of the bargain, and the
term was fixed at twenty-one years.

The agreement was embodied in the Post Office (Parcels) Act of 1882.[409]
The companies parties to the arrangement undertook the service of
conveying the post parcels from the vehicles of the Postmaster-General at
the despatching railway station to the vehicles of the Postmaster-General at
the station of destination—that is to say, they undertook all handling of
parcel mails on railway stations and transfer to and from trains and from
train to train where necessary—in consideration of payment of 55 per cent.
of the postage paid on all parcels conveyed by railway for the whole or part
of their journey, the Post Office being required to keep a record of the
amount of postage paid on every such parcel. The remuneration was to be
paid to the Railway Clearing Committee in London, by whom it would be
distributed between the various companies. The agreement was to continue
for twenty-one years, and thereafter until terminated by either party. The
Postmaster-General retained the power of revising the rates of postage, but
in the event of such revision the companies might claim revision of the
terms of their remuneration (even during the first twenty-one years). In any
case, on the termination of the agreement, the statutes governing the
conditions under which ordinary mails are conveyed by railway, and the
determination of the remuneration of railway companies in respect of such
conveyance, were to apply equally to the conveyance of parcel mails by
railway.
The Postmaster-General has twice exercised his right of revising the rates of
postage, and in each case the rates were lowered. The companies have not
exercised their right to ask for a revision of the terms of their remuneration,
and the provisions of the Act therefore continue in operation. In the first
complete year of the service (1884-5) the number of parcels conveyed was

some 23 millions. The increase in the traffic has been large and constant. In
1912-13 the total number of parcels exceeded 130 millions.
The service affords a great public convenience, and the simplicity of its
rates is an undoubted boon. The uniform rate has, however, proved
unsatisfactory in some respects. At all points at which the traffic would be
profitable, the Post Office is open to the competition of private enterprise;
but for that part of the traffic for which the uniform rate must inevitably be
unprofitable (unless it be fixed so high as to be exorbitant for short-distance
and average-distance traffic) there will naturally be no competition. The
number of local, or short-distance, parcels is consequently small, and the
number of parcels sent for long distances, to remote places, is
comparatively large. No great use is, however, made of the post for the
transmission of parcels of agricultural produce from rural districts. There is
a moderate traffic in butter and eggs from Ireland to England, and in cream
from the West of England. Proposals for the introduction of a specially low
rate for agricultural products have frequently been considered, but there are
obvious objections to the establishment of a special rate for a special class
of traffic. Moreover, for parcels from country districts the present uniform
rate is often ludicrously low. The cost of preparing and packing each
separate small consignment for transmission by post is, however,
considerable, and only the affluent are able to indulge in that method of
obtaining food supplies.[410] The exceptional character of the Post Office
traffic in parcels, and the small degree in which the rates of charge measure
the utility of the service of transportation which they cover, are well
illustrated by the statistics of the traffic, which indicate that the total
numbers are unaffected by fluctuations in general trade, and that the
reductions of the rates which have been made since the establishment of the
service have had no appreciable effect on the volume of traffic.[411] The
actual rates for the heavier parcels are probably more profitable than the
rates for light parcels, since the principle of degression is not much
recognized in the scale of rates. This view is confirmed by the fact that the
post is little used for heavy parcels, the average weight of a post parcel
being no more than 2·8 pounds. It is, as a matter of fact, not improbable that
the parcel post service as a whole is conducted at heavy loss.[412]

Note.—As a war measure the rates were increased on 1st
November 1915 by 1d. at each step in the scale, and are now as
follow:—

Parcels not exceeding 1 lb 4d.
Exceeding 1 lb., not exceeding 2lb. 5d.
" 2 " " 3 " 6d.
" 3 " " 5 " 7d.
" 5 " " 7 " 8d.
" 7 " " 8 " 9d.
" 8 " " 9 " 10d.
" 9 " " 10 " 11d.
" 10 " " 11 " 1s.

PARCEL POST IN THE UNITED STATES OF AMERICA

Several causes operated to prevent the early establishment in the United
States of a parcel post system. The two factors of extent of territory and
sparsity of population, which had from the first so greatly influenced the
policy of the Government towards the Post Office, were of much greater
importance in regard to a parcel post system. The weight of the individual
letter is very small, and as the cost of transportation depends in most cases
entirely on weight, the system of uniform rates which had been introduced
in England had not been found impossible of adoption in the United States.
But with parcels, cost of transportation is an appreciable item for every
parcel, and in a country of vast distances there must be an appreciable
variation in the actual cost for each parcel. Consequently, any uniform rate
which would render the service self-supporting must be measurably above
the rate which would suffice for local and short-distance traffic, and
measurably below the rate which would be necessary for long-distance
traffic. Private agencies would therefore cut such a rate and absorb all the
short-distance traffic, while the long-distance traffic would be left to the
Post Office, and would be carried at a loss. This had been found to be the

case with second-class matter, where weight is an important factor, and also
with the fourth-class matter. The establishment of a parcel post system,
therefore, would involve a reconsideration of the fundamental principles on
which the rates of postage were in general based.

The creation, in 1863, of a third class of miscellaneous mail matter[413] was
virtually the establishment of a limited parcel post. The rate, for third-class
matter, 2 cents for each 4 ounces or fraction thereof, was increased in 1879
to 1 cent an ounce. These rates were comparatively high; and as the limit of
weight was 4 pounds, the traffic naturally never assumed large proportions.
With the establishment in 1880 of an international parcel post in which the
United States participated, although having no real internal parcel post, it
was inevitable that the question of establishing a system equal in scope to
those of other countries should arise. For forty years there was a demand,
becoming more general and insistent, for the establishment of such a
general parcel post.
Active official support was first given to the proposals for a parcel post in
1890 and 1891 by Postmaster-General Wanamaker, who explained that
although the demand for such a system was widespread, the greatest
pressure came from "interior places," which were, in fact, really most in
need of it, because they had no facilities for obtaining small packages of
merchandise from the towns.[414] Opposition to any sort of parcel post came
then, as always, from the express companies, who, although not able or not
desirous of affording a service to all parts, were much concerned at the
prospect of losing traffic. Mr. Wanamaker proposed to propitiate them by
transferring to them a considerable amount of traffic deemed by him to
belong properly to the express companies, viz., traffic carried by the Post
Office for the other Executive departments free of charge, under "penalty
frank,"[415] and comprising many packages of considerable weight and
bulk. Mr. Wanamaker also desired to put a stop to the transmission, as
second-class matter, of periodicals which were really ordinary books, by
transferring such traffic to the express companies. Although in favour of a
full parcel post system, and recognizing that there was a strong desire in the
country for the boon, Mr. Wanamaker was not prepared to advocate its
immediate establishment. He thought other reforms should take precedence;
such as free-delivery extension, postal telegraph, postal telephone, and 1

cent postage on land and sea, all of which, except the extension of free
delivery, are still waiting adoption.
A number of postmasters criticized the suggestions of the Postmaster-
General in 1890 regarding parcel post, but most of them had, by 1891,
expressed themselves in favour of a full parcel post system, and according
to Mr. Wanamaker the remainder were "probably interested express agents."
The situation was in some respects unsatisfactory. It was a common practice
for business firms to contract with express companies to carry large
quantities of small packages at a rate per package just below the rate of
postage. The express companies took such of the packages as they thought
fit to handle, and left the Post Office to carry the remainder, all long-
distance traffic, and unprofitable both to the express companies and to the
Post Office. But the companies were secured by their profit in the short
distances. Naturally, therefore, they offered strenuous opposition to the
establishment of a parcel post.[416]
With the establishment of rural mail delivery there arose a new demand for
a parcel post. Persons living on the rural routes desired to take advantage of
the new service for the delivery of small parcels of merchandise of all
kinds, food-stuffs, tobacco, dry goods, etc., which they would order from
the local store-keeper by post or by telephone. The rate then payable on
such parcels was the general rate for fourth-class matter, viz. 16 cents a
pound, which for parcels of goods of small intrinsic value was prohibitive.
In response to this demand, the first definite proposals for a parcel post[417]
were put forward by the department in 1904, when the establishment of a
special rate of 3 cents a pound was suggested, with a maximum limit of
weight of 5 pounds, for parcels from any distributing office for rural routes
to any patron on the routes from that office. Such a rate "would be a great
convenience to the patrons and become a source of revenue to the
department." The rate of 3 cents was estimated to be ample remuneration in
such cases, because there would be no expense for railway transportation,
and as it would be merely employing a system already established, there
would be no additional expense for delivery: the rural carriers could easily
perform the service.[418] They had at first been allowed to carry express
packages, but the privilege had been subsequently withdrawn. They were,
however, still authorized by law to carry merchandise for hire, on behalf of

patrons of the rural routes, and to carry passengers. In general, their work
for the Post Office only employed them to the extent of 30 percent, of their
full capacity, and a large unutilized margin therefore existed.
The proposal was again advanced in following years. Postmaster-General
Meyer interested himself in the question, and advocated in speeches in
various parts of the country the immediate adoption of a parcel post system.
In 1907 he suggested the introduction of a local parcel post service
experimentally. He made at this time numerous treaties with foreign
countries for parcel post services between those countries and the United
States, at a general rate of 12 cents a pound. The result was that parcels
could be posted at any town in the United States for transmission to places
in, say, Europe or Australia, at the rate of 12 cents a pound, but could only
be posted for transmission to another town in the United States on payment
of a rate of 16 cents a pound. When this situation was realized, there was
naturally a good deal of irritation, and the existence of such an anomaly was
made an argument for a domestic service.[419]
The preferential rate obtained by parcels going abroad continued to be a
strong argument in favour of a general parcel post, and members of
Congress constantly referred to it in the discussions on the subject.
There was, moreover, and still is, an important body of opinion which goes
much further than the advocacy of a parcel post system. In that view, the
express companies are the enemy or, at any rate, the oppressive character of
the express rates is viewed so seriously that no solution of the present
difficulties of the country, and especially of the "high cost of living"
problem, is thought possible short of a complete express service run by the
general Government. Relief will only be found under some system which
will bring the producer of the necessaries of life into direct relationship with
the consumer,[420] in order that the enormous middleman's charges be
eliminated and the consumer obtain the produce at a price not greatly above
the actual cost of production. The railways refuse to handle shipments less
than 100 pounds, and their minimum charge is 25 cents. The ordinary
consumer who requires consignments of much less than 100 pounds' weight
has no use for such a service. For shipments of less weight, the only service
available is the express service, the minimum rate for which, in general 25
cents, is too great for farm products, which are usually of low value and

could not bear a rate of 25 cents. The express service, which is restricted to
the railway system, has, moreover, no means of reaching that vast body of
the people, estimated at some 40,000,000, who are living on the farms, and
who alone are able to supply the desired traffic in food-stuffs. The
Government has in recent years, at heavy expense, extended to some 20
millions of people the benefits of free mail delivery, and the intention of the
advocates of a Government express service, a "postal express," is that the
State should take over the express companies, paying them fair
compensation for their property, and work their service in conjunction with
the rural mail delivery. By this means an extensive service could be
provided at reasonable rates of charge.[421]
In February 1908 Bills were introduced in the Senate to increase the limit of
weight of fourth-class matter, and to provide a rural delivery parcel post for
merchandise and other articles mailed on rural delivery routes. Legislation
did not, however, result.
Meantime, the feeling in favour of a parcel post was spreading, more
especially in the farming districts. In November 1911 a Sub-Committee of
the Senate Committee on Post Offices and Post Roads was appointed to
examine the practicability of establishing a parcel post system. The Sub-
Committee was appointed on a resolution of the Senate, moved by Senator
Jonathan Bourne, Jr., the Chairman of the Senate Committee on Post
Offices and Post Roads, and there is indication that the adoption of the
system had already been practically decided upon, the real question before
the Sub-Committee being that of its practicability as an immediate
proposition. The Post Office representatives advocated a limited
experimental introduction of parcel post on rural routes and in the city
delivery offices. They were impressed with the radical differences between
the United States and most other countries where parcel post was in
operation, and hesitated to recommend the introduction of a general service.
But the members of the Sub-Committee had in mind to introduce as soon as
practicable a complete system by the method of enlarging the scope of the
fourth-class regulations and reducing the rates of postage. Numerous
witnesses appeared before the Sub-Committee, representing general
societies of business men, such as the National Dairy Union, the Associated
Retailers of St. Louis, Me., and the Retail Dry Goods Association of New
York; educational or social societies, such as the American Library

Association, the Postal Progress League, and the Knights of Labour;
farmers' societies, such as the State Granges and the Farmers' Educational
and Co-operative Union of America. Several farmers, lawyers, and other
gentlemen appeared to give their own personal views. The chief opposition
to the parcel-post came from the representatives of the retailers, who stand
in constant fear of losing their business to the mail-order or catalogue
houses. The business of these houses is very large, amounting in the
aggregate to nearly $200,000,000 per annum, and there is perhaps some
reason for the local merchants' apprehensions. The bulk of the mail-order
traffic is, however, distributed as freight. But the country merchants were
much alarmed, and there were doleful prophecies of the results of a parcel
post. The local merchant was represented as the mainstay of the country-
side. He it was who sustained the country town, which afforded so valuable
a local market for the farmer. He it was to whom alone that same farmer
could look for credit to tide him over bad times. He it was who made the
country town a social centre where the farmer might come into touch with
civilization and refinement. And on the continuance of the prosperity of the
country merchant depended the continuance of the army of travelling
salesmen, without whose patronage railroads would be driven to reduce the
number of trains, hotels would go out of business, and throughout the
country accommodation for travellers would be found extremely poor. In
short, parcel post would reduce the country merchant to the same condition
as the small shopkeeper in Europe; and the country towns would become
mere hamlets and deserted villages.[422]
The parcel post was, of course, as likely in 1912 to prove a blow to the
express companies as in the earlier years when they had so strongly resisted
any proposal for its introduction. In face, however, of the strong and
widespread movement in the country in its favour, they realized that they
would be unable always successfully to resist its establishment, and no open
opposition to the proposals of 1912 was encountered from them. They did
not appear before the Senate Sub-Committee.
The Sub-Committee saw no insuperable difficulty in the way of introducing
a general system at once. Moreover, they were impressed by the fact that a
parcel post system was in operation in most other countries of the world,
even in Australia, a country slightly larger in area than the United States and
much more sparsely populated, where the two factors which so radically

distinguished the United States from most other countries in which a parcel
post had been established were met with in even greater degree.
When the questions of the desirability and practicability of establishing a
system had been decided, there still remained the difficult and important
question of the scheme of rates of charge on which the system should be
based. Some of the witnesses before the Sub-Committee advocated a
uniform rate, representing that a graduated rate was undesirable and would
be unacceptable, as giving a special privilege to certain sections of the
people. A more general opinion was that a flat rate would be unsound
economically. With such a rate, the express companies would step in and
take all the profitable traffic; and it would, moreover, be necessary to fix the
rate so high as to render it prohibitive for goods of low value and for the
purpose of moving traffic on the rural routes. In a country of vast extent the
actual cost to the Government for the transportation of parcels of the same
weight would differ widely in proportion to the distance for which they
were conveyed in the mails, and the differences would be sufficiently great
to render it easily possible to graduate a scale of postage approximately in
accordance with the distance and the actual cost. The department estimated
the cost of transportation for mail matter to be 1·32 cents for each 200
miles, and taking this as a basis, differential rates in respect of
transportation were arrived at for a series of zones.
The charge for handling, i.e. for collection, delivery, administrative and all
other incidental services, was calculated as an altogether separate item. The
Sub-Committee had the evidence of Mr. John L. Newbold, a gentleman of
long experience in a transport business which dealt mainly with small
parcels for delivery within the limits of the City of Washington, and was
therefore in a high degree comparable to delivery service which would be
performed by the Post Office in respect of parcels. Mr. Newbold offered to
contract with the Government to handle all post parcels for delivery within
the City of Washington at 5 cents a parcel, with a limit of weight of 25
pounds. Estimates by similar delivery companies in New York City
indicated the cost to them of packages up to 25 pounds, which was a little
over 5 cents per package. The department's estimate of the handling cost of
fourth-class matter showed a cost of a fraction under 3 cents for the first
pound, with an approximate increase of 20 per cent. for each additional
pound.

