Among the numerous changes which have characterized the development of the Post Office since 1840 are the successive reductions in rates; the transfer of the packet boats from the Admiralty, followed by the resolution of the Government to revert to the old principle of depending upon private enterprise for the sea carriage of the mails; the extension in the use of the railways as a medium of conveyance; the establishment of a parcel post; and the decision of the government to provide banking and assurance facilities for the thrifty person of small means. But the greatest departure in the field of the department's activities has been the acquisition of the telegraphic system of the Kingdom. Misled by their advisers as to the capital cost and induced by popular pressure to abandon strictly business methods of administration and extension, the telegraphic experiments of the department have not been a financial success. Not only has this been the case, but, in their efforts to protect the revenue, successive Governments have hindered the development of telephonic communication. At this late date we can safely assume that in 1870 the department should either have granted the telephone companies far greater powers or should themselves have assumed the burden of providing an adequate system of telephonic communication. In 1911, the property and franchises of the telephone companies will pass to the control of the Government, thus vastly increasing the work of the department if, as seems probable, the Government should assume direct management, and greatly enlarging the number of dissatisfied members of that part of the civil service under the control of the Post Office. APPENDIX EXPENDITURE AND REVENUE TABLES TABLE I GROSS PRODUCT, EXPENDITURE, AND NET PRODUCT OF THE POST OFFICE OF THE UNITED KINGDOM FROM MARCH 25, 1723 TO APRIL 5, 1797