The Development of Rates of Postage: An Historical and Analytical StudySmith, A. D. (Alfred Daniel)
History
The Development of Rates of Postage: An Historical and Analytical Study
Smith, A. D. (Alfred Daniel)
Postal rates
The application of this tariff resulted in many cases in considerable
discrepancies between the amount charged and the service rendered. The
improvements in the manufacture of paper and in the methods of printing,
particularly the introduction of the rotary press, had cheapened the
processes of production, and led to a great expansion of the newspaper
trade. With this expansion came a more than proportionate expansion of
the business of advertising. The result was that, as in England and
America, the newspapers increased in bulk; but so far from there being
a corresponding increase in price, there was in point of fact a very
considerable decrease. Moreover, advertisements became a more important
source of revenue than the subscriptions themselves. A rate of charge
based on the selling price, which might have been reasonable when
newspapers were produced under the old conditions, was totally
inapplicable under the altered circumstances.[384]
The financial results proved extremely unsatisfactory. From the causes
indicated, the average weight of the individual copies of newspapers
continued to increase, while at the same time the price (and with the
price, the postage) continued to decrease.
In 1897 the administration of the Imperial Post Office estimated that
the total cost of the transmission of newspapers by post in Germany, for
staff, post offices, transport, equipment, etc., was 6,178,362 M., or
about 66/100 pf. per copy.[385] The number of newspapers transmitted by
post in Germany was at that time about a thousand millions annually, and
the total postage received in respect of them was less than 5 million
M., or on the average about 1/2 pf. per copy;[386] in the case of a
number of papers the postage was as little as 1/12 pf. per copy.[387]
The annual loss to the administration on account of the newspaper
traffic was therefore on the average 16/100 pf. per copy, or a total of
about 1,600,000 M. a year.
For many years the question was before the Budget Commission of the
Reichstag, and a change soon followed the publication of this estimate.
New rates, based on entirely new principles, were established in 1899.
When the Act establishing the new rates was in preparation, the Imperial
Post Office administration based their proposals mainly on the principle
that the charges should cover the cost of the service rendered.[388] The
original proposals to the Reichstag were accordingly calculated to
secure an increased revenue of 1-1/4 million M. The Budget Commission,
however, so modified the proposals as to reduce this amount to 300,000
M., and further modifications were made in the Reichstag itself, with
the result that under the new rates the administration was left to work
with an even greater loss than formerly.[389]
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