These data furnished a basis for calculating rates of postage, when the
limitation of the zones had been determined, a matter of some little
difficulty. The first, and most obvious, suggestion was that the zones should
be reckoned as from each post office, but in view of the fact that there were
some 60,000 post offices in the United States, grave practical difficulties
would arise with a scheme providing for special rates from each post office.
It was then thought the State might be adopted as the unit of area, but the
States differ so widely in area that such a system would have resulted
inequitably, giving equal postage charges for very unequal services. A
citizen in Texas or New York State, for example, would be able to send his
parcel many times as far as a citizen of Massachusetts or Delaware. The
same objection applied, though not in so great degree, to the county as a
unit of area. Moreover, these units would be liable to arbitrary change.
Failing the discovery of any satisfactory unit based on the political
divisions, recourse was had to purely theoretical divisions, based on the
imaginary lines of latitude and longitude. The actual degree parallels were
rejected as the limits of the units of area because, within the quadrangle
formed by them, there would be a maximum zone distance of some 80
miles; while at the same time, for transmission between two places perhaps
only two miles apart but lying on different sides of the line, postage would
be chargeable as for the second zone. This difficulty was overcome by an
ingenious suggestion, which emanated from the department, to divide the
degree quadrangles in four, that is, into squares of 30 minutes dimension,
and to allow the sending of parcels at the first zone rate from or to places in
every contiguous quadrangle.
Under this method, which was adopted, the United States is divided into
3,500 units of area, which are definite, never-changing, and practically
uniform in size, the slight difference in area depending on the distance from
the Equator being negligible. Each unit is given an index number, and all
post offices in the unit have the same index number. Each unit has its own
zone limits, which apply equally to every office in the unit. So that in order
to discover for what zone postage is to be charged between two places, it is
only necessary to ascertain what are the zone limits for the units of area in
which the places are respectively situated. A simple reference to a guide
showing in what unit of area the post office of destination falls, and a
consultation of the zone map of the office at which the packet is posted, that

is, a map showing the boundaries of each zone measured from the unit of
area in which the office is situated as centre, gives in a very short space of
time the rate applicable to the parcel.
A simplification of rates and regulations is always attended by a diminution
of the difficulties of administration, by economy of actual working, and by
convenience to the public. In connection with the proposed parcel post the
department, with these objects in view, suggested the abolition of the
separate class for printed matter, and its amalgamation with the parcel post
matter, thus reducing the number of classes of mail matter to three. The
Chairman of the Senate Sub-Committee adopted this suggestion, and
embodied it in the Bill which he prepared and introduced in the Senate on
the 16th May 1912, retaining, however, a rate of 1 cent per ounce up to 4
ounces, in order to provide for circular matter which, under the third-class
rate, passed at 1 cent for 2 ounces. This was apparently a doubling of the
rate, but as the average weight of circulars is under 1 ounce, in actual
practice the great bulk of them would continue to pass at 1 cent. This
provision would, however, raise the rate on all catalogues and circulars
weighing more than 1 ounce; and although 90 per cent. of the number of
pieces of third-class matter actually posted are under 4 ounces in weight
and would have fallen under the proposed special rate, and 50 per cent. are
under 1 ounce in weight and would have passed for the same amount as
under the existing third-class rate, viz. 1 cent, this provision of the Bill was
strenuously opposed by printers and catalogue houses. Not regarding the
consolidation of the two classes as in any way essential to the establishment
of a parcel post system, the Senate Committee on Post Offices and Post
Roads, when they came to consider the Bill, decided to eliminate that
feature.
In general this Bill represented the conclusions of the Sub-Committee, and,
apart from the foregoing change, was substantially accepted by the Senate
Committee. The only other amendments made were an increase of the
number of zones from six to eight, with the view of "protecting the local
merchant in the field of his business," and a slight raising of the rates for the
shorter distances, partly from a fear that the rates proposed in the Bill would
not be self-sustaining, and partly from a desire further to protect the local
retail merchant against the catalogue houses.

The essential provisions of the Bill, as thus amended, were embodied in the
Post Office Appropriation Bill for the fiscal year 1913, were accepted by
Congress, and became law on the 24th August 1912. The actual zones and
rates fixed were as follows:—

First zone: All territory within quadrangle or unit of area and every
contiguous quadrangle.
Second zone: All units of area outside the first zone within a radius of,
approximately, 150 miles from the centre of a given unit of area.
Third zone: The same within a radius of, approximately, 300 miles.
Fourth zone: The same within a radius of, approximately, 600 miles.
Fifth zone: The same within a radius of, approximately, 1,000 miles.
Sixth zone: The same within a radius of, approximately, 1,400 miles.
Seventh zone: The same within a radius of, approximately, 1,800
miles.
Eighth zone: All units of area outside the seventh zone.

The rates were:—

On rural route: 5 cents for the first pound or fraction of a pound,
and 1 cent for each additional pound or fraction of a pound.

Each
First Pound. additional
Pound.
First zone 5 cents. 3 cents.
Second zone 6 " 4 "
Third zone 7 " 5 "
Fourth zone 8 " 6 "
Fifth zone 9 " 7 "
Sixth zone 10 " 9 "
Seventh zone 11 " 10 "
Eighth zone 12 " 12 "

Although, of course, with the body of the people the main arguments had
been the ordinary contentions of the advantage of such a system as
providing a most convenient facility for persons in all parts of the States,
and especially in the rural districts, whereby they would be able by the
utilization of existing machinery to have articles of all descriptions brought
to their doors, yet in Congress the argument was largely based on the
possibility of finding in the parcel post a means of reducing the "high cost
of living," a problem which is giving much anxiety to politicians in
America. By means of the parcel post, producer and consumer are to be
brought into direct relations the one with the other. All middlemen and their
profits will be eliminated, and either the producer will get more for his
products or the consumer will pay less—which of these will happen does
not appear: probably in some degree both are hoped for.
The experience of England may not be any indication of what will happen
in America. But it is certain that in England the produce sent direct from
farm to consumer, whether eggs, butter, or poultry, is not obtained by the
consumer at less cost than he could buy it in his own town. There is an
advantage, but it rests solely in quality. The products obtained from the
farm are more fresh, are probably better altogether, but the price is not less.
In England these considerations have been sufficient to prevent the

wholesale use of the parcel post for food-stuffs. It is, in fact, in general used
for such traffic only by those people to whom a little extra expense is not an
object of consideration. The conditions in America seem, however, to be
substantially different from those in this country, and a large development
of parcel post business of this character is anticipated.[423]
On the 15th August 1913 the limit of weight was increased to 20 pounds in
the local, first, and second zones; and on 1st January 1914 the limit in local,
first, and second zones was further increased to 50 pounds, and in the
remainder of the zones to 20 pounds. On the 16th March 1914 books and
printed matter were admitted to the fourth class, or parcel post, with a rate
of postage of 1 cent for each 2 ounces up to 8 ounces, the ordinary parcel
post pound rates to apply to packets exceeding 8 ounces in weight.
The service, as a whole, has been enormously successful. It is estimated that
in the second year the post office was handling parcels at the rate of
800,000,000 annually, a figure which may be compared to its advantage
with that for the United Kingdom. In the United Kingdom the annual
number of parcels posted is some 130,000,000, say three per head of the
total population as compared with eight per head in the new service in the
United States.

PARCEL POST IN FRANCE

The conveyance of parcels of merchandise, which had been undertaken by
the early posts in France, was abandoned to private enterprise in 1795.[424]
When, therefore, proposals were made for the establishment of an
international parcel post service, France was without an internal service of
the kind. She became, nevertheless, a party to the Convention of 1880,
which established an international service,[425] availing herself of the
privilege reserved to those countries without an inland parcel post service,
of arranging for their obligations under the terms of the Convention to be
assumed by railway and steamship companies. A contract was concluded
with the administration of the State railways, the six great railway
companies, and the shipping companies in receipt of subsidies for the

conveyance of mails, under which those bodies undertook to conduct a
service on behalf of the postal administration in accordance with the
provisions of the Convention. They were to receive in its entirety the
prescribed territorial transit rate of 50 centimes on every parcel, but not the
surtax of 25 centimes.[426] The payment of 50 centimes per parcel was to be
divided by the companies among themselves if the parcel was conveyed by
more than one party, and constituted the full remuneration for the entire
service performed, including the customs formalities. The contracting
companies were required to print at their own cost a list of places served,
and to keep the list available for reference by members of the public.
The establishment of an international service of this kind necessitated the
provision of facilities for the transmission of ordinary inland parcels within
France.[427] The companies were accordingly required to undertake also the
transportation of inland parcels upon their railways and the delivery of
inland parcels in localities adjoining their lines under the same conditions
and for the same remuneration as in the case of parcels in the international
service. A difficulty existed in the fact that small parcel traffic (l'envois par
messagerie) was subject to special taxation.[428] These taxes frequently
exceeded the charge for transmission, and in some cases the value of the
parcel itself. In order to encourage the use of the service, these taxes were
reduced or modified by a series of laws at a sacrifice of revenue exceeding
two and a half million francs a year. The service, which was established on
the 1st May 1881, did not include the whole of France, but extended only to
localities served by the State railways, the six contracting companies, and
certain subsidiary companies which contracted for the business with the
larger companies. The maximum limit of weight was fixed at 3
kilogrammes, and the rates of postage were 60 centimes for parcels
transported from railway station to railway station, and 85 centimes for
parcels delivered at the residence of the addressee. The service became
immediately popular, the number of parcels posted during 1881 being at the
rate of over half a million a month.
Soon after its establishment the service was extended to the smaller
subsidiary lines, and to districts not served by railway. The latter extension,
which it was not found easy to arrange, was provided for by introducing
into the contracts for the conveyance of the ordinary mails in those districts

a clause empowering the administration to require the contractor to convey
post parcels for a remuneration of 15 centimes per parcel—the amount to be
increased to 25 centimes for parcels delivered at residence.
The Lisbon Congress (1885) raised the limit of weight in the international
service from 3 kilogrammes to 5 kilogrammes, but a corresponding increase
was not made in the internal French service until 1892. The maximum limit
of weight was raised to 10 kilogrammes in 1897, and the following rates of
postage are now in operation:—

Delivered at
Delivered at
Weight. Residence or
Railway Station.
Poste Restante.
fr. fr.
Not exceeding 3 kg. 0·60 0·85
3-5kg. 0·80 1·05
5-10 kg. 1·25 1·50 [429]

Cumbersome parcels are charged rates 50 per cent. greater than the ordinary
rates.[430] Parcels redirected or returned to sender are subject to an
additional rate of postage, and to a tax (droit de timbre) of 10 centimes.[431]
Parcels for despatch are accepted only at the railway stations or offices of
the companies or by their agents. They are delivered at the stations of the
companies or at their offices in towns or at the offices of their agents, to be
called for, or they are delivered at residence; but the latter service is
undertaken only when a delivery service organized by the companies, or
their agents, for their own purposes already exists.
Parcels are accepted for localities not served directly by the contracting
companies, but such parcels are conveyed only to the point served by
railway nearest to the place of destination. It is left to the public to provide
for their further transmission. In the case of parcels delivered only at the
railway station, an advice of delivery is sent to the addressee by the
company or their agents within twenty-four hours of the receipt of the
parcel. This advice is sent by post, and the postage, 5 centimes, is recovered
from the addressee. If parcels are not called for within eight days, the
sender is asked to give instructions regarding their disposal.

The control of the service in districts served by railway rests entirely in the
hands of the railway companies. The postal administration takes no part
directly in its management, but co-operates with the companies by affording
certain small facilities in regard to parcels. For example, on payment of the
usual delivery fee of 25 centimes a parcel may be delivered from the
railway station to the local post office, where it will be retained in the poste
restante. In districts not reached by the railway or their agents, the
management of the service falls on the postal administration. The service in
such districts is, however, far from complete. There are in France some
36,000 communes, but the parcel post service extends only to some 12,000
railway stations, and only at about one-half of these can parcels be
delivered at the residence of the addressee.[432] To a limited extent a service
is given in certain localities not directly served by railway. In these cases,
which are arranged only with the concurrence of the companies, the service
is conducted by the ordinary road carriers.[433] The extension of the service
in the rural districts is one of the problems which face the postal
administration.[434]
A local parcel post service was established in Paris in 1881 by arrangement
with the Compagnie des Messageries Nationales, but it did not prove
profitable, and was discontinued in 1887. A new service was set up in 1890.
The contractor is required to make two deliveries on week-days and one on
Sundays and feast days (les jours fériés), and to maintain an office in each
arrondissement. The system has, however, developed. Three daily deliveries
are now given, and nearly 500 offices have been opened. The rate of
postage is 25 centimes for parcels not exceeding 5 kilogrammes, and 40
centimes for parcels between 5 and 10 kilogrammes.
The total number of inland parcels posted during the year 1913-14 was
about 52 millions.

PARCEL POST IN GERMANY

In the days of the horse-posts it was obviously undesirable to burden the
mails with weighty packages, and the transmission of parcels by post was

from the first discouraged in Germany, although not forbidden. Parcels
were charged as letters by the half-ounce, a sufficiently high rate to prevent
the use of the posts for their transmission to any inconvenient degree. The
first Imperial posts did not, indeed, undertake the transmission of parcels.
The business was left to private enterprise, and was conducted by the
Boten-Anstalten. The posts themselves were, however, made use of for the
transmission of parcels of merchandise for private individuals at least as far
back as the Thirty Years' War. Owing to the dislocation of industry and
commerce during that war and the high rates of postage charged, the
number of parcels was extremely small, and their transmission was
confined to limited areas.[435]
As early as 1635 the messengers were allowed to carry parcels so long as
their travelling was not thereby impeded,[436] and in 1652 a regular parcel
service was in operation between Basel and Zurich, Schaffhausen, Lindau,
and Ulm. In 1660 the Great Elector ordered that no parcels should
thenceforward be carried by the posts free of postage. This may perhaps be
taken as the origin of a recognized parcel post service in Prussia.[437]
The rates charged were at first based on the numerous diverse
circumstances which governed the early letter rates. They were increased in
the event of any rise in the price of provender, and varied according to the
mode of transmission and according as the parcels were sent by day or
night, in fine weather or in bad weather.[438] In some cases the rate was
varied according to the nature of the contents of the parcels.
In 1699 a tariff, under which the rates were regulated according to the
distance and without reference to the mode of transmission, was established
between certain offices in Prussia, and in 1712 this tariff was extended
generally. The rate from Magdeburg to Stendal was 3 groschen per pound,
to Leipzig 5 groschen per pound, and to Berlin 7 groschen per pound. In
1713 the summer and winter rates were abolished in Prussia. The rate for
ordinary parcels from Berlin to Hamburg was 1 groschen per pound, from
Berlin to Magdeburg 7 pf. per pound, from Berlin to Frankfort 4 pf. per
pound, from Berlin to Leipzig 1 groschen per pound, etc. For provisions the
rates were reduced by one-half, and for fancy goods the rates were doubled,
a method of charge which gave rise to many practical difficulties.

In Saxony, by an ordinance of the 27th July 1713, parcels were divided into
four classes, as follows:—
1. Packets of Documents (Akten-Pakete). The letter rate was
applied to these in the following manner:—

1-4 pound parcels were charged as2½ounces
4-6 " 3 "
6-8 " 5 "

2. Money and fancy goods—

For the value of
1-3 miles 100thaler current 2groschen
4-6 " 100 " 3 "
7-9 " 100 " 4 "

and so on up to 30 miles. (Note.—Distances are given in
German miles throughout.)
3. Commercial goods—

Miles.
Weight.
1-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-27 28-30
Pounds. Gr. Gr. Gr. Gr. Gr. Gr. Gr. Gr. Gr. Gr.
1 1 2 3 4 5 5 6 6 7 8
2 2 3 4 5 6 7 8 8 10 11
3 2 3 5 6 8 9 10 12 14 15
10 5 7 9 13 17 23 24 32 38 44
100 14 24 34 50 58 70 79 90 110 124

The weight was calculated for each pound up to 10 pounds, then
for 15 pounds and 20. For parcels weighing more than 20
pounds the rate increased for each 10 pounds.
4. Valuable goods, e.g. gold, silver, cloth of gold, brocade, were
charged double the rate for commercial goods.

