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
Improvements in the means of communication have naturally had
considerable effect on the development of the Post Office. The
introduction of the stage-coach in the eighteenth century, and of
railways and steamboats in the nineteenth, in turn revolutionized the
methods of general transportation. By these improvements the capacity of
the Post Office was largely increased, and regularity, rapidity, and
increased frequency of service made possible. But such general
improvements, while of the utmost importance as regards the capacity and
character of the Post Office service, can affect the rates of postage
only so far as they affect the cost of transportation of the mails, or,
by largely increasing traffic, enable economies of business on a large
scale to be secured. The stage-coach cheapened the cost of
transportation, but, in England, had no effect on the rates of postage,
because at the time of its introduction the charges were of a purely
fiscal character, and the benefit of cheaper transportation was not
passed on to the users of the Post Office. The effect of the
introduction of the railway has, at any rate as regards letter postage,
not been much greater. Sir Rowland Hill's reform, which standardized
letter postage, was based on the ascertained cost of conveyance of mails
by stage-coach.[634] He found the cost of such conveyance too small to
be taken into account; and the introduction of the railway could not, of
course, improve such a situation.[635]
The ordinary light letter, weighing on the average considerably less
than an ounce, comprises the overwhelming bulk of Post Office traffic,
and the heavier letters occupy a quite subsidiary place. With the growth
of Post Office traffic, and the consequent economies resulting from
business on a large scale, the profits of the Post Office have gradually
increased, but not to such an extent as to admit of the reduction of Sir
Rowland Hill's penny rate without destroying the net revenue. Any
reduction has been limited to the heavier letters.
The penny rate for the ordinary letter, though so moderate, is
considerably in excess of the average cost even of long-distance
letters.[636] Its maintenance, therefore, depends not on economic, but
on general political and financial considerations. The question is, what
general considerations shall be allowed to govern the rate? Shall it be
fixed on the simple basis of cost and revenue, or shall it be fixed at
such a level as to yield a surplus revenue? In other words, is it
thought that the general public advantages which would result from a
reduction of postage to the cost basis would counterbalance the
disadvantages which would result from the loss of public revenue? This
question will, of course, be answered in accordance with the varying
circumstances in the different countries and at different times.[637]
Public-domain text, read in full here on John Shaqi.
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