Note 755 — APPENDIXES
Reading edition
"Regarded as a tax diffused over the whole community, it is on the whole defensible, though the tendency to insist that the postal profits shall be devoted to improving the service is already becoming more pronounced."—C. F. Bastable, op. cit., p. 575.
"The Post Office, therefore, is at present one of the best sources from which this country derives its revenue. But a postage much exceeding what would be paid for the same service in a system of freedom is not a desirable tax. Its chief weight falls on letters of business, and increases the expense of mercantile relations between distant places. It is like an attempt to raise a large revenue by heavy tolls: it obstructs all operations by which goods are conveyed from place to place, and discourages the production of commodities in one place for consumption in another; which is not only in itself one of the greatest sources of economy of labour, but is a necessary condition of almost all improvements in production and one of the strongest stimulants to industry and promoters of civilization."—J. S. Mill, Principles of Political Economy, London, 1871, vol. ii. p. 462.
"It may happen (quite acceptably) that a surplus comes in from an undertaking which is primarily carried on for administrative purposes alone. A striking instance of this is afforded by the letter post. If the administrative purpose in question admitted of no aim beyond the covering of its own expenses, such a surplus would have no meaning, or at any rate no other meaning than that of a surplus in the hands of a consumers' club, which is returned to the members, on the closing of the accounts for the year, in the proportion in which they have contributed to it. The fact that the postal service not only retains any such surplus but even (with due regard to its primarily administrative function) consciously seeks it, is to be explained on the ground that, without hindrance to the administrative function, the different abilities of the citizens to contribute to public purposes may be drawn on by this means, with desirable results which are not attainable in any other way."—G. Cohn, op. cit., p. 94. Cf. The Development of the Post Office, Fabian Research Department, London, 1916, pp. 43-7.