In 1741 a parcel rate was established in Brunswick and Lüneburg, based
simply on weight and distance, without reference to the nature of the
contents.[439]
The Prussian rates of 1712 continued in force until 1762, when a general
revision of postal rates was necessitated by the financial difficulties
resulting from the outbreak of the Seven Years' War. The rates for ordinary
commercial transport in Prussia rose to such a degree that the post, still
working on rates fixed in 1712, became the cheapest means of transport.
Consequently the parcel post traffic increased, but it was found that the
expenses of the service were not covered by the revenue derived from the
parcels. The rates were accordingly increased on the simple plan of raising
them all by 100 per cent. (except in Ostfriesland, where the increase was 50
per cent.). A further revision of the rates was made in 1766. Apart from the
fact that the rates were further increased, this revision was in many respects
beneficial, since it introduced a uniform and definite rate for the whole
country.[440] In 1770 the rates of 1712 were restored.
Up to this time the rates had been based partly on the actual length of the
post routes, partly on the time occupied by the post-messengers in
traversing the routes. They therefore varied according as the roads were
good or bad.[441] In 1801 a mathematical measurement of the roads of
Prussia was made, and thereafter the time factor was eliminated and the
rates based on distance only. The distance was measured, not in a direct
line, but by way of the post routes.
The events of the Napoleonic period resulted in a great increase of prices in
Prussia, and in order to meet the additional expense of conducting the posts,
the rates were increased by 50 per cent. between 1805 and 1811, but the
general basis of charge remained unchanged. In 1824 important
modifications were introduced. The discrimination according to the nature
of contents of parcels was abolished, and the rates were based solely on
considerations of weight and distance of transmission. Further, the distance
between post offices was no longer to be reckoned according to the distance
by way of the post routes, but according to the direct distance.[442] The
general parcel rate was fixed at 3 pf. per pound for each 5 miles, with a
minimum charge of twice letter rate for parcels not exceeding 4 pounds in

weight, and three times letter rate for parcels weighing more than 4 pounds.
In the case of several parcels directed to the same place, the postage was
reckoned according to the total weight. The Postmaster-General was
authorized to increase the rates in the event of a rise in the cost of forage.
[443]

A special rate, in addition to ordinary postage, was also introduced in
respect of parcels directed to or sent from offices for which no normal rate
had been fixed. In 1826 a reduction of postage by 10 per cent. was
authorized where the total yearly weight of parcels was between 10,000 and
20,000 pounds, and of 15 per cent. where the total yearly weight exceeded
20,000 pounds. This reduction was, however, abolished in 1848.
With the introduction of railways and the transformation of the
transportation industry which ensued, the rates of 1824 were found to be too
high. In 1842 they were accordingly reduced by one-half, experimentally,
but only in respect of parcels sent on certain railway routes. In 1847 this
reduction was extended to all railway routes,[444] and in 1848 the rate for
parcels not conveyed exclusively on railway routes was reduced to 2 pf. per
pound for each 5 miles. The distinction was, however, found inconvenient
and was removed in 1852.[445] A general rate of 1½ pf. per pound for every
5 miles was then established, with a minimum postage of twice letter rate,
and a provision that odd ounces, which had previously been ignored, should
be charged as a full pound, and that when several parcels were directed to
the same address the postage must be reckoned for each parcel singly.
Under the German-Austrian Postal Union, established in 1850, it was at
first arranged that separate parcel rates should be charged by each
administration to and from the frontier, according to its own inland rates.
Later the rate was fixed at 2 pf. per pound for each 5 miles, to be charged
by each administration concerned in the transmission. In 1857 one definite
parcel rate was established for the whole territory of the Union, graduated
according to direct distance, viz. 2 pf. per pound for each 4 miles, with
minima of from 1½ to 7 sgr. The whole revenue from parcels was credited
to a common fund and divided according to certain percentages.
A new parcel rate, based on weight and distance only, was established at the
founding of the North German Union in 1867. The method of calculating

the distance of transmission for the purpose of determining the postage
charge was also modified. The then existing arrangement in Prussia, based
on the regulations of 1824, provided that the rate should in all cases be
reckoned according to the actual distance between the post offices
concerned. Under this method, when a new post office was established, a
parcel rate for every other post office must be calculated, causing much
labour and wasting much time. This method was now abandoned. The
whole territory of the North German Union was divided into imaginary
squares, with sides 2 miles in length, the points of intersection of the
diagonals being taken as the centres from which all distances were
calculated.[446] The rates between any offices in two different squares were
made identical. Such a method rendered unnecessary the calculation of a
special rate of postage for every post office, and also rendered unnecessary
any fresh calculations of rates in respect of any new post offices. The
progression of distances was by stages of 5 miles up to 30 miles, of 10
miles from 30 to 100 miles, and of 20 miles thereafter, the increase in the
length of the steps being justified on the ground that the cost of
transportation does not increase in direct proportion to the distance.[447] The
rate was 2 pf. per pound for each step in the scale of distances.
The rate of 1867 was applied to the Imperial Post Office by the law of 28th
October 1871. This tariff, with its comparatively small progressions of
distances, was found inconvenient, especially with the large growth of the
traffic. The rates had, moreover, been found too high for small parcels sent
over long distances. In point of fact, by far the greater part of parcels under
the weight of 5 kilogrammes were less than 2½ kilogrammes in weight.
New parcel rates were accordingly introduced on the 1st January 1874.[448]
For all parcels not exceeding 5 kilogrammes in weight, uniform rates were
established, on the ground that an increase of postage according to the
distance of transmission was unjustifiable in the case of light parcels.[449]
For the first 10 miles the rate was 25 pf., and for all other distances 50 pf. A
zone tariff based on six zones of distance was established for parcels of
greater weight than 5 kilogrammes. For the first 5 kilogrammes such
parcels were charged the uniform rate applicable to parcels not exceeding 5
kilogrammes in weight, and the following table shows the charges for the
weight exceeding 5 kilogrammes:—

For each kg. after
Distance.
the first 5 kg.
Zone I Not exceeding 10 miles ½ sgr. (5 pf.)
" II From 10-20 miles 1 "
" III " 20-50 " 2 "
" IV " 50-100 " 3 "
" V " 100-150 " 4 "
" VI Over 150 " 5 "

For cumbrous and unwieldy parcels an additional charge not exceeding 50
per cent. of the ordinary postage might be made. With the increase of traffic
it was found impossible to forward all the parcels by the postal trains, and
the Post Office was only permitted to send a limited quantity of parcels by
the ordinary express trains.[450] In 1880 it was arranged that parcels which
must be delivered without delay—e.g. those containing fish or flowers—
should be forwarded by express train on payment of a special fee of 1 Mark
each. In 1886 this additional fee was made applicable to all urgent parcels,
whatever the contents.
The tariff of 1873 has proved too high both for heavy and for very light
parcels, and some curious anomalies result from the combination of zone
rates and uniform rates. A parcel of 5 kilogrammes sent for any distance
greater than 10 miles costs 50 pf. Eight parcels of 5 kilogrammes each
could, therefore, for 4 Marks be sent for any distance; but if made up into
one parcel of 40 kilogrammes the postage would be 7 Marks 50 for places
in the third zone (20 to 50 miles), and for places in the sixth zone (over 150
miles) no less than 18 Marks.[451] It is therefore to the advantage of the
public to divide a heavy parcel, though such a proceeding obviously
increases the cost to the administration of its handling and transmission.
The despatch of heavy parcels by post is naturally discouraged, and the
proportion of such parcels is decreasing.[452] Of the total number of parcels
sent by post in 1900, more than 88 per cent. were less than 5 kilogrammes
in weight, and the number of greater weight than 10 kilogrammes formed
less than 3 per cent. The average amount of postage per parcel on parcels
falling in Zones III, IV, V, and VI is not appreciably greater than that on

parcels falling in Zone II.[453] The number of heavy parcels in the higher
zones is, therefore, negligible,[454] and is least in the highest zones.[455]
In the case of very light parcels also the rate is excessive. The number of
parcels under 1 kilogramme in weight, which in 1870 formed about 30 per
cent. of the total, fell in 1874 to 26.6 per cent., in 1878 to 21.8 per cent., and
in 1910 to 12.616 per cent.[456] Similarly the rates for the longer distances
are too high generally, and the number of parcels falling under the higher
zone rates is extremely small. In 1887, 42.5 per cent. of the total number of
parcels were delivered within the first zone, and 84 per cent. within the first
three zones, those in the sixth zone forming only .064 per cent.[457]
Notwithstanding these defects in the scheme of rates, the total number of
parcels has largely increased,[458] and the cheapness of many of the rates
has led to the development of a traffic in certain food-stuffs, and has
encouraged numerous localized industries.[459]
In view of the small number of heavy parcels it has been suggested that the
post should be restricted to parcels not exceeding 10 kilogrammes in
weight, parcels of greater weight being left to the railways.[460] This would
result in the exclusion of about 3 per cent. only of the parcels. The proposal
is, however, objected to on the ground that the postal service for such
parcels ought not to be withdrawn unless the railways can afford as
punctual, speedy, and cheap a service as the Post Office;[461] an argument
which is sound only if the present rate is profitable to the Post Office
(which is doubtful), or otherwise so long as it is assumed that the Post
Office ought to continue the present service for the public advantage,
regardless of considerations of cost and revenue.
To meet the difficulty with light parcels a lower rate has been proposed for
parcels under 1 kilogramme in weight, but a further modification in favour
of parcels between 1 kilogramme and 5 kilogrammes in weight is
deprecated as involving an undesirable complication of the uniform rates.
[462]
The parcel post business is conducted as part of the general Post Office
business, and consequently it is not possible to eliminate from the general
expenses of the whole service the expenses incurred in dealing with parcels.
It cannot be said, therefore, whether either the light parcels or the heavy
parcels, the short-distance parcels or the long-distance parcels, are or are

not profitable to the administration, or, indeed, whether the parcel post
service as a whole is a remunerative service or otherwise; but German
writers on the subject hold the opinion that the cost of the service exceeds
the revenue derived from it.[463]

IV

MINOR RATES
(I) BOOK POST

United Kingdom

In 1847 Sir Rowland Hill proposed the provision of special facilities for the
transmission by post in the United Kingdom of books and other printed
matter. He thought such a concession expedient as a matter of policy,
especially in view of the "state of the public mind on the important subject
of education." A low rate of postage would facilitate the transmission of
scientific and literary reports and other documents "tending to the extension
and diffusion of knowledge," and would be highly prized by the Literary
and Scientific Societies, which were a feature of those days. Private
families, especially the rural clergy, would also in that way be enabled to
obtain valuable publications otherwise, to them, unattainable. Sir Rowland
Hill recognized that there were objections to the granting of a special rate
for a special class of matter; but he argued that, in effect, the proposal was
nothing more than an extended application of an existing principle, applied
to newspapers and Parliamentary Proceedings, and (in regard to certain
places abroad) ordinary periodical publications.[464]
The rate proposed was 6d. per pound, which was virtually the rate charged
on newspapers, with this difference to its advantage, that, whereas 6d. paid
on newspapers would represent six packets to be dealt with separately, 6d.
paid under the proposed book post rates would be in respect of one packet
only. The high minimum charge of 6d. was proposed as a security against
fraud: with such a minimum there would be no temptation to send a packet
as a cover for a written communication. As a measure of economy it was
proposed to send the packets by the day mails as far as possible, by this

means avoiding loading heavily the important night mail trains and adding
to their cost; and it was anticipated that the rates proposed would yield
some profit to the revenue.
Objection was raised on the ground that the post ought to be confined to
small packets as far as possible, and should convey large letters and packets
only when necessity was urgent: heavy packets would impede the work of
the Post Office, and would cause inconvenience in many ways, especially
as regards foot-messengers;[465] but, as it was not thought likely that any
very great number of book packets would be posted, the objection was not
upheld, and the cheaper rate was introduced. At first various restrictions
were imposed, and considerable public dissatisfaction resulted, especially in
regard to certain of the regulations. These regulations were consequently
relaxed in 1853 so as to allow practically any printed matter to pass at the
book rate. In 1855 the rate was reduced,[466] and in 1856 circulars were
admitted at the privileged rate. As a result of this the number of book
packets increased rapidly. In 1855 the total number was 3,000,000; in 1856
the number increased to 6,000,000; and in 1862 reached 14,000,000. In
1866 the rates for heavier packets were further reduced. The rate for packets
over 8 ounces in weight became 1d. for each 4 ounces, instead of 2d. for
each 8 ounces.
In 1870, when the ½d. rate for newspapers and for postcards was
established,[467] an important change in the book post was made. As the
result of pressure from the public and a vote in the House of Commons in
favour of a reduction, carried against the wishes and recommendation of the
Government,[468] the rate on book packets was reduced to ½d. for every 2
ounces.
Since 1870 the regulations governing admission to the book post have been
modified from time to time, chiefly in the direction of enabling the formal
documents of commerce to pass at the reduced rate. All documents admitted
to the privilege must conform to certain requirements, and it is obvious that
all such documents must be open to inspection by the Post Office. It is
therefore an indispensable requirement that the documents be sent in open
covers. Thus arises that curious distinction between the "closed" post and
the "open" post, a lower rate of postage being given to packets containing

articles or documents of a certain description, on condition that the contents
are open to inspection by the postal authorities.
In 1897 the ordinary letter rate was made 1d. for the first 4 ounces, and ½d.
for each additional 2 ounces. The book post, therefore, disappeared, except
as regards packets not exceeding 2 ounces in weight; and in 1904 its name
was changed to the "Halfpenny Packet Post." It is available for practically
all the formal documents of commerce, and, in addition, many other packets
of miscellaneous character, and remains a most important branch of Post
Office traffic.[469] In 1913-14 the number of halfpenny packets (excluding
postcards) was no less than 1,172 millions, or about one-fifth of the total
number of packets passing by post in the United Kingdom.
When on the 1st November 1915 the postage on letters over 1 ounce in
weight was increased, the book post was re-established as it had existed
prior to 1897, except for unimportant modifications of the regulations. It
had been proposed to abolish altogether the ½d. rate of postage,[470] but in
view of strong representations from the printing trade, and of the hostility of
the general public, this proposal was abandoned.

France

Particulars of the earlier rates of postage charged on printed matter in
France cannot now be ascertained, but they appear always to have been
lower than the rates for letters. Before the Revolution an octavo book could
be sent for any distance for 12 sous, and the postage on circulars was less
than a centime.[471]
By the decrees of 17-22 August 1791, a rate for daily newspapers of 8
deniers the sheet was established, and a rate of 12 deniers the sheet for other
newspapers and for periodical publications. During the succeeding years the
rates were modified a number of times. In 1796 the following rates were
established:—

4 centimes the sheet for newspapers;

5 centimes the sheet for unbound books, catalogues, and prospectuses.
[472]

A distinction was always made between ordinary printed matter and
periodical publications.
In 1827 the size of the sheet which was the basis of the charge was fixed at
25 square decimetres. The system of charge by weight was applied to
printed matter in 1856, with the following rates:—

1 centime for each 5 grammes up to 50 grammes
10 centimes from 50 to 100 grammes
1 centime for each 10 grammes beyond 100 grammes.

These rates were increased by some 50 per cent. in 1871. After the
establishment of the Universal Postal Union the rates in the internal service
were in some cases higher than those in the international service, and it
became advantageous to commercial men to post their packets abroad. The
French administration were then required under the international
convention to distribute them in France without receiving any postage.[473]
This anomalous situation was put an end to in 1878, when the following
rates were established:—
When sent under band—

1 centime for each 5 grammes up to 20 grammes
5 centimes from 20 grammes to 50 grammes;
5 " for each 50 grammes or fraction of 50 grammes thereafter.

When sent in open envelopes—

5 centimes for each 50 grammes or fraction of 50 grammes.
The rates have since been reduced, and are now as follow:—

2 centimes for packets not exceeding 15 grammes in weight
3 " between 15 grammes and 50 grammes
5 " " 50 grammes and 100 grammes

5 " for each 100 grammes or fraction of 100 grammes
thereafter.

The number of packets of printed matter has increased rapidly, as the
subjoined table shows:—

Number of Packets
of Ordinary
Printed Matter
1877 195,148,116
1883 315,315,725
1889 406,252,198

The administration are given power to delay the despatch or transmission of
packets of ordinary printed matter should circumstances render that course
desirable.
In 1827 a special rate of 5 centimes for those delivered locally, and 10
centimes for others, was conceded to certain formal printed documents,
such as notifications of births, marriages, or deaths. In 1856, to these were
added prospectuses, catalogues, prices current, and cartes de visite. These
documents must be sent under band or in open envelopes. The special rates
on these classes of packets have been continued. Under an order of the 26th
November 1909 the rate for cartes de visite was made 2 centimes when sent
under band, but formulas of courtesy must not appear on the cards. Cartes
de visite sent in open envelopes are still charged 5 centimes.

