I THE RATE FOR LETTERS (continued 2)

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 one sheetFor distance not exceeding 80 English miles3d.

Ditto two sheets"6d.

Every pacquet of writs and deeds"12d. per ounce weight.

Every letter not exceeding one sheetAbove distance of 80 English miles4½d.

Ditto two sheets"9d.

Every pacquet of writs and deeds"18d. per ounce.

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 miles1dwt.8gr.

Exceeding 60 miles, not exceeding 100 miles2"0"

Exceeding 100 miles, not exceeding 200 miles2"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 letter10deniers

For a packet of three or four letters15"

For packets of letters weighing an ounce or more20"

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.LettersPackets.

Single.With Envelope.Double.Per ounce.

Less than 25 leagues2sous3sous4sous6sous

From 25 to 603"4"5"9"

From 60 to 804"5"6"12"

Above 80 leagues5"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—

From¼oz. to½oz.1½ timesthe 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 grammes20 centimes

From 7½ grammes to 15 grammes40 centimes

From 15 grammes to 100 grammes1 fr.

Over 100 grammes1 fr. for each 100 grammes, or fraction of 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 grammes25centimes

From 10 to 20 grammes40"

From 20 to 50 grammes70"

Over 50 grammes50"for each 50 grammes, or fraction of 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 grammes25centimes

From 15 to 30 grammes50"

From 30 to 50 grammes75"

Over 50 grammes50"for each 50 grammes, or fraction of 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 grammes10centimes

From 15 to 50 grammes15"

Over 50 grammes5"for each 50 grammes, or fraction of 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 letters34,071,584

On heavy letters4,707,836

On charged letters404,787

On postcards2,569,787

Total41,753,994

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 to2miles1silver groschen

From2miles to4miles1½"

"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—

From⅜ oz.to½oz.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 exceeding1½miles1silver 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:—

Not exceeding 5 miles1silver groschen

From5miles to10miles1½"

"10"15"2"

"15"20"2½"

"20"30"3"

"30"50"4"

"50"100"5"

For each further 100 miles within the Prussian administration6"

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 exceeding⅜oz.1rate (i.e. 1 sgr.)

From⅜oz. to½oz.1½"

"½"¾"2rates

"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 miles1silver groschen

10 miles to 20 miles2"

All other distances3"

For a letter weighing—

From½oz. to 1oz.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]