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