Germany

In Prussia the order of 1712 did not provide a special rate for ordinary
printed matter sent by letter post. A reduced rate of two-thirds that for
ordinary merchandise was, however, provided for books and other similar
matter,[474] under the name of Schriften- und Aktentaxe, when sent by parcel
post.[475]

In 1821 special rates were prescribed for various classes of printed matter
sent under band (Versendung unter Kreuzband), viz. books, music,
catalogues, prospectuses, prices-current, printed circulars, as follow—

For each ordinary sheet of printed matter or for eight sheets small
8 pf.
octavo size
For a half sheet 5 pf.
" quarter sheet 4 pf.
" sheet of music 10 pf.
pf.
" half sheet of music 5 [476]

The sheets were to be sent under band, and the name of the sender and the
number of sheets were to be written on the outside. The sending of written
matter in such packets was forbidden, under penalty of a fine of ten times
letter postage on a packet of the same size. In 1824 the rate for matter sent
under band (printed lottery winning lists, etc., were now included) was
made a quarter letter rate, and, like other rates, was made chargeable
according to direct distance of transmission. When, in 1850,[477] the rates
for letters were revised and reduced, the rate for matter sent under band was
continued at a quarter letter rate, and became (for 1 loth Zollgewicht = 1⅛
loth Prussian)—

Up to10German miles ¼ sgr.
10 to 20 " ½ sgr.
Over 20 " ¾ sgr.

With the exception of the name and address of the addressee no writing was
permitted on these packets, but by the order of the 29th May 1848 the
writing of the name and address of the sender and the date was permitted.
With the increase in the number of packets sent under band at the reduced
rate, there grew up an increasing abuse of the privilege by the enclosure in
such packets of written communications. In order to check this, it was
provided in 1843 that when any large number of such packets were posted
by the same person, a few of the packets should be examined in the
presence of the sender. No penalty was at first imposed; but in 1850 it

became necessary to take action, and the royal order of the 12th June 1804,
prescribing a penalty of 10 thalers in cases where a letter was enclosed in a
packet passing at a rate less than letter rate, was made applicable to the case
of packets sent under band; and the regulation of the 15th December 1821,
prescribing a surcharge of ten times letter rate for a packet of like weight,
was made applicable to cases where a communication was written on the
printed sheet sent at the reduced rate.[478]
In 1850, when the German-Austrian Postal Union was founded, a uniform
rate of 4 silverpfennigs for each loth was introduced for packets sent under
band. Following the establishment of the Union, the Prussian administration
(§ 50 of law of 5th June 1852) fixed a uniform rate for its own service of 6
silverpfennigs for each loth. For local packets sent under band (Stadtpost-
Kreuzbandsendungen) a rate of 1 sgr. for each packet was introduced,
reduced to 4½ pf. for each packet when as many as 100 packets were posted
at the same time, or 6 pf. each when from 25 to 100 were posted at one
time. The definition of printed matter entitled to the privilege[479] was now
enlarged.[480] The penalty for misuse of the privilege was made a surcharge
of four times the amount of the postage, but not less than 5 thalers, which
might be increased fourfold on repetition of the offence. In 1854 the
maximum charge for packets sent under band was fixed at six times letter
rate, in order to get rid of the anomaly of a higher charge on heavy packets
sent under band than on letters.[481] The fact that packets under band could
be sent for 4 pf. throughout the territory of the Union, but that for
transmission within the Prussian territory the charge was 6 pf., and that in
consequence Prussian commercial men were posting their packets abroad in
large numbers, led to a reduction of the rate in 1856 to 4 pf. for each loth.
[482]

The large increase of traffic which resulted made desirable a simplification
of the definition of packets entitled to the privilege. Only communications
of general application could pass, and the officials found themselves often
in doubt as to the application of the existing definition. Thus, notices of the
despatch of goods, invitations, or printed letters could not be sent at the
privileged rate, while, e.g., notices of marriages could. So far as the Union
was concerned, in 1860 the privilege was limited to documents reproduced
by mechanical means.[483] The maximum limit of weight was reduced from

16 loth to ½ pfund (15 loth). This definition was introduced in the Prussian
inland service in 1861. The rate of postage was also modified in that year.
The rate of 4 pf. for each loth was retained, but with the proviso that the
charge on packets sent under band should not exceed twice letter rate. This
effected a great reduction of charge for the heavier packets. Whereas
previously the rate for a packet under band weighing 10 loth, sent more
than 10 German miles, had been 18 sgr., it now became 6 sgr.[484] In 1865 a
special rate of 4 pf. for printed matter sent in the form of an open card was
introduced in Prussia.[485] The simplification of definition and reduction of
rate resulted in a large increase of traffic.
In 1867, when the North German Postal Services were unified, the penalty
for abuse of the privilege was reduced to a surcharge of four times letter
rate, but not less than a thaler; and the law of 1871, founding the Imperial
Post Office, abolished the fine because it had been found that the offences
were for the most part committed through ignorance of the regulations.
Slight changes were made in the regulations under which printed matter
was admitted to the privilege, but no change was made in the rates of
charge.
The law regarding the Imperial Post Office (28th October 1871) left the
fixing of rates for printed matter to the Imperial Chancellor. The maximum
limit of weight was raised from ½ pound (250 grammes) to 1 pound (500
grammes). The rates of postage were ⅓ sgr. for each 40 grammes up to 250
grammes, with a maximum of 2 sgr.; from 250 to 500 grammes, 3 sgr.[486]
The large increase of traffic resulting from the reductions in the rates for
printed matter and for samples caused practical difficulties, and in 1873[487]
the acceptance of letters, postcards, printed matter, and samples was to be
only in the Briefkasten.

In 1874[488] the limit of weight for printed matter was raised to 1
kilogramme, and the rate was made—

Not exceeding 50 grammes 3pf.
50 to 250 grammes 10pf.
250 to 500 " 20pf.
Over 500 " 30pf.

In 1879 (order of 8th March) the definition of printed matter was further
extended.[489]
The tariff of 1874 raised by about 50 per cent. the postage on packets
between 50 and 100 grammes. Against this protests were made, especially
since the rate for the transmission of such packets for the furthest points of
the Universal Postal Union was no greater than the rate for transmission
within Germany. In 1890 the rates were modified, packets between 50 and
250 grammes being divided into two groups, 50 to 100 grammes, and 100
to 250 grammes. The rate for the first was made 5 pf., for the latter it
remained 10 pf. The increase of the maximum limit of weight has led to
practical difficulties.[490]
This traffic has attained large proportions. In 1910 the number of packets of
printed matter passing in the inland service was nearly a thousand millions.
[491]

(II) SAMPLES

United Kingdom

In England, letters containing samples and patterns were from the first
establishment of the Post Office charged with double postage. In 1753,
arising out of the general dissatisfaction with the Post Office felt at that
time by the trading public, the legality of the double charge was contested.
Merchants, while admitting that any letter containing a pattern or sample
which should weigh as much as an ounce must pay at the ounce rate,
contended that, if weighing less than an ounce, the letter should be charged
according to the number of sheets of paper, and that the pattern which was
enclosed should be ignored.[492] The Act of the 9th of Anne prescribed the
postage on "every single letter or piece of paper" not of the weight of one
ounce, and prescribed that "a double letter" should pay double rate.[493] The
contention of the merchants was that the enclosure of a pattern or sample
did not convert a single letter into a double letter, and that to constitute a

double letter there must be a second sheet of paper—a contention which is
sound enough if postage be regarded as a tax on communications and not as
a mere charge for the conveyance of a packet. At Bristol, Manchester, and
Gloucester, legal proceedings were taken against local postmasters for
demanding and receiving more than the legal postage. In each case a special
verdict, in almost identical terms, was given, and the Postmasters-General
were advised by the Attorney-General that the decision was likely to go
against the Crown if they brought up one of the verdicts for argument. In
their difficulty they resorted to Parliament, and obtained specific statutory
authority for an additional charge in respect of patterns and samples.[494]
This state of affairs continued until 1795, when samples were given a
definite statutory privilege. Under an Act of that year it was provided that a
packet of patterns or samples might pass as a single letter on condition that
it did not exceed 1 ounce in weight, that it was open at the sides, and that it
contained no writing other than the name and address of the sender and the
price.[495] This privilege was continued by the Act of 1801.[496] In 1805 an
additional penny was charged on all such packets.[497] In 1812 a further
addition to the postage was made, viz. an addition of 2d. for every "letter,
packet, or cover not exceeding an ounce in weight" and containing a pattern
or sample, if "closed or not open at the sides," or an addition of 1d. if open
at the sides.[498] By the consolidating Act of 1837 it was provided that
packets or covers containing patterns or samples and not exceeding an
ounce in weight, if open at the sides and without any "letter or writing in,
upon, or within such packet or cover," other than the name and address of
the sender and the price, should be charged as single letters, but "letters not
open at the sides containing patterns or samples and not exceeding 1 ounce
in weight" were to be charged as double letters.[499] In 1839 the Treasury
were empowered to fix rates of postage for all letters by weight,[500] and in
1840 rates of postage, charged according to weight alone, "without
reference to the number of sheets or pieces of paper, or enclosures," were
legalized.[501] This Act contained no special provision in respect of packets
containing samples or patterns.
On the 1st October 1863, with the declared object of benefiting trade and
commerce by affording facilities for the cheap transmission of bona fide
trade patterns and samples of merchandise throughout the country, an

"Inland Pattern and Sample Post" was established. Since the Post Office,
and the Post Office alone, had the means of conveying such articles at a
moderate rate of charge to and from all parts of the country, including even
the most remote, it was thought some special concession ought to be made.
The privilege was, however, restricted within narrow limits, as it was feared
that a large increase in the number of moderately heavy packets would
impede the work of the Post Office. It would, moreover, seriously affect the
amount of the payments to railway companies for the conveyance of mails,
a matter of grave anxiety to the Post Office at that time.[502] The privilege
was therefore restricted to genuine samples, and no article of intrinsic value
might be sent at the reduced rate.
The original rates were:—

Under 4ounces 3d.
" 8 " 6d.
" 16 " 1s. 0d.
" 24 " 1s. 6d.

The computations of the financial effects of the rates were made—as was
usual in such cases—by estimating the effect on the gross revenue, taking
into account the probable increase in the number of packets, and estimating
also what additional expense would be incurred in dealing with the
additional traffic.[503] The main financial principle seems to have been that
as the letter rate was enormously profitable, a reduced rate for a
comparatively small volume of traffic could be given without involving
actual loss, and without any serious result on the net revenue.
In 1864 the rates were reduced by one-third. In 1865 the exclusion of
articles of intrinsic value was abandoned; but there was no relaxation of the
essential condition that the articles must be bona fide samples. In 1866 there
was a further slight modification of the rates. The number of packets sent at
the privileged rate increased from half a million in 1864 to a million in
1865, and by 1868 the number had reached three millions.
The facilities afforded by this post were taken advantage of to a large extent
for the forwarding of small packets of goods on sale or in execution of an
order. It was estimated that at least half the packets were not genuine

samples at all, but contained goods of this kind; and the definite restriction
of the post to its original purpose of carrying trade samples and patterns was
deemed necessary. This was provided for in the Act of 1870, the rate of
postage being at the same time reduced to ½d. for every 2 ounces.
The enforcement of the restriction gave rise to considerable public
dissatisfaction. It was apparent that fairly general use had been made of the
sample post for the transmission of small parcels of all kinds of goods.
Many persons living in remote parts of the country were in the habit of
obtaining supplies of goods of various kinds by this means; and it was
alleged that by the facilities afforded by this post some industries, such as
lace-making, were actually created in certain districts, or at any rate were
greatly helped. The post was also much used for the sending of small
personal gifts.
Public agitation against the restriction became so strong that the postal
authorities, although apparently holding the view that a general parcel post
was indefensible in principle, became fearful that, unless the public were
given some concession on this point, an attack might be made on the 1d.
rate for ordinary letters. Such an attack, if successful, would of course have
been fatal to Post Office revenue. It was proposed, therefore, to make
definite provision for the transmission by post at low rates of postage of
small packets containing articles other than samples. A rate for small
parcels, whatever the contents, would at the same time remove the difficult
and unsatisfactory task of deciding what was or was not a sample or pattern.
These objects might be secured by a general reduction of the rates for
inland letters; and this course was ultimately adopted, after some hesitation
from fear of the effect on the revenue. The rates on the heavier inland letters
were accordingly reduced by Treasury Warrant of 16th August 1871, and
the sample post at the same time abolished.[504]
In the early 'eighties there was a strong demand from the public for the re-
establishment of the sample post. The advantage to trade was emphasized,
and attention was called to the existence of a privileged rate for samples on
the Continent and in the international service. The existence of a low
sample rate in the international service led, indeed, to a curious
development. As samples which, if posted in this country, would be charged
2d., could be posted on the Continent for foreign transmission at a charge of

1d., several firms in England were in the habit of sending large numbers of
sample packets in bulk to Belgium, where they were posted at the 1d. rate
addressed to places in England. The result of this manœuvre was that,
instead of receiving the inland postage of 2d. for these packets, the British
Post Office performed practically the same service in respect of them as if
they had been posted in England, but received nothing, since under the
Postal Convention the whole of the postage on foreign letters is retained by
the country of origin. It was estimated that there was in this way a loss to
revenue of £1,000 a year.
It was in great part the existence of this anomaly which led to the re-
establishment of the sample post in 1887. No exact estimate was made of
the cost of dealing with sample packets, but the authorities stated that the
rates proposed, viz. under 4 ounces 1d., over 4 ounces and under 6 ounces
1½d., and over 6 ounces and under 8 ounces 2d. (8 ounces to be the
maximum weight), would be remunerative, and that any immediate loss to
revenue in consequence of the reduction in rates would therefore be likely
soon to be made up. This statement must, however, have been based on
general considerations and estimates. In the following year the Secretary to
the Post Office (Sir Arthur Blackwood) told a Select Committee of the
House of Commons that the Post Office had not any return of the cost per
million letters, or any return of that kind by quantity, and that the Post
Office could not give the actual cost per million letters.[505]
The post, which was re-established in the interests of trade and could only
be used by traders, was continued until 1897, when the Jubilee reductions
brought down the postage on ordinary letters to the level of the sample rate.
The sample post was never more than a very minor part of the Post Office
business. In 1865, when the total number of letters passing by post was
some 700 millions, the number of samples was one million. In 1870 the
number of samples was four millions. In 1896, the last year of its existence
as a special rate, the number of samples was nine millions. In that year the
number of letters, etc., was some 3,000 millions.
As a result of the increase of letter postage on the heavier letters, as a war
measure, it has been deemed necessary to re-establish the inland sample
post. On the 1st November 1915 the post was accordingly re-established

substantially as it existed prior to 1897. The rates of postage are the same,
and the regulations practically unaltered.

France

In France, by the decree of 17-22 August 1791 (Article 16), samples were
accorded a privileged rate of one-third letter postage, with the reservation
that in no case could the postage charged be less than that on a single letter.
In 1848, when a low uniform rate for letters was adopted, it was thought
that the privilege given to samples need not be continued. The suppression
of the special privileged rate was found almost to exclude samples from the
mails, and in 1856 they were again given a privilege by the extension to
them of the rates and conditions applied to printed matter.[506] The limit of
weight for samples was fixed at 3 kilogrammes, and the limit of each
dimension at 45 centimetres; but these limits were found to be too great.
The post became encumbered with large packets which it could not enclose
in the mails, and which, as a matter of fact, it had not the means of dealing
with. Consequently, in 1858 the limit of weight was reduced to 300
grammes, and the maximum dimension to 25 centimetres.[507] It was still
found, however, that packets of samples gave rise to considerable
embarrassment in the service. Their irregular size rendered stamping more
difficult, and their volume and the unsatisfactory manner in which they
were made up for the post caused inconvenience, especially in the travelling
offices, where space is limited.
The object in view in establishing the sample rate had been to encourage
trade by the distribution of trade samples, and not to found a new general
means of conveyance for small parcels. But commercial houses were not
slow to take advantage of the means afforded for the distribution of small
packages of goods. At first it was made a condition of acceptance at the
privileged rate that the articles should bear the name of the dealer or maker,
but this precaution was abandoned before long.[508]
A minimum rate of 1 centime for packets not exceeding 5 grammes in
weight had been fixed in 1856. This proved too low, and in 1871 the

minimum was raised to 30 centimes, which proved to be too high. The
number of samples, which in 1869 had been 9,751,970, fell in 1872 to
3,461,981.[509] In December 1873 this rate was reduced by one-half, and in
August 1875 the rate was fixed at 5 centimes for each 50 grammes. Under
this rate the numbers increased rapidly: 5,267,964 packets were sent
through the post at the sample rate in 1874, and by 1889 the numbers had
risen to 25,731,985. The present rate is 5 centimes per 50 grammes, with a
maximum limit of 500 grammes. The number of sample packets in the year
1912-13 was about 78 millions.[510]

Germany

Samples were first given a privilege in Prussia in 1825.[511]
Packets containing samples were then given single letter rate up to 1½ loth,
and half the letter rate for heavier packets. They must either be sent
enclosed in a letter or attached to a letter, and the letter must not exceed ¾
loth in weight.
In 1850 the following rates for samples were established:—

Not exceeding 10 German miles 1 silver groschen
10 to 20 German miles 2 "
Over 20 " 3 "

and for heavier packets, half letter rate.
Under the Austro-German Postal Union, established on the 6th April 1850,
the ordinary rate for single letters was charged in the case of samples for
each 2 loth, according to distance. In 1852 the Prussian internal rates for
samples were brought into accord with those of the Union. Samples must be
sent in unsealed covers and must be easily recognizable as such. The
maximum weight was 16 loth, and the maximum charge was not to exceed
six times letter rate.

