The Postmaster-General accorded me permission to consult the official records at the General Post Office, London, and through this courtesy I have been enabled to include a detailed examination of the economic aspect of the rates in the inland service in this country, and to place in the Appendix copies of some original documents which have not before been printed. Without this permission, which I desire here to acknowledge, it would, indeed, scarcely have been possible to undertake the inquiry. It must be made clear, however, that the work is of entirely private character, and cannot be taken as in any way expressing the views of the British Postal Administration. In 1912, as the holder of the Mitchell Studentship in Economics at the University of London, I visited Ottawa and Washington; in 1913 I visited Paris and the International Bureau at Berne; and in 1914, Berlin. I am much indebted to the various postal administrations visited, to whom, by the courtesy of the Postmaster-General, I carried official letters of introduction in addition to my letters from the University, for facilities to consult official papers relating to the subject of investigation, and for assistance from members of the staff with whom I was brought into contact. The work was all but completed at the outbreak of war, but publication has been unavoidably delayed. The overpowering necessities created by the war have caused Governments again to look to postage for increased revenue. Penny postage itself has been in danger in the country of its origin. Various war increases of postage have already been made, both here and abroad, and brief particulars of the changes in the countries dealt with have been included. Further proposals for increasing the revenue from postage will possibly be made, and I am hopeful that these pages, in which the course of postage is traced, may then be found of service. For the privilege of numerous facilities in connection with my work on the rates in this country I am indebted to Mr. W. G. Gates, Assistant-Secretary to the Post Office; and for assistance in my inquiries abroad I am indebted to Dr. R. M. Coulter, C.M.G., Deputy Postmaster-General, Ottawa, and Mr. William Smith, I.S.O., at the time of my visit Secretary to the Canada Post Office; to Congressman the Hon. David Lewis, of Maryland, and Mr. Joseph Stewart, Second Assistant Postmaster-General, United States Post Office; to M. Vaillé, of the Secrétariat Administratif, Ministry of Posts and Telegraphs, Paris; and to M. Ruffy, Director of the International Bureau, Universal Postal Union, Berne. I am especially indebted to Professor Graham Wallas for valuable suggestions and advice. A. D. SMITH. LONDON SCHOOL OF ECONOMICS, 1917. CONTENTS PAGE PREFACE v