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
An important consideration in relation to any proposal for reduction or
increase of the letter rate, or, indeed, of any rate of postage, is, of
course, the probable effect on the volume of traffic. Sir Rowland Hill,
when he put forward his plan, laid stress on the increase in the number
of letters which he anticipated would follow the adoption of his
proposal. Since that time it has become almost an axiom that a reduction
of rate will naturally and inevitably be followed by an increase of the
traffic, more or less considerable, according as the reduction is large
or small. Indeed, some writers have thought that the new postal system
was based on a law of fixed relative proportions between a reduction of
rate and the corresponding result on traffic. In point of fact, Sir
Rowland Hill's estimates were based only partially on the probable
effect of the reduction in stimulating traffic, and rather on the
anticipation that, with a rate reasonably low, all that vast letter
traffic which it was well known was being unlawfully dealt with outside
the Post Office would be attracted to the lawful service. It is probable
that a point of approximate satiety can be reached in the reduction of
postage rates no less than in the reduction of the price of other
commodities. A reduction would then result in only slightly increased
consumption of the commodity--that is, in the case of letters, increase
of the number posted. _Per contra_, a moderate increase of rate would
result in a comparatively small reduction of the number of letters.[638]
But moderate variations of postage on ordinary letters are difficult to
make, since popular charges, such as a penny or halfpenny, while they
offer obvious advantages from many points of view, are not susceptible
of slight modifications.
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