In 1853 a further privilege was conceded. When sent together with a letter,
samples might be enclosed in sealed covers; but in order to enable the
administration to maintain a control over the use of the privilege, the postal
officials were empowered at discretion to require the sender to open such
packets.[512]
In 1860, when the Austro-German Postal Union was renewed, the limit of
weight for samples was reduced to ½ pound (15 loth). Following this
reduction the Prussian rates for samples were reduced in 1861: for samples
weighing more than 2 loth only the rate for a double letter (according to
distance) was to be charged. The reduction was not followed by any large
increase in the number of sample packets. Every sample must still be
accompanied by a letter, a circumstance which made the application of the
sample rate heavy. With a view to the further encouragement of the traffic
this requirement was removed in 1863, and the despatch of samples under
band, in envelopes, little bags, or similar covers, authorized. New rates
were introduced as follows: 4 pf. for each 2½ loth. To prevent abuse of the
privilege it was provided that no article of marketable value could be sent at
the reduced rate. The packet must be marked to show that it contained a
sample, and might also bear the name and address of the senders, the trade
mark, and the number of samples and prices.
In 1871 the rate for the Imperial Postal Service was made ⅓ sgr. for each 40
grammes with a maximum of 2 sgr. Practical difficulties arose from the
great increase of traffic which followed this reduction of rate. Large packets
and packets of awkward shape were posted, causing practical difficulties,
especially in the sorting carriages, and it was found necessary to decline to
accept samples over the counter, and to forbid the acceptance of samples in
roll form. The sample rate was, moreover, complicated as compared with
the letter rate. While there were but two rates for letters, there were five for
samples, viz. 4, 8, 12, 16, and 20 pf. In 1875 the sample rate was simplified
by the introduction of a single rate of 10 pf. for all sample packets, with a
maximum limit of weight of 250 grammes.
The maximum limit of weight was raised in 1898 to 350 grammes, and in
1914 to 500 grammes. The present rates for samples are:—

Not exceeding 250 grammes10 pf.

250-500 grammes 20 pf.

Prepayment is compulsory.
The sample post traffic has increased, but has not attained large proportions
compared with letters. In 1878 the number of samples was 4,389,000 and in
1913-14, 87 millions (inland service). The minimum rate (10 pf.) is high
compared with the minimum rates for ordinary printed matter and
newspapers, and a minimum rate of 5 pf. has been suggested.[513]

(III) COMMERCIAL PAPERS

United Kingdom

Letter postage was found to be high for the formal documents of commerce,
and from very early times there has been a disposition to accord an
exceptionally low rate to such documents. The Act of 1660 conferred a
special privilege on merchants' accounts not exceeding one sheet of paper,
bills of exchange, invoices, and bills of lading. They were to be "without
rate in the price of letters," that is to say, no account was to be taken of
them. This privilege was continued by the 9th of Anne.[514] The
Postmasters-General contended that the privilege was granted in the case of
letters for foreign transmission only, but the merchants affected to interpret
the Act as applying in the case of inland letters also. They naturally pointed
out that restriction of the privilege to foreign letters imposed on traders
within the realm a burden of postage not imposed on traders beyond the sea,
[515]
and the Postmasters-General found so much difficulty in maintaining
the additional charge in the case of inland letters that they were ultimately
driven to apply to Parliament, in 1720, for the express sanction of law.[516]
From this time commercial or other papers obtained no special advantage
over ordinary letters in the inland service; and in 1801, when the Post
Office was endeavouring by all possible means to increase its net revenue,
the privilege in the case of foreign letters was withdrawn.[517]

The introduction of a specially low rate for commercial documents was
considered in the 'thirties of last century by the Treasury Commissioners of
Inquiry into the Management of the Post Office, who recommended the
adoption of a general ½d. rate.[518] Nothing came, however, of this
suggestion.
The privilege to commercial papers has since been restored by little and
little as extensions of the book post, established in 1847 (q.v.), and at the
present time most of the formal documents of commerce not exceeding 2
ounces in weight pass at the reduced rate of ½d.

France

(Papiers d'Affaires)

In the French service commercial papers (papiers d'affaires) constitute a
special category of postal packets. Documents included under this heading
may be described briefly as papers and documents, whether wholly or
partly written, containing communications which are not of a personal
character.
Until 1856 such papers were charged at the same rate as letters. This rate
was found to be burdensome,[519] and in 1856 a rate of 1 centime for each
10 grammes was established—the same rate as that for samples and
ordinary printed matter—but the minimum charge was fixed at 50 centimes.
In 1871 the rate was altered to correspond with that for samples. It now
became 30 centimes for the first 50 grammes, and 10 centimes for each
further 50 grammes. As a consequence of the adhesion of France to the
Universal Postal Union, the rate, together with that for samples, was
changed in 1875 to 5 centimes for each 50 grammes. The discarding, in the
case of papiers d'affaires, of the principle of a minimum charge equal at
least to the minimum charge for letters, had unfortunate results. It has been
found extremely difficult always to distinguish between documents entitled
to be regarded as papiers d'affaires and documents which are of a personal
character, and therefore subject to letter postage. The privilege is at present

restricted to packets weighing not more than 20 grammes, and the rate of
postage is 5 centimes. Packets weighing more than 20 grammes are subject
to letter postage.
The number of packets passing as papiers d'affaires increased rapidly, but
still forms only an inconsiderable fraction of the total number of postal
packets. In 1856 the number was 39,747; in 1889 it exceeded 15 millions;
and in 1913 it reached 58 millions.
It is necessary to issue a long and detailed list showing the kinds of
documents admissible at the reduced rate, and the difficulty of
administering the rate is considerable.

Germany

(Geschäftspapiere)

After the abolition of the old Prussian Schriften- und Aktentaxe[520] in 1861,
neither the North German Bund nor the Imperial administration granted a
special rate for wholly or partly handwritten communications which were
not of the nature of personal and individual correspondence. Either letter or
parcel rate must be paid on such packets. In the international service the
rate for such was the same as the rate for printed matter, and the
unfavourable position in the inland service in this respect gave rise to public
complaints. In 1900, therefore, a special class of packets, named
Geschäftspapiere, was introduced in the internal service of the German
Imperial administration. Papers partly or wholly written, but not of the
nature of private or personal communications, were admissible at a reduced
rate of postage.[521] Except for local traffic the new rates were:—

Not exceeding 250 grammes 10 pf.
250-500 grammes 20 pf.
500 grammes to 1 kilogramme (maximum) 30 pf.

Compared with the total postal traffic the number of packets passing at the
reduced rate is quite small, but it is increasing, and is sufficiently large to
indicate that the privilege affords a considerable advantage to the public.
The number of packets of Geschäftspapiere was:—

190410,793,620
190716,789,260
191023,632,220
191334,328,950

(IV) POSTCARDS

The idea of postcards originated with Dr. H. von Stephan, who submitted a
proposal for their introduction at the meeting of the delegates of the
German Postal Union at Karlsruhe in 1865. Dr. von Stephan had realized
that the ordinary form of the letter missive, although most suitable in many
ways for many kinds of correspondence, was not always convenient. Much
commercial correspondence might be conducted with briefer and less
formal communications, and for such short and urgent messages a simple
and less costly means would be welcomed.
The proposal was therefore for the issue of cards which should be addressed
on the front, and at the back should bear the written message.[522] The cards
should be transmitted unenclosed. The proposal was not well received by
the delegates. It was, however, revived in 1869 by Professor Herrmann of
Vienna, who brought it to the notice of the Austrian postal administration. It
was viewed favourably by that administration, and the cards were
introduced in the Austrian service on the 1st October 1869, being sold at the
price of 5 kreuzer. The innovation was an immediate success, nearly three
million cards being sold in the first three months; and following on this
success the cards were soon introduced in most other countries.
Except in France, and for the first two years in Germany, the rate charged
has from the first been one-half the minimum rate for letters. In France the

minimum for postcards bearing ordinary messages has never been less than
10 centimes.[523] This reduction of 50 per cent. cannot be justified on any
ground of cheaper handling. The manipulation and conveyance of postcards
is perhaps slightly less expensive than that of ordinary light letters, but any
such difference is small, and in point of fact postcards are usually regarded
as causing a little more trouble in the process of sorting. For all practical
purposes it may safely be assumed that postcards and ordinary light letters
involve approximately the same cost for their handling and transmission.
[524]
This difference in the rates of postage charged on ordinary light letters
and postcards, respectively, is therefore either a standing evidence of the
fiscal character of the rate for light letters, or of the uneconomic character
of one or other of the rates, or of both.
The postcard has proved immensely popular. Its use for formal and
unconfidential communications is a great convenience. By avoiding the
necessity for folding and enclosing in envelopes, time is saved in the
making up of correspondence for the post; and the saving in postage when a
quantity is sent out is very considerable. The cards are a convenience also in
the practical working of the Post Office service. Their use diminishes both
the weight and bulk of the mails; on account of their lightness and
uniformity of size and shape large numbers can be packed together in small
space. In this respect they contrast strongly with the irregularly shaped
packets of books or of general merchandise, which represent the maximum
of encumbrance to Post Office working. The introduction of the picture
postcard gave a great impetus to the use of this means of correspondence.
Except in France, the traffic has assumed large dimensions. In the United
Kingdom in 1913-14 the total number of postcards was about 926,000,000,
while the total number of packets passing at the letter rate was about
3,478,000,000.[525]

(V) RATE FOR PRINTED MATTER FOR THE BLIND

The low rate for matter printed in raised type for the use of the blind is a
purely philanthropic concession.[526]

In the United Kingdom the rates are:—

For a packet not exceeding 2ounces in weight ½d.
" exceeding 2ounces and not exceeding 5 lb. 1d.
" " 5lb. " 6 lb 2d.

It will be noted that the initial penny rate is maintained (the 2 ounces for
½d. being merely the ordinary printed matter rate), but a comparison with
the ordinary parcel post rates (see Chapter III) will show that if, as there is
reason to believe, those rates are unremunerative, the rates for literature for
the blind must involve a heavy loss on each packet. The number of packets
is, however, only some 300,000 per annum.
Similar low rates are in operation in other countries. In the United States
packets containing matter of this kind are carried free.

(VI) MINOR RATES IN THE UNITED STATES AND
CANADA

In the United States and Canada a special method of differentiating rates of
postage has been adopted. All postal traffic is termed "mail matter," and is
classified in four groups, to each of which is applied an appropriate rate.
The classification, which is almost identical in the two countries, is based
partly on the general character of the packets (size, shape, etc.), but more
largely on certain general principles of administration, and on the intrinsic
value of the contents. Thus the ordinary letter, which is the most important
and valuable traffic, is placed in the first class of mail matter, and is charged
the highest rate. Newspapers and periodicals, which are regarded as of great
importance in aiding the education and enlightenment of the people, are
placed in the second class of mail matter and are given the lowest rate.[527]
Books and all other printed matter, commercial papers, postcards, etc., are
regarded as of less importance than letters, and are deemed to be less
entitled to encouragement from the State in their distribution, but still
entitled to preferential treatment as compared with packets containing

miscellaneous articles. They are accordingly placed in the third class of
mail matter, and are given a rate intermediate between that of the first class
and that of the second. All other articles sent by post—the residuum of
postal packets—are placed together in a fourth class of mail matter, to
which is applied a rate higher than the third-class rate, but considerably
lower than the first-class rate.[528]
The rates for first-class matter (letters) and second-class matter (newspapers
and periodicals) in the United States have been dealt with. They may be
repeated here for purposes of comparison: the rate for letters is 1 cent for
each 2 ounces or fraction of 2 ounces; the rate for newspapers is 1 cent a
pound or fraction thereof when sent from publisher to subscriber—when
sent otherwise the rate is 1 cent for every 4 ounces. On third-class matter
the rate is 1 cent for each 2 ounces or fraction thereof, and on fourth-class
matter the rate is 1 cent for every ounce or fraction of an ounce. With the
view of encouraging agriculture, seeds, cuttings, bulbs, scions, roots, and
plants are given the same rate as ordinary printed matter in the third class.
In Canada the rate of postage on first-class matter is 2 cents per ounce or
fraction of an ounce, except on postcards, for which the rate is 1 cent, and
local or "drop" letters, on which the rate is also 1 cent (supra, p. 255). On
second-class matter the rate is ¼ cent a pound when posted by publishers to
subscribers, otherwise 1 cent for each 4 ounces or fraction thereof. On
general third-class matter (including samples) the rate is 1 cent for each 2
ounces or fraction thereof: a special rate of 2 cents for the first 4 ounces and
1 cent for each additional 4 ounces or fraction thereof is given for seeds,
cuttings, roots, bedding-plants, scions, or grafts. The object of this privilege
is evident. The rate on fourth-class matter is 1 cent for each ounce or
fraction thereof.
These rates have not been calculated with reference to the cost of the
service in each case. Classification was introduced in the United States
Postal Service as far back as 1863, but until 1906 no attempt had been made
to apportion the total cost between the various classes. The estimate then
made showed that the second-class mail involved a heavy loss, probably
equal to six or seven times the rate of postage.[529]

V

LOCAL RATES
United Kingdom

Local postal services, providing for the delivery of local letters at reduced
rates of postage, existed in the United Kingdom over a long period. The
first service was established in London in 1680. Up to this time the business
of the Post Office had been restricted to the transmission of letters between
the post towns, and no rate of postage existed except in respect of letters
sent over appreciable distances.[530] The idea of a local service seems to
have originated with a Mr. Robert Murray; but the London local post was
actually established by William Dockwra, "a merchant, a Native and Citizen
of London, formerly one of his Majesty's Sub-Searchers in the Custom
House of London." Other citizens of London were concerned in the
undertaking, which was established without reference to the authorities of
the Post Office, and was intended to be purely a private commercial
undertaking.[531]
Under Dockwra's scheme London, with Westminster and the suburbs, was
divided into seven districts or "precincts," in each of which was a "sorting
house." Scattered over the City and suburbs were from four hundred to five
hundred receiving houses for the taking-in of letters. Messengers called at
the houses for letters every hour. Letters and parcels not exceeding 1 pound
in weight or £10 in value were accepted and conveyed at the uniform
charge of 1d., payable in advance.
The service was not restricted to letters for delivery within the London area
and the surrounding district. Letters which were to be transmitted through
the General Post[532] were accepted at any of the receiving offices, and
conveyed to the General Post Office in Lombard Street; and letters received

in London by the General Post were delivered by the penny post, if for
places outside the General Post delivery.[533] This facility proved of much
advantage to the public, and led to a large increase in the number of General
Post letters. When well established, Dockwra's new system proved
profitable and attracted the attention of the authorities of the General Post
Office. They contended that the service was an infringement of the
monopoly conferred on the Postmasters-General by the Act of 1660,[534]
and in 1683, at the instance of the Duke of York, in whom were vested the
profits of the General Post Office, an action was brought against Dockwra
to restrain him from continuing a breach of the privilege of the Postmasters-
General. Dockwra was ordered by the court to pay nominal damages, and
was forbidden to continue his penny post.
The post was not, however, abolished, but was taken over and managed by
the Postmasters-General. Although the service had been decided to fall
within their monopoly, the rates charged rested on no legal authority. No
statute authorized the conveyance anywhere of letters at the rate of 1d. No
authority existed for any rate below the minimum General Post rate of 2d.,
under the Act of 1660, a state of affairs which continued until the passing of
the Act of 1711. A penny rate of postage was then fixed for all letters
"passing or repassing by the carriage called the Penny Post, established and
settled within the cities of London and Westminster, and borough of
Southwark, and parts adjacent, and to be received and delivered within 10
English miles distant from the General Post Office in London."[535] At first
the service had included only the cities of London and Westminster, the
borough of Southwark, and the immediate suburbs; but the residents in the
neighbouring towns and villages, recognizing the advantage of the system,
soon asked that it might be extended to include their respective localities,
voluntarily agreeing to pay an additional penny on delivery, on each letter.
This further charge was at first appropriated by the messengers as their
remuneration; but as the amount received by them in this way was found to
exceed what might fairly be regarded as reasonable wages, the second
penny was in 1687 made part of the ordinary revenue of the Post Office.
There was, however, no legal authority for the collection of this additional
charge, which remained a voluntary payment until 1730.[536]

The limit of weight for packets sent by the penny post was also extended,
parcels of considerable size and weight being accepted. The rate of postage,
however, remained uniform at a penny. One of the charges against Dockwra
in later years, when he was dismissed from the office of Comptroller of the
Penny Post, to which he had been appointed under William III, was that he
forbade the taking in of any but very small band-boxes, and all parcels over
1 pound in weight.[537]
The penny post was found to be a great convenience to Londoners and
dwellers in the vicinity.[538] It facilitated both local intercourse and, through
its connection with the General Post, general intercourse with all parts of
the country. It was also advantageous in a way which was not satisfactory to
the Postmaster-General. For some years before its establishment there had
been much difficulty from the evasion of postage resulting from the illicit
transmission of letters. Carriers, especially, made a business of the
conveyance of letters. The difficulty had been so serious that in the reigns
both of Charles II and of James II special officers had been appointed
whose duty it was to search any person or vehicle suspected of carrying
clandestine mails. The establishment of the penny post led to a very large
development of this traffic. Previously, when the carriers arrived with the
letters, there was no means at their disposal for effecting distribution and
delivery within London, other than by themselves delivering the letters
individually, or by employing special messengers, or, in the last resort, by
employing the General Post, to avoid whose charge was the whole object of
entrusting letters to the carriers. The penny post removed this difficulty, and
the public were not slow to avail themselves of the opportunity afforded.
[539]

The penny post did not, however, mark the limit of possibility in the way of
cheap postal facilities. In 1708 Charles Povey established a halfpenny post
in London, and found this low rate profitable. His undertaking, like that of
Dockwra, proved to be an infringement of the monopoly of the
Postmasters-General, and was suppressed within a few months, although
Povey was very reluctant to discontinue his service.[540]
The London penny post was for a long period the only local post in the
kingdom. Its advantages were, however, generally recognized, and the Post
Office Act of 1765[541] gave to the Postmasters-General power to establish

penny posts in any town where that course seemed to them expedient.
Under this authority numerous penny posts were established in all parts of
the country. As many as 202 such penny posts were established between
1830 and 1837. They were established only when it could be reasonably
anticipated that the yield of the penny postage would cover the expenses of
the service; but when once established they were not usually discontinued,
even if the revenue fell below the expenses.[542] Like the London penny
post, these local services included the area surrounding the town in each
case. For transmission within a penny post area the rate of postage was 1d.;
for transmission to another such area the general rate was charged in
addition; and another penny was charged in respect of the second penny
post.

