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 Postmaster-General has twice exercised his right of revising the
rates of postage, and in each case the rates were lowered. The companies
have not exercised their right to ask for a revision of the terms of
their remuneration, and the provisions of the Act therefore continue in
operation. In the first complete year of the service (1884-5) the number
of parcels conveyed was some 23 millions. The increase in the traffic
has been large and constant. In 1912-13 the total number of parcels
exceeded 130 millions.
The service affords a great public convenience, and the simplicity of
its rates is an undoubted boon. The uniform rate has, however, proved
unsatisfactory in some respects. At all points at which the traffic
would be profitable, the Post Office is open to the competition of
private enterprise; but for that part of the traffic for which the
uniform rate must inevitably be unprofitable (unless it be fixed so high
as to be exorbitant for short-distance and average-distance traffic)
there will naturally be no competition. The number of local, or
short-distance, parcels is consequently small, and the number of parcels
sent for long distances, to remote places, is comparatively large. No
great use is, however, made of the post for the transmission of parcels
of agricultural produce from rural districts. There is a moderate
traffic in butter and eggs from Ireland to England, and in cream from
the West of England. Proposals for the introduction of a specially low
rate for agricultural products have frequently been considered, but
there are obvious objections to the establishment of a special rate for
a special class of traffic. Moreover, for parcels from country districts
the present uniform rate is often ludicrously low. The cost of preparing
and packing each separate small consignment for transmission by post is,
however, considerable, and only the affluent are able to indulge in that
method of obtaining food supplies.[410] The exceptional character of the
Post Office traffic in parcels, and the small degree in which the rates
of charge measure the utility of the service of transportation which
they cover, are well illustrated by the statistics of the traffic, which
indicate that the total numbers are unaffected by fluctuations in
general trade, and that the reductions of the rates which have been made
since the establishment of the service have had no appreciable effect on
the volume of traffic.[411] The actual rates for the heavier parcels are
probably more profitable than the rates for light parcels, since the
principle of degression is not much recognized in the scale of rates.
This view is confirmed by the fact that the post is little used for
heavy parcels, the average weight of a post parcel being no more than
2·8 pounds. It is, as a matter of fact, not improbable that the parcel
post service as a whole is conducted at heavy loss.[412]
Public-domain text, read in full here on John Shaqi.
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