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
In 1898 a Bill for modifying rates of postage was introduced. The main
propositions of the Bill were (1) to reduce the letter rate to 2 cents
per ounce, and (2) to impose a postage on newspapers. Since 1867 there
had been several changes in newspaper postage, and for about nineteen
years newspapers had been passing through the post in Canada free of any
charge for postage.[131] The postal service was at this time being
carried on at some loss to the general Dominion revenue, and, as in
1867, the proposal to charge postage on newspapers was made to
counterbalance any loss of revenue which might result from the reduction
in the letter rate of postage. It was hoped that with this
counterbalance any such loss would soon be made good, and that, indeed,
the Post Office would become a self-sustaining department.[132]
The arguments in Parliament were almost identical with those of 1867,
when the previous similar proposals as regards the letter and newspaper
rates were before it. Stress was, however, now laid on the contention
that letter-writing was the pursuit of the wealthy, and of business and
commercial men, who were well able to pay for their correspondence,
while the newspapers were sent mainly to the farmers of the country, who
wrote few letters. The Government were proposing at this time to raise a
million dollars by a tax on sugar, a course denounced as an imposition
by the Government on the poorer classes, to whom sugar is a necessity,
while the reduction of postage would present the wealthier classes with
some $650,000 a year.[133]
The reduction was carried, and the 2-cent rate has proved successful.
The gross revenue recovered within four years.[134] The number of
letters has largely increased, especially in recent years, largely, no
doubt, in consequence of the growing commercial prosperity. The total
number, which in 1876 was some 41 millions, had in 1913 increased to 633
millions. The financial result has also proved satisfactory. The Post
Office service in Canada as a whole in 1913 showed a profit of some
$1,200,000, and there is no doubt that the greater part of this profit
was derived from letters.
NOTE.--In 1915 a war-tax of 1/2-d. was imposed on all letters and
postcards. On the assumption that the numbers posted would not be
appreciably diminished, the increase of revenue was estimated at
$6,000,000 a year, and this estimate has been realized.
* * * * *
LETTER POST IN THE UNITED STATES OF AMERICA
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