The conveyance of parcels ceased in 1765. The Act of that year[543] forbade
the transmission by the penny post of any packet over 4 ounces in weight
unless it had passed, or was intended afterwards to pass, by the General
Post. During all this period, however, the people of London enjoyed an
efficient postal service which in point of lowness of charges was in advance
of anything they have enjoyed since, unless the privileges of the postcard
and the halfpenny post, that is, of a rate half the minimum (and only) rate of
the penny post, can be set against the cheap transmission of considerable
packages by the old service.

A further Act of 1794[544] empowered the Postmasters-General at their
discretion to extend the limits of the post beyond the 10-mile circle
prescribed by the Act of 1711. No additional postage was imposed on letters
delivered beyond the 10-mile circle. Under the Act of 1730 the charge
would be 2d. An additional rate of 1d. was, however, imposed on all letters
posted within the extended limits and beyond the 10-mile circle; and also
on all letters posted without the original limits of the penny post and
delivered within those limits, i.e. the cities of London and Westminster, and
the borough of Southwark, with their suburbs. By this Act prepayment of
postage, hitherto compulsory in the penny post, was made optional.

An Act of 1801[545] raised to 2d. the rate for letters passing by the penny
post, whether or not they were to pass by the General Post, within the
original limits of the penny post. For letters passing by the penny post,
posted or delivered outside the original limits, no additional rate was

prescribed. The charge was already 2d.; and the rate of postage on letters
passing by the London local post therefore now became uniformly 2d.
Henceforward the service was known as the "twopenny post."
The Act of 1801 contained an important clause (clause 5) of general
application, providing that the Postmasters-General might at discretion
undertake the conveyance and delivery of letters "directed to persons
abiding in towns, villages, and places (not being post-towns)," for such
sums as might be agreed upon between the Postmasters-General and the
inhabitants. Under this provision it was found possible to extend the service
to a considerable number of places.[546]

An Act of 1805[547] imposed an additional charge of 1d., making 3d. in all,
on letters sent by the twopenny post and not passing by the General Post,
directed to or sent from places beyond the limits of the General Post
delivery; and on every letter passing by the General Post and directed to
places beyond the limits of the General Post delivery, and delivered by the
twopenny post, an additional charge of 2d.[548] There were now, in reality,
two local posts in the London area—the twopenny post, for letters
transmitted between places within the limits of the delivery of the General
Post; and the threepenny post, for letters directed to or sent from places
within the limits of the local service, but beyond the limits of the General
Post delivery. In 1831 the limits of delivery of the twopenny post were
extended to include all places within a radius of 3 miles of the General Post
Office; and in 1833 the limits of the threepenny post were extended to
include all places beyond the 3-mile limit, and not exceeding 12 miles from
the General Post Office.[549] No further modifications of importance were
made before the establishment of uniform penny postage.
The introduction of a uniform rate of postage for the whole country of 1d.,
only half the lowest rate which had been charged in the London local post,
obviously made unnecessary the continuance of that post, and also of the
penny posts scattered up and down the country; or rather extended to the
whole country the benefit of rates based on items of local cost only, since
the system of uniform postage irrespective of distance rests on the
recognition of the preponderating cost of the local or terminal services, and
the relatively insignificant cost per letter of the service—conveyance from
place to place—which depends on the distance of transmission.

Financially the London penny and twopenny posts were always successful.
Under the penny rate the profits had approached half the gross receipts—in
1800 they were 43 per cent.—and under the twopenny rate at once rose to
more than 60 per cent., in 1825 reaching 67 per cent. The net revenue,
which in 1801 under the penny rate was £16,286, had in 1837 under the
twopenny rate risen to £73,334.[550]

Canada

Special local rates have from quite early dates been in operation in America.
If in England the lowest rate fixed for General Post letters had been found
too high to afford reasonable accommodation for the public in London and
other cities, it may well be imagined that the lowest rate in Canada, gauged
as it was to the needs of a service which should cover a country of vast area
and ill-provided with roads, would be found altogether high for local letters.
Moreover, in most places no sort of delivery service existed. Local letters
could only be placed in the post office to be called for by the persons to
whom they were addressed. In Canada the actual cost of the conveyance of
the mail was consequently disproportionately high compared with other
expenses of the service, and the justice of a lower rate for such letters as
obtained no benefit from that expenditure naturally suggested itself. The
lowest rate fixed by the Act of 1765 for transmission within Canada of a
single letter was 4d., and, rather than charge such a rate on local letters, the
deputies in Nova Scotia allowed such letters to be deposited in the post
office free.
At Confederation a special rate for local letters of 1 cent per ½ ounce was
established. At this time there was still no authorized house-to-house
delivery of letters in any part of Canada, and local letters were actually
what they are always termed, viz. "drop" letters. They were letters dropped
into the post office letter-box and handed out at the office to the addressee
on application. When in 1875 delivery by letter-carrier was introduced in
certain towns, the drop-letter rate was not disturbed. It was thought,
however, that a postage charge of 1 cent was not sufficient to cover the cost
of the service of delivery at the place of address, performed by an expensive
establishment of letter-carriers; and in 1889, on that ground, though much
against the wishes of the mercantile community, the rate was raised to 2

cents an ounce in cities and towns where the system of delivery by letter-
carrier was established, the existing rate of 1 cent per ½ ounce being
continued in other cities and towns.
The ordinary letter rate was still 3 cents. This change therefore left all local
letters with a lower rate than ordinary letters.[551]
The 2-cent rate proved to be too high. Much dissatisfaction resulted, and
evasions were constant. In defiance of the law, which conferred on the
Postmaster-General the monopoly of the carriage of letters, merchants made
arrangements for the transmission and delivery by their private messengers
of their letters for local delivery. The evil assumed such proportions that the
suppression of the private carriage of local letters was deemed out of
question, and the Government concluded that the only satisfactory solution
of the difficulty was the re-introduction of the general 1 cent drop-letter
rate.[552] So great was the number of drop letters sent otherwise than
through the Post Office that no actual loss of revenue was anticipated from
a reduction of the rate, which should bring back those letters to the post.
This anticipation was more than realized. In a very short time after the
passing of the Act of 1898 legalizing the reduction to 1 cent, the gross
revenue from local letters surpassed that obtained under the 2-cent rate.

France

In 1658 a local service (la petite poste) was established in Paris by M.
Velayer. He obtained from the King the exclusive privilege of erecting
letter-boxes, which were opened three times daily, in various parts of the
city,[553] and set up an office in the royal palace at which tickets bearing the
words "Port-payé le ... du ... de l'an 1653" might be purchased at the price
of a sou. No money was paid to the letter-carrier by persons posting or
receiving letters. A label was affixed to the letter, which was then delivered
without further charge.[554] The service was not a success and was
discontinued.
In 1759 a local postal service was re-established in Paris by M. de
Chamousset. The new service was avowedly in imitation of the London
penny post. The rate was 2 sous for a letter not exceeding 1 ounce in
weight, delivered in Paris, and 3 sous if delivered in surrounding villages

not served by the general post. This venture proved more successful than
the earlier service of M. Velayer. At the outset it employed about two
hundred men, and the profits for the first year were 50,000 livres. But its
founder, M. de Chamousset, met with no better fate than Dockwra, the
founder of its prototype. Such large profits could not escape the notice of
the Government, and the service was taken over by the King, Chamousset
being given a pension of 20,000 livres as its inventor.[555] The service was
continued, and its success led to the establishment of similar local services
in other towns—Bordeaux, Lille, Lyons, Nancy, Marseilles, Montpellier,
Nantes, Rouen, Strasburg, etc.[556]
The ordinary letter rate in France remained at a moderately high level until
a comparatively late date, and a special rate for local letters continued until
1878. In that year the ordinary rate for letters was reduced to 15 centimes,
the level of the existing local rate, and since that time local letters have
enjoyed no special privilege in France.

Germany

In Germany the delivery of local letters in towns was for a long period
conducted as a private undertaking of the postmaster or letter-carrier.
Between 1842 and 1852 it was made a branch of the general postal service,
and the delivery charge (Ortsbestellgeld), which, in general, had been
retained by the letter-carrier as wages, was, in the latter year, made payable
to the general revenue. An arrangement was also made for the acceptance
and delivery of local letters, at the rate of 1 sgr.[557] If the letters were called
for at the post office (and the service of delivery at the house therefore not
performed) the rate was reduced to ½ sgr.; and when one person posted as
many as one hundred local letters at the same time, the rate for each letter
was no more than 4½ pf. (reduced in 1860 to 4 pf.), including delivery at
residence. When as many as fifty were posted at one time, the rate was
reduced to ½ sgr. By a regulation of the 21st December 1860 the limit of
weight for the single letter was, however, raised to ½ pound, and a rate of 2
sgr. imposed on heavier letters, but the rates were not otherwise materially
changed. The law of 16th September 1862 abolished the delivery fee on
ordinary letters. In 1865[558] the rate for local packets of printed matter was
reduced to 4 pf.

When, at the foundation of the North German Union in 1867, the postal
rates were reorganized, the question of the local rates proved to be one of
some little difficulty, since the existing rates differed very considerably in
the different parts of the Union. The Prussian rates were high as compared
with the rates in some other States; and any rate which could be applied
generally was likely to represent a considerable reduction of the Prussian
rates, but a considerable increase of the rates in other States. The
reorganization of the local rates was consequently delayed. After much
discussion a new local rate for places in the former Prussian postal territory
(excepting Berlin and Hamburg) was established:[559] for ordinary letters ½
sgr., for printed matter and samples ⅓ sgr. In Hanover the local letter rate
was made ⅓ sgr.; in Brunswick ¼ sgr.; and in Cassel, Erfurt, Frankfort-on-
Main, and Hamburg similar rates were established.[560]
From the 1st January 1875 a uniform rate of 5 pf. for local letters was
introduced throughout the Imperial postal territory. The rate was
irrespective of weight, but there was a maximum limit of 250 grammes. All
other local packets (postcards, printed matter, and samples) were subject to
the ordinary rates of postage. No special local rate was fixed for parcels: the
lowest zone rate was payable, and was, of course, in effect a local rate. The
general application of the new letter rate would, in certain cases, have
resulted in increased rates, and in those cases (Constance, Darmstadt, and
Karlsruhe) a rate of 3 pf.—the equivalent of the previously existing rate—
was established. In Berlin, in view of the specially expensive arrangements
for the delivery of letters, the rate of 10 pf. for local letters remained in
force.[561]
For the delivery of local parcels no charge had previously been made
beyond the rate of local postage, although in respect of all packets from
outside a delivery charge was collected. From the 1st January 1875,
however, local parcels were made liable to a delivery charge.[562] In
general, the local rates introduced on the 1st January 1875 remained for
more than a quarter of a century unchanged, but in course of time
difficulties in their administration developed. The order of the 18th
December 1874 had prescribed a special local rate for letters only; for all
other kinds of postal traffic the ordinary rates remained applicable.
Consequently, a local postcard was charged the same postage as a letter

weighing 250 grammes; similarly the rates for printed matter or samples for
local delivery were high when compared with the rate for local letters. Such
rates were, moreover, anomalous when compared with the rates for long-
distance traffic, which, for postcards, printed matter, and samples, were
much less than for letters. In fact, for local delivery printed matter and
samples had only to be placed in sealed covers in order to pass at the rate of
5 pf.
In many of the larger towns the delivery of local letters was undertaken by
private enterprise at rates much lower than those of the Imperial Post
Office. The undertakings secured a very large proportion of the local traffic,
and found even these low rates very profitable. Moreover, the large increase
in the number of post offices, and the withdrawal of numerous places from
the areas assigned to certain offices, had led, in many cases, to great
difficulties in deciding whether letters were subject to the general or the
local rate of postage.[563]
The regulations governing local traffic were accordingly revised under the
law of the 20th December 1899. Local rates were considerably reduced in
amount, and were made applicable to all traffic passing between a town
area and the neighbouring area (Nachbarorts-Verkehr),[564] by which the
advantage of these rates was greatly extended. In order to enable the Post
Office adequately to fulfil its public functions, as the phrase went, it was
thought necessary, in view of the development of the private undertakings,
to confer upon it the exclusive right to deal with local traffic. At first the
proposal was to extend the monopoly only to closed letters, but the
Reichstag widened the prohibition, and forbade private undertakings to
conduct arrangements for the transmission of letters, sealed or unsealed,
postcards, printed matter, or samples addressed to particular persons.[565]
The traffic left open to private enterprise, viz. the delivery of unaddressed
open letters, parcels, newspapers, and magazines, was regarded by most of
the proprietors as insufficient to warrant the continuance of their
undertakings, and on the 1st April 1900 almost all the private
establishments of this kind were discontinued. The proprietors were,
however, compensated by the State for the loss of their profits.[566] The first
undertaking of this kind had been established in Berlin in the 'seventies,
under the title Brief- und Druckschriften-Expedition. Its success led to the

establishment in Berlin and various other places of similar undertakings,
some of which were profitable, but most of which were unsuccessful. The
cheaper rates, however, attracted a considerable volume of traffic, and at the
time of their suppression some seventy-seven such undertakings were in
existence. Most of them were not of long standing, only fourteen of the
seventy-seven having been founded in the 'eighties, forty having been
founded in the years 1895-6-7, in a period of speculation resulting from the
high dividends paid by the Berliner Packetfahrt-Aktiengesellschaft. The
size of the undertakings varied largely. In some cases the whole business
was conducted by the members of a family; in others as many as a hundred
men were employed; and in the case of the Berliner Packetfahrt-
Aktiengesellschaft the letter traffic alone employed a thousand men. The
amount of traffic dealt with was considerable, and large additions to the
postal staff were found necessary.[567] Some of the employees of the private
establishments were taken over by the Imperial Postal Administration, and a
sum of 1½ million marks was paid as compensation to employees who were
not taken over.
Although special provision had been made in the statute with regard to the
amount of compensation to be paid to the proprietors, the determination of
the actual amount was a matter of some difficulty, owing largely to the
unsatisfactory and unreliable manner in which the accounts of many of the
undertakings had been kept.[568] In several cases also the owners asked
exorbitant amounts.
After much negotiation the sum to be paid was finally decided. It amounted
to some six million marks. In order to get rid of the private establishments
for the handling of private letters, etc., the Imperial Administration
therefore paid in all (i.e. including the compensation to the employees of
the private undertakings) a sum of about 7½ million marks.[569]

The new rates were as follow[570]:—

(a) Letters—
Not exceeding 250grammes in weight 5 pf.
(b) Postcards 2 pf.
(c) Printed matter—
Not exceeding 50grammes 2 pf.
50grammes to 100 " 3 pf.
100 " 250 " 5 pf.
250 " 500 " 10 pf.
500 " 1,000 " 15 pf.
(d) Commercial papers—
Not exceeding 250grammes 5 pf.
250grammes to 500 " 10 pf.
500 " 1,000 " 15 pf.
(e) Samples—
Not exceeding 250grammes 5 pf.
250grammes to 350 " 10 pf.
(f) Mixed packages of (c), (d), and (e)—
Not exceeding 250grammes 5 pf.
250grammes to 500 " 10 pf.
500 " 1,000 " 15 pf.

