The first proposal for a postal establishment in the American colonies came from New England in 1638. The reason given was that a post office was "so useful and absolutely necessary."[148] Nothing was done by the home government until fifty years later when a proclamation was issued, ordering letter offices to be settled in convenient places on the North American continent. Rates were established for the continental colonies and Jamaica.[149] In 1691, acting upon a report of the Governors of the Post-Office, the Lords of Trade and Plantations granted a patent to Thomas Neale to establish post offices in North America. About the same time an act was passed by the Colony of Massachusetts appointing Andrew Hamilton Postmaster-General. The Lords of Trade and Plantations called attention to the fact that this act was not subject to the patent granted to Neale. Matters were adjusted by Neale himself, who appointed Hamilton his deputy in North America.[150] In 1699 a report was made by Cotton and Frankland to the Lords of the Treasury based on a memorial from Neale and Hamilton. The latter had established a regular weekly post between Boston and New York and from New York to Newcastle in Pennsylvania. The receipts had increased every year and now covered all expenses except Hamilton's own salary, £200. Postmasters had been appointed in New York and Philadelphia, Hamilton himself being in Boston. The New York postmaster received a salary of £20 with an additional £90 for carrying the mail half-way to Boston. The Philadelphia postmaster was paid £10 a year.[151] [148] _Cal. S. P. D._, 1574-1660, p. 273. [149] Joyce, pp. 196, 300. [150] _Cal. S. P. Am. and W. I._, 1693-96, p. 637. [151] _Cal. T. P._, 1697-1702, lx, 77. The business of the Post Office was rapidly increasing. The same decade that saw the establishment of the Board of Trade witnessed also the organization of the Colonial Post. The expansion of English commerce[152] necessarily reacted on communications both internal and foreign, while the linking of the country posts with the general system and the stimulus given by the London Penny Post showed itself in the increased postal revenue.[153] The way was prepared for the great expansion of the following century, an expansion turned to account as a source of taxation. [152] Macpherson, _Annals of Commerce_, ii, 707. [153] See Appendix: Tables I, II. CHAPTER III THE POSTAL ESTABLISHMENT AN INSTRUMENT OF TAXATION 1711-1840