These rates applied throughout the Imperial postal territory, including
Berlin, which thus for the first time obtained the advantage of local rates;
and in 1902 they were extended to all places which had a post office for
only part of the year, such as small watering-places, summer resorts, and
beauty spots.[571]
The result of the reduced rates was not satisfactory financially. It was not,
of course, possible to calculate with any exactness the actual cost of the
service performed by the Post Office in respect of local traffic; but such
estimates as the administration were able to make tended to show that the
cost exceeded the revenue, and that the local business was therefore
conducted at some loss.[572] Consequently, when in 1906 Imperial
requirements made it necessary to obtain an increased revenue from the
Post Office, the administration placed the burden on the local traffic,

although not without some opposition in the Reichstag. On the 1st July
1906 the rates for local traffic, with the exception of the rate for local
letters, were made the same as the general rates for transmission throughout
the Imperial postal territory.
The rate for letters remained as formerly, 5 pf. for letters not exceeding 250
grammes in weight.[573]

VI

INTERNATIONAL RATES
(I) INTERNATIONAL LETTER POST

The adoption in numerous countries of the principle of uniformity of rate
for inland postal traffic, and the enormous simplification of the system of
rates and of their practical administration which it achieved, led naturally to
an endeavour to effect a like simplification of the rates for postal traffic
exchanged between the various countries. The rates in operation varied
enormously, not only as between different countries, but frequently in
respect of letters passing between the same two countries.[574]
The arrangements for the exchange of such traffic between different
countries had been conducted under conventions and agreements entered
into by the countries immediately concerned, and the rates to be charged
were prescribed by these conventions or agreements. Foreign rates were
often built up by the addition of a rate for the transmission abroad to the
ordinary rate chargeable for the inland transmission. The fact that numerous
rates were chargeable for one and the same letter in respect of its
transmission within the same country thus naturally made the rates charged
for transmission abroad likewise numerous. In many cases there was an
additional variation in the rate of postage between two countries according
as one or other route was followed. And not only were the international
rates of postage high and complicated. The methods employed for
accounting between the countries respectively concerned in regard to the
proceeds of postage on international letters were equally complicated and
burdensome.
In 1850 the necessity for some simplification of the arrangements for the
interchange of correspondence led to the formation of the Austro-German

Postal Union by Prussia and Austria. The chief feature of the arrangement
was the adoption of a common rate of postage for the whole territory of the
Union, moderate in amount, and based on a small number of zones of
distances. The advantages resulting from the Union were soon apparent.
Other German States joined, and within a short time the question of
extending it to foreign countries was mooted. At a Conference held in
Berlin in 1851, a general European Postal Union was adumbrated.
The first definite suggestion for the general re-organization of international
postal traffic on a common basis came, however, from America. In 1863,
Mr. Blair, Postmaster-General of the United States, in a note to the postal
administrations of the world, suggested the assembling of a Congress
representative of all nations for the discussion of the subject. The proposal
was favourably received by fifteen administrations,[575] representing nine-
tenths of the commerce and nineteen-twentieths of the correspondence of
the world. The representatives of these administrations (with the exception
of Ecuador) met at Paris in May 1863.
The Conference was not empowered to enter into any definite arrangement
for the amelioration of the system of international postal traffic. Its function
was simply to discuss and proclaim general principles applicable to the
conduct of the traffic, with a view to their ultimate adoption by the nations
of the world. The discussions centred on the three fundamental questions of
uniformity of weights, uniformity of rate, and simplification of accounting.
[576]
Thirty-one articles of agreement were adopted.[577] These articles
recommended, inter alia, the adoption for ordinary letters of a unit of
weight and a progression of weight of 15 grammes; and for corrected
proofs, samples, and documents not in the nature of a letter, a unit and
progression of 40 grammes. The Conference was convinced that transit
charges were often an invincible obstacle to the establishment of a really
advantageous international system, and recommended that the transit rate
for each country should never exceed half the postage reckoned at the
inland rate of the country traversed, and that for small countries it should be
even less. For sea transit the Conference recommended that in no case
should the charge against an administration in respect of such transport be
greater than the actual charge made on the country of destination by the
shipping agency by whom the mails were conveyed.

Although its conclusions were without the sanction of authority, the
Conference was nevertheless of great assistance to the development of an
international system. It brought into prominence the obstacles in the way of
international postal intercourse, and the difficulties which must be removed
before a common system could be founded. And it formulated general
principles which might with advantage be observed in the making of fresh
agreements between individual countries, and might serve as a basis for a
common agreement. Its conclusions were, as a matter of fact, so used in
numerous instances.
Towards the end of 1868 Dr. von Stephan, of the postal administration of
the North German Union, published in the official journal of the Union a
definite project for a postal union between all civilized nations, and
proposed a discussion of the project at a universal Congress. The proposal
was taken up by the administration of the North German Union. The
diplomatic arrangements for calling a Conference were, however,
interrupted by the Franco-German War of 1870. After the conclusion of
peace, the proposal was again taken up, and the Swiss Government
undertook the task of inviting the administrations of the chief countries to
send representatives to a Congress at Berne. The invitation was readily
accepted, and the Congress met in 1874.
The proposal submitted to the Conference was that the Union should cover
the following categories of postal traffic:—
(1) Letters.
(2) Postcards.
(3) Newspapers and other printed matter.
(4) Samples.
(5) Commercial papers.
Each contracting State should fix its own international rates, under the
limitation that for letters the rate should not exceed 4d., or 40 centimes; and
for newspapers or other printed matter, for samples or commercial papers,
should not be less than 1d., or 10 centimes. There should be no division of
postage, but each State should retain the postage which it collected. Each
State should give liberty of transit, and transit charges should be abolished,
except in the case of extraordinary charges or services.[578]

The proposals which gave rise to most discussion were those for the
establishment of a uniform rate, and for the gratuitous transit of mails
across the territory of intermediate countries. The vast number of rates
actually existing was made an argument in favour of the uniform rate; and a
low rate was recommended on the ground that it was well known that,
although low rates imposed a temporary monetary loss, they were in a
broad view profitable to the finances of the State.[579] It was urged that as
all rates were already tending to equality, the Congress, by establishing
uniformity, would only be advancing by a few years an existing tendency.
The principle of uniformity of rate and of weight was adopted unanimously,
the rate of charge being fixed at 25 centimes, and the unit of weight, and
progression in the scale of weight, at 15 grammes. The rate of charge, 25
centimes (with the reservations[580]), was arrived at by consideration of the
case of the most unfavourably situated country as regards conditions of
transit, viz. a case in which there would be five intermediate countries, and
consequently five transit rates. As most, if not all, of the countries
represented had already adopted inland penny postage, this rate, assuming
10 centimes (or 1d.) to be a reasonable charge for the inland service at both
ends, left 15 centimes (1½d.) to cover the cost of transmission from country
of origin to country of destination; and there was in addition the optional
margin up to 32 centimes which might be taken advantage of, if a charge of
25 centimes was thought by any administration to be too little. A proviso
was added that for all sea transits exceeding 300 nautical miles a surtax not
exceeding half the general rate of the Union might be added to the postage
charge, whether for letters, samples, printed matter, or commercial papers.
A reduced rate for commercial papers, samples of merchandise,
newspapers, books, pamphlets, catalogues, etc., was adopted without
discussion, the delegates no doubt basing their action on the existence of
similar reduced rates in many countries. The minimum rate for such packets
was fixed at 7 centimes, and the unit of weight and the progression of
weight at 50 grammes. The maximum weight for samples was fixed at 250
grammes, and that for other articles at 1,000 grammes. A proposal to
increase the weight for samples was opposed by Dr. von Stephan on the
ground that it would cause practical inconvenience in the post offices.
M. Radoikovitch, the Serbian delegate, proposed a modification of the
progression of rate. He suggested that the packets should be divided into

two categories—those not exceeding 300 grammes, and those over 300
grammes in weight. For the lighter packets he proposed a progression of 50
grammes, and for the heavier packets a greater progression. For the sake of
simplicity it was considered preferable to retain the single progression, and
the proposal, which met with no support, was withdrawn.[581] All packets
(samples, etc.) sent at the lower rate must be sent under band or in open
envelopes, or made up in such a way as to admit of their being easily
examined.[582]
The proposal for gratuity of transit was advanced with a view to
simplification of the administration of the Union. Its adoption would have
made all countries independent, so far as expenses and accounting were
concerned, of intermediate countries, and would have assisted the adoption
of a low rate of postage. It was, however, resolutely opposed by those
countries which, owing to their geographical situation and the means of
communication which they controlled, were called upon to serve as
intermediaries to a special degree. The case of Belgium was of particular
importance. It naturally resulted from her situation that she was called upon
to perform for other countries a transit business much greater than that
performed by other countries for Belgium. The net revenue accruing to the
Belgian administration from this source was very considerable.[583] France
and Italy were in a somewhat similar position, mainly owing to the
transmission of the mails between England and India by the overland route.
France rejected entirely the principle of gratuitous transit.
It was feared that if an administration derived no benefit from transit traffic
it might be led to discourage it, to the detriment of general facilities for the
transmission of mails, and the Congress arrived at the conclusion that some
method of specially remunerating all countries for transit services ought to
be devised. A simple reservation as regards special expenses caused by
transit traffic was objected to on the ground that in most cases the
international traffic was forwarded by the ordinary means and no special
expense was caused—the real causes of Post Office expenses being the
services of despatch and delivery.[584] Indeed, it was contended on this
ground that the transit of international mails could not be regarded as a
service rendered.

Agreement was reached on most of the points raised by the proposals, and a
Convention constituting an International Postal Union, under the title
"L'Union générale des Postes,"[585] was signed on the 9th October 1874, to
become operative on the 1st July 1875. The chief provisions of the
Convention in regard to the rates of postage were as follows:—
(1) The rate of postage for the Union was fixed—
(a) At 25 centimes for single letters, with liberty for each
country, as might be necessary on account of its monetary
system or for other reasons, to fix a higher or lower rate,
provided that such rate was not greater than 32 centimes, and
not less than 20 centimes.
The unit of weight for a single letter was fixed at 15 grammes,
and the scale of progression was by steps of 15 grammes.
(b) For postcards, half the rate for letters.
(c) For printed matter, samples, and commercial papers the unit
rate was fixed at 7 centimes, with liberty for each country to fix
a rate not exceeding 11 centimes or less than 5 centimes.
The unit weight was fixed at 50 grammes, and the progression
of weight was by steps of 50 grammes. The maximum limit of
weight for samples was fixed at 250 grammes, and for printed
matter and commercial papers at 1,000 grammes.[586]
(2) In cases where letters were forwarded by sea for distances
over 300 miles, a surtax not exceeding half the general Union
rate of prepaid postage might be added to the normal rate.
(3) The proposal as to the division of postage was accepted, with
slight amplification.
(4) Transit payments, that is, rates of payment by one
administration to another administration in respect of the
transmission of closed mails over the territory of the second
administration by means which it provided, were fixed at 2 fr.
per kilogramme for mails containing letters and postcards, and

25 centimes per kilogramme for mails containing other articles.
The rates were increased to 4 fr. and to 50 centimes,
respectively, when the distance of transmission exceeded 750
kilometres on the territory of one administration. In the case of
sea transits exceeding 300 nautical miles, the despatching
country was required to pay to the administration which
provided the service, the expenses of the transportation, not
exceeding 6 fr. 50 per kilogramme for letters and 50 centimes
per kilogramme for other articles.
In November 1875 the Indian Post Office administration applied for
admission to the Union. A further Conference at Berne was thereupon
called to consider this request. Representatives of a large majority of the
signatories of the Treaty of 1874 attended the Conference, and other
questions were raised. France, Spain, and Holland asked for the admission
of their respective colonies; Brazil submitted a declaration of adhesion; and
Great Britain intimated that Canada and Newfoundland would submit
applications. The original Union had been limited to the European
countries, Turkey (including Turkey-in-Asia), Russia-in-Asia, Northern
Africa, Egypt, and the United States of America; and these further
developments widened the problem before the Congress. Instead of merely
considering the question of admitting India, it was called upon to face the
possible extension of the Union to the remotest parts of the globe.
The question of transit rates, particularly of transit rates by sea, became
therefore one of very great importance and difficulty, since it was necessary
to fix such rates as would permit of the maintenance of that uniformity and
lowness of the rates of postage which were the fundamental bases of the
Union. On this point there were prolonged and difficult discussions. The
French delegates submitted a proposal for the application of the treaty of
Berne to all quarters of the globe, with a uniform transit rate of 6 fr. 50 per
kilogramme for letters and 50 centimes for printed matter, etc.[587]
The countries which maintained the more important and costly maritime
services were not, however, prepared to submit to the loss of revenue which
the adoption of the proposed transit rates would entail.[588]

Germany submitted a scheme for classifying all countries of the world
outside the Union into four groups with four graduated maritime transit
rates of 6 fr. 50, 25 fr., 40 fr. and 60 fr. per kilogramme, respectively, for
letters, and 50 centimes, 1 fr., 1 fr., and 2 fr. per kilogramme for printed
matter, etc.,[589] a proposal which was opposed as contrary to the
fundamental principle of uniformity, and calculated to give rise to
difficulties and complications. Moreover, the zones, being reckoned as from
Europe, were not applicable as between the distant countries themselves,
e.g. between Mexico and the West Indies.[590]
The Conference was able to arrive at an agreement only as regards the
admission of British India and the French Colonies in Asia, Africa, America
and the Pacific. The entry of these territories was fixed for the 1st July
1876, and the general international rates of postage and transit rates, fixed
under the Convention of 1874, were made applicable to the new territories
of the Union, except that for transit by sea for distances exceeding 300
nautical miles a surtax equal to the full postage rates (32 centimes and 11
centimes) was authorized, instead of a surtax of half rates fixed under the
original treaty; and the transit rates in respect of mails for or from these
territories for distances of more than 300 nautical miles were made 25 fr.
per kilogramme for letters and postcards, and 1 fr. per kilogramme for
printed matter, samples, and commercial papers.
The later Congresses have added numerous services to those provided
under the original scheme, such as, e.g., reply-paid postcards. For the most
part, however, these additional services are of minor importance, and
concern only a small part of the international traffic,[591] the bulk of which
still passes under the main divisions established at the first Congress.
In connection with the rates applied to those classes of the traffic there are
three chief points of importance—the initial charge, the scale of weights,
and the transit rates. The question of modifying the international letter rate,
which had remained unchanged since the foundation of the Union, was
raised at the Washington Congress in 1897. The Austrian delegate proposed,
not indeed that the initial charge should be reduced below 25 centimes, but
that the maximum weight allowed for the single letter should be increased
from 15 grammes to 20 grammes. The British and French delegates
opposed the proposal.[592] The French delegates said it would involve a loss

of more than a million francs to their administration. In some cases, e.g.,
Italy, the raising of the limit would have had the effect of rendering the
international service cheaper than the internal service. In the end the
proposal was rejected.
The subject of transit rates, which had not been seriously considered since
the first Congress, was also raised at the Congress of Washington (1897),
two proposals in regard to it, by Germany and by Austria-Hungary
respectively, being under discussion. In the original project of the Union,
gratuitous transit had been proposed, with the reservation that remuneration
should be paid in cases of special expenses occasioned to an intermediary
by the transit of foreign mails. The new German proposal was for the
abolition of all transit payments except in those cases where, according to
the statistics of the international service, a payment of more than 50,000 fr.
a year was due, and in those cases the actual amount due to be reduced by
25 per cent., or at least by 50,000 fr.; to make the amount payable only by
those countries whose share exceeded 10,000 fr.; and the reduction of the
maritime transit rate from 15 fr. to 10 fr. This proposal was avowedly a step
towards completely gratuitous territorial transit. The Austrian proposal was
for gratuitous transit for all correspondence sent à découvert, and a
reduction of the transit rates for closed mails. Gratuitous transit, to which,
as already stated, the German proposal admittedly tended, was advocated
by the delegates of the South American countries, but was opposed by
several other countries, especially by Belgium, France, and Italy. As at the
first Congress, the delegates of the latter countries called attention to the
great expense to which they were put in providing transport for transit
mails, and rejected altogether the idea of gratuitous transit. In face of this
opposition, the proposals could not be carried in their entirety. The transit
rates were, however, considerably reduced, and simplifications in the
method of ascertaining the amounts payable in respect of transit were
introduced. The land rates were reduced from 2 fr. per kilogramme for
letters and postcards and 25 centimes per kilogramme for other articles, to 1
fr. 90 and to 23¾ centimes for the years 1899 and 1900, to 1 fr. 80 and to
22½ centimes for the years 1901 and 1902, and to 1 fr. 70 and to 21¼
centimes for and after 1903. The maritime transit rates were similarly
reduced. Countries whose expenses for the transit of foreign mails exceeded
the receipts, and those whose combined receipts and expenses for that

purpose did not exceed 5,000 fr. per year, were excused all payment under
this head.
At the next Congress, held at Rome in 1906, the question of reducing the
letter rate and transit rates was again discussed. Proposals to raise the limit
of weight for single letters from 15 grammes to 20 grammes were submitted
by several States. It was pointed out that, although in general sufficient, the
limit of 15 grammes was often exceeded, and frequently the weight of
letters required to be tested, causing inconvenience both to the public and
the postal administrations. The German delegate expressed the opinion that
the public were anticipating some concession, and that as reduction of the
initial rate of 25 centimes was impossible, an increased limit of weight
would no doubt be appreciated.[593] The British delegates pointed out that
the equivalent of 20 grammes in British weight was ⅔ or ¾ ounce, a unit
which would be highly inconvenient and could not be adopted. They would
have accepted a limit of 30 grammes; but in many countries the existing
limit of weight for the initial letter rate in the inland service was 20
grammes, and the introduction of a higher initial weight in the international
service might lead to difficulties in the case of those administrations which
desired to retain the lower limit in the inland service. On these grounds they
inclined to the maintenance of the status quo. The delegates of the United
States, Italy, and Turkey supported the British view. The Italian delegates
pointed out that the result would in effect be to compel those countries in
which the limit was 15 grammes to introduce modifications into their
internal service—a position which it was obviously undesirable for the
Congress to take up. Japan advocated the maintenance of the existing limit,
because the effect of raising it would be to render further reduction of
transit rates still more difficult. In the end the proposal was adopted by
thirteen votes against twelve.[594] Countries using the avoirdupois system
were to regard 1 ounce as the initial weight limit.

Gratuitous transit was still unacceptable to the majority,[595] but both land
and sea charges were reduced. The land transit rates were reduced to 1 fr. 50
per kilogramme for letters and postcards and 20 centimes per kilogramme
for other articles, for distances not exceeding 3,000 kilometres; to 3 fr. per
kilogramme for letters and postcards and 40 centimes per kilogramme for
other articles, for distances between 3,000 and 6,000 kilometres; to 4 fr. 50

per kilogramme for letters and postcards and 60 centimes per kilogramme
for other articles, for distances between 6,000 kilometres and 9,000
kilometres; and to 6 fr. per kilogramme for letters and postcards and 80
centimes per kilogramme for other articles, for distances exceeding 9,000
kilometres.
The sea transit rates were reduced to 1 fr. 50 per kilogramme for letters and
postcards and to 20 centimes for other articles, for distances not exceeding
300 nautical miles; to 4 fr. per kilogramme for letters and postcards and to
50 centimes for other articles, for distances exceeding 300 nautical miles,
between countries of Europe, between parts of Europe, Africa, and Asia on
the Mediterranean and Black Seas, and between Europe and North America;
to 8 fr. per kilogramme for letters and postcards and to 1 fr. for other
articles, for all routes not falling under the above headings.
At this Congress the question of reducing the international letter rate was
raised by Sir J. G. Ward, the Australasian delegate. In 1901 New Zealand
had introduced a universal penny rate for letters, and the financial results of
the change had been regarded as satisfactory. The loss of revenue was some
£80,000 in the first year, reduced to £50,000 in the second. There was an
increase of 35 per cent. in the number of foreign letters posted in the first
year, as compared with an increase of 1.76 per cent. for the last year under
the 2½d. rate.[596]
The proposal met with strong opposition and little support. The opposition
was based entirely on financial considerations, many of the delegates
stating that their administrations were unable to face the sacrifice of
revenue involved. In this connection the term "sacrifice of revenue" means
sacrifice of gross revenue, and not necessarily that the carrying of foreign
letters at a penny would on the whole result in actual loss through the cost
of service being greater than a penny, although it is probable that the cost of
a foreign letter weighing as much as an ounce would be slightly more than a
penny.[597] The proposal was defeated by eighteen votes to three.[598]

(II) INTERNATIONAL PARCEL POST

The Universal Postal Union as at first constituted provided only for the
transmission of what may be regarded in the broad sense as letter post

traffic. It made no provision for the transmission in the international service
of packages of ordinary merchandise. Such packets could in strictness only
be forwarded at the letter rate, which was almost prohibitive; although
frequently they were forwarded at the sample rate, in which case the weight
of the packet was strictly limited. The French administration proposed, in
the project of the Congress of Paris of 1878, to extend in that direction the
facilities provided by the Union, by amplifying the definition of samples to
include small parcels of ordinary goods,[599] a proposal which was rejected
by a majority of the administrations. It was, however, submitted to the
Congress under another form. The German administration proposed, not the
extension of the sample privilege, but the establishment of a new service,
which should provide for the transmission of parcels of general
merchandise not exceeding 3 kilogrammes in weight, the parcels to be
charged a rate of postage sufficient to reimburse the administrations for the
expenses of transmission. Although this proposal was favourably received,
many of the delegates had no power to enter into any arrangement of that
nature. The question was therefore referred to the International Bureau, with
instructions to call a special Conference for its consideration, if on
investigation that course should be found desirable.
At this time the circumstances in the different countries in regard to the
transmission of small parcels varied. In some a service was provided by the
Post Office; in others, the majority, the business was left to the railways or
other forms of commercial transport. In all cases the services between
different countries were regulated by conventions and agreements on such
terms as could be mutually arranged between the contracting parties. In
general the rates of postage were based on the rates for inland transmission
in each of the countries concerned. They were often extremely complicated,
and several administrations had mutually agreed to a uniform rate for
parcels not exceeding 5 kilogrammes in weight.
The suggestion for a special Conference was, in general, well received, and
the Conference met in Paris in 1880. All the countries of Europe (except
Greece), Canada, the United States, Egypt, British India and Persia, were
represented. The fact that in many of the countries the Post Office had not
at that time undertaken the transmission of parcels was a serious obstacle to
the adoption of any sort of general agreement; and on the question of rates
there was divergence of opinion whether the principle of uniformity should

be accepted, and a fairly high maximum limit of weight conceded at a low
uniform rate of postage, in order that the service might be of real advantage
to the public, or whether the rates should be graduated according to scales
of weight and distance.
The original suggestion had been for a limit of 3 kilogrammes, but at the
Conference a proposal for a limit of 5 kilogrammes was submitted. Several
delegates were unable to accept the higher maximum, and the limit
originally proposed was retained.[600] As regards the rates of postage to be
charged there was also diversity of opinion. Some delegates held that the
rate should be so fixed as to avoid the possibility of the service involving an
administration in loss, while others, in view of the public benefits to be
derived from the establishment of the service, were prepared to agree to
rates which might prove insufficient to cover the expenses.[601] Simple
uniform rates were regarded as a cardinal feature of a postal service for
parcels.[602]
After prolonged discussion agreement was finally arrived at, and a
Convention was signed by all the delegates, with the exception of those
representing Great Britain, British India, Holland, and Persia, to be brought
into operation on the 1st October 1881.
Financial considerations were the chief obstacle in the way of the
participation of Great Britain.[603]
The contracting parties undertook to provide a mutual service for the
interchange of parcels not exceeding 3 kilogrammes in weight. Liberty of
transit was guaranteed throughout the territory of each contracting country,
and for transit services the respective countries were to be remunerated as
follows: The administration of the country of origin was required to pay to
the administration of each other country concerned in the transmission, and
to that of the country of destination, 50 centimes for each parcel in respect
of land transit. In cases where a sea transit was involved, the sum of 25
centimes for each parcel was payable on sea routes not exceeding 500
nautical miles; 50 centimes for routes between 500 and 1,000 nautical
miles; 1 fr. for routes between 1,000 and 3,000 nautical miles; 2 fr. for
routes between 3,000 and 6,000 nautical miles; and 3 fr. for all routes
exceeding 6,000 nautical miles. The rate of postage was based on the

foregoing payments, and amounted to as many times 50 centimes as there
might be administrations concerned in the transmission, with the addition of
all rates for sea transit, and with the reservation that each country might
charge an additional 25 centimes (raised in certain cases to 50, to 75
centimes, or to 1 fr.). In addition, the country of destination might charge a
delivery fee of 25 centimes. It was not anticipated that these rates would in
all cases be sufficient to cover the expenses of carrying on the service, but
the general advantages were regarded as adequate compensation for any
monetary sacrifice which might be entailed.[604] Any administration which
did not at that time conduct a parcel post service was authorized to arrange
for the international service to be undertaken on its behalf by railway and
steamship companies.
At the Lisbon Congress in 1886 the maximum limit of weight was raised to
5 kilogrammes, at which point it remains, and special rates were established
for parcels which, on account of their size, shape or fragility, were
inconvenient for transmission.[605] Such parcels, which had previously been
excluded altogether from the service, were now admitted, subject to a rate
of postage 50 per cent. greater than the rate on ordinary parcels.
At the Congress of Washington in 1897, power to charge special rates was
given to the administration of British India, viz. a rate not exceeding 1 fr.
for land transit, a surtax not exceeding 1 fr. 25 on each parcel posted or
delivered in British India, and a scale of rates graduated according to weight
on all parcels posted in British India, provided that the average receipt of
the Indian administration did not exceed 1 fr. 75 for each parcel.[606] The
special transit charge was abandoned at the Rome Congress of 1906.
No changes of importance were made at the Rome Congress of 1906.
Several proposals in regard to the maximum limit of weight were discussed.
The Bulgarian delegates proposed an increase of the maximum to 50
kilogrammes, but the proposal found no support.[607] The Swiss delegate
proposed an increase to 10 kilogrammes. This met with some support; but
in view of the practical difficulties which would have been imposed on
certain administrations in dealing with parcels of so great a weight, the
proposal was negatived.

The Indian delegate proposed the insertion of a provision enabling any
country to charge postage on parcels originating in that country according
to a scale of weights of its own choice, in substitution for the existing single
rate.[608]

The general proposal was rejected,[609] but a clause was added provisionally
according to India the faculty of applying to parcels posted in India a tariff
graduated by weight, provided the mean of the rates was not in excess of
the normal rate of the Union.
The land transit rate remained unchanged, viz. 50 centimes for each country
participating in the territorial transit.
Russia was given power to collect a transit fee of 1 fr. 25 per parcel in
respect of both Russia-in-Europe and Russia-in-Asia, separately; and
Turkey to collect a transit rate of 1 fr. 25 on a parcel sent across Turkey-in-
Asia. Owing to the undeveloped state of the transport services in Persia,
that administration was empowered provisionally to decline the transport of
parcels for and from other countries.
The maritime transit rates were reduced to the following:—

25 centimes for transits not exceeding 500 nautical miles
50 centimes " 500-2,500 " "
1 fr. " 2,500-5,000 " "
1½ fr. " 5,000-8,000 " "
2 fr. " exceeding 8,000 " "

For parcels not exceeding 1 kilogramme the transit rate should in no case
exceed 1 fr.

VII

AN ANALYSIS OF COST
METHOD

The Post Office[610] performs but one service in respect of the ordinary
postage paid on a packet, under whatever rate or regulations the packet is
posted. Whether the packet be a letter, a postcard, a halfpenny packet, a
newspaper packet or a parcel,[611] the service performed in respect of the
ordinary postage is simply to transmit the packet without delay to the place
of its address.[612]
There are, of course, several intermediate stages in the progress of the
packet from the place of posting to the place of delivery. Under the most
favourable circumstances, as in the case of a letter from one small town to
another small town for which there is a direct mail, the packet is handled
two or three times by various officers; and in many cases, as with the letters
from a suburb of one large town to a suburb of another large town, or to a
place in a rural district or vice versâ, as many as ten or twelve times.
Although the character of the service to be performed, viz. transmission to
the place of its address, is identical in every case, the character of the packet
naturally has considerable influence on the nature and cost of handling at
the various stages, and the methods adopted in dealing with the packet. But
the operations are in essence the same, and the chief difference is in the
amount of time occupied and the nature of the office fittings employed.
This variation of cost and method does not correspond with variation in the
rate of postage paid on the packets. Except in the case of parcels, all
distinction on the basis of rates of postage disappears once the sorting office
is reached.

In regard to the chief indoor operations there is, except at the smallest
offices, complete separation between packets sent by parcel post and all
other packets; but parcels are in some cases taken out with other packets for
delivery at the same time and by the same officer. Except in rural districts
they are, however, generally taken out separately for the first morning
delivery, and frequently for the last evening delivery. Speaking broadly,
there is as regards delivery, as for other operations, essential separation
between parcels and all other classes of packets.
In regard to packets other than parcels, the chief, and in many cases the
only, separation in actual handling is as between those packets which can be
passed through the stamping machine and those which cannot; and between
those packets which can conveniently be dealt with at the ordinary letter-
sorting frames, and tied in bundles for enclosure in the mail-bags, and those
which on account of their irregular size and shape are sorted at pigeon-hole
frames, and cannot be tied in bundles, but are forwarded loose in the mail-
bags. The dividing line is almost identical in both cases, and is determined
by the size and shape of the packet. In the largest offices more divisions are
made, in some cases as many as five.[613]
The more usual number is three, "short letters," "long letters," and other
packets.[614] The division of the packets is made in all cases, not with
reference to the various rates of postage under which the packets may have
been posted, but with the view simply of securing that packets of the same
shape and size shall, as far as possible, be brought together, and their
subsequent handling thereby facilitated.
In cases where there are four or five such divisions of the packets, the
separation is likewise made from considerations independent of the rates of
postage, although it happens that, as a rule, a large proportion of the packets
posted under a given rate fall into a certain group. Thus all postcards fall to
be handled with the short letters; all newspapers fall to be handled with the
heavier packets sent at the letter rate; and a large proportion of the
halfpenny packets, viz. the short halfpenny packets, fall to be handled with
the short letters.
There are in general three methods of handling. The sorting is done either at
the ordinary open frames, or at the newspaper frames, or directly into the

mail-bags, the two latter methods being alternative. Short letters are dealt
with at the ordinary sorting frames. Long letters (which include a large
proportion of "circulars") are dealt with in some cases at the ordinary
frames, and in some cases at the frames provided for the larger packets (the
"newspaper" frames). All other packets are dealt with at the newspaper
frames, or are sorted directly into the mail-bags in those cases where frames
for hanging the bags are provided. Stamping is performed either by hand or
by machine.
When first brought into the sorting office the packets are placed on an open
table, and the ordinary letters, circular letters, and postcards are arranged in
order with the addresses in the same direction, or, as it is termed, "faced."
Simultaneously, all other packets are picked out for treatment separately.
The postage labels affixed to the letters and other packets are then
obliterated with a dated stamp. After stamping, the letters and packers are
taken to the respective sorting tables, where they are separated (in one or
more operations) into groups corresponding to the various towns to which
they will be despatched. Before enclosure in the mail-bags, all short letters,
postcards, and short halfpenny packets, and some of the long letters, are tied
in bundles, other packets being sent loose.
From the first office of destination many of the packets are sent forward to
another office, since it is naturally not possible always to enclose a packet
in a direct mail-bag for the town to which it is addressed. These packets are
resorted and despatched. The letters, etc., for immediate delivery do not
require to be faced, as they are received in bundles, in which they are
arranged with the addresses in the same direction. But, except when
received for the first morning delivery, letters are stamped to show the date
and time of receipt, after which they are sorted in the order of delivery, and
delivered by the postmen.
In the delivery of the packets one division is made, viz. between the short
letters, postcards, and short halfpenny packets, which are tied in bundles;
and the letter packets and halfpenny packets of irregular size and shape, and
the newspapers, which are carried loose in the delivery bag. The postman
takes out of his bag a bundle of letters, etc., from which he delivers in order.
These have been sorted up in the order of delivery at the sorting office, so
that no time is lost in finding the proper letter for delivery. It is not possible,