The Development of Rates of Postage Part 4

The reduction resulted in so great a fall in the revenue that in the first year at the reduced rates there was a deficit of between one and two million dollars. In calling attention to this deficit, the President, in his Message to Congress, said that no principle had been more generally acquiesced in by the people than that the Post Office should sustain itself, but Congress had "never sought to make it a source of revenue except for a short period during the last war with Great Britain." At the same time the service should not become a charge on the general Treasury, and it would be necessary either to curtail the existing service or so to modify the Act of the previous March as to improve the revenue. As curtailment of service was out of the question, revision of the rates was recommended.[168]

But the rates were not revised. Revision in an upward direction was, indeed, hardly feasible. The public agitation for low rates continued after the pa.s.sing of the Act of 1845. Many citizens were convinced that the system already adopted in England might be introduced in the United States. The benefits which had resulted in England in the way of commercial, social, and moral betterment were largely dwelt upon. The chief demand was for a uniform rate, which now meant simply the abolition of the increased charge for distances over 300 miles. There was, of course, Sir Rowland Hill's calculation in regard to cost of conveyance, which showed the futility of any attempt to make distance the basis of charge; and the further consideration that the actual cost of transit for each letter sent in a mail varies not in accordance with the distance travelled, but inversely as the number of letters contained in the mail. Moreover, it was not considered just that the letters of the people of the populous Eastern States should be taxed in order to provide unremunerative mail services to the remote and newly settled Western States.[169]

Under the old high rates the revenue had not increased in proportion to the increase of population, but since the reduction of 1845 the increase was so much more rapid that even with the reduced rates the revenue was greater than ever before. The Government preferred rates of postage which were too low to rates which were too high, arguing that in the former case the great ma.s.s of the people would benefit, whilst in the latter case the benefits would extend only to a few.[170] The need for some further reduction was well ill.u.s.trated by the fact that the ordinary charge for transporting a barrel of flour from Detroit to Buffalo was at this time the same as the charge for carrying in the same conveyance a letter weighing half an ounce, viz. 10 cents.

In 1851 an Act reduced to 3 cents the rate of postage on letters not going over 300 miles, with a fourfold charge on Pacific mails, on account of the great expense incurred by the department. It was estimated that the expense of such mails was four times as great as in the case of ordinary mails, but the proposal met with opposition.[171]

In 1863 mail matter was cla.s.sified in three groups: (1) letters, (2) regular printed matter, (3) other miscellaneous matter. The charge for letters (first-cla.s.s mail matter) was made 3 cents a half ounce irrespective of distance. The rate was reduced to 2 cents a half ounce in 1883, in deference to the wish and determination of the public, supported by a very decided vote in Congress. It was antic.i.p.ated that the revenue would not suffer severely, but that, as in the case of the earlier reductions, there would be an increase in the number of letters.

It was also antic.i.p.ated that many letters sent unsealed at 1 cent would be transferred to the sealed post, thus yielding an additional cent. The number of groups or cla.s.ses of mail matter had been increased to four in 1879, and the department was now asked to consider whether by rearranging the third and fourth cla.s.s matter additional revenue could be obtained from such matter in order to diminish the deficiency resulting from the reduction of letter postage. The department was unable to suggest any method for achieving this object; but the contemplated reduction was not delayed. The condition of the Treasury was good, "there being money enough to meet any deficiency, even if it were as large as the maximum ($8,550,000)," estimated on the basis of the number of letters then pa.s.sing by post without allowance for any increase.[172] The actual loss of revenue consequent on the reduction was only $1,660,000. A large stimulus was given to general correspondence, and, as antic.i.p.ated, to the use of the sealed letter in place of postcards or unsealed circulars, whereby the department reaped considerable profit. In 1885 the allowance for weight was raised, and the rate became 2 cents for each ounce or fraction of an ounce.

Since that date the rate has not been changed, although from time to time proposals have been made for a reduction to 1 cent. The public and the department realize that the 2-cent rate is immensely profitable. It not only sustains the service for letters: it enables the department to carry the heavy burden of both the second-cla.s.s matter and the expensive rural delivery service, both of which involve heavy deficits, and still to show only a comparatively small, though fluctuating, deficit.[173] As early as 1890 the question of 1 cent letter postage had attained considerable prominence. Many newspapers were advocating the reduction, and numerous a.s.sociations and conventions had declared for it. The Postmaster-General, Mr. Wanamaker, himself declared that great numbers of the people believed in 1 cent postage and wanted it, and that the existing rate yielded a large profit which would permit of a reduction of letter postage if it could be devoted to that purpose.[174] In 1891 Mr. Wanamaker expressed the view that in time not only would 1 cent postage be successfully demanded, but that the time was not far off; although he himself thought that many other improvements and extensions ought to be provided before such reduction was made, and that it would not be just and fair to the service, upon which much effort had been spent in order to make it self-supporting, to heap upon it a burden of millions from which it could not recover for years.[175]

The question was by no means lost sight of.[176] With the department showing a deficit in most years, pressure could not be brought to bear for a reduction of postage which could only result in throwing a heavy charge on the public Treasury. Should, however, the department succeed in its efforts to obtain a higher rate of charge on second-cla.s.s matter, and such higher charge results as satisfactorily to the revenue as the department antic.i.p.ates, there can be little doubt that reduction of letter postage would soon follow.[177]

LETTER POST IN FRANCE

The Roman posts in France disappeared in the confusion which followed the incursions of the barbarians. Charlemagne repaired the roads to Germany, to Italy, and to Spain, in the early part of the ninth century, and established on them a system of relays; but with the pa.s.sing of the Carlovingian Empire these arrangements fell into decay. The feudal system which arose after the break-up of the Empire was little adapted for the encouragement of posts. Its tendencies were rather towards disintegration and isolation. Although some of the services survived, there was for centuries no general system of posts in France.[178]

During this period the chief means of communication were provided by the monasteries, which maintained regular intercourse between their various establishments scattered throughout France, Spain, Germany, and other countries; by travelling merchants, and by journeymen.

When a regular service of posts was again established in France, it was provided, not by the State, but by the University of Paris, which in the twelfth and thirteenth centuries increased in importance and renown, and attracted large numbers of students from all parts of France, and from foreign countries. In order to provide a means of communication between the students and their homes, the University obtained from the King authority to employ for the purpose messengers, to whom were accorded certain special privileges. Thus, in 1296, the messengers of the University were exempted from payment of tolls, or of fees for entry into towns. At first they travelled on foot, but at a later date on horseback or by carriage. The system developed regularity and rapidity, and in the fourteenth and fifteenth centuries was employed, although without authority, by the public generally.[179]

This service continued until 1720, when the privileges of the University were suppressed, monetary compensation (120,000 fr.) being paid from the revenue of the posts.[180]

An ordinary postal service was re-established by Louis XI in 1464.[181]

Relay stations were set up on the main routes, four leagues apart. At each station four or five horses were provided by the postmasters, who were required to convey the royal despatches without special remuneration. For conducting the royal couriers from stage to stage, however, payment was made at the rate of 10 sous for each stage for every horse.

In 1527 the postmasters were given the exclusive right of furnis.h.i.+ng horses for the use of couriers. In order to provide accommodation for travellers, a system of relays was established in 1597, in addition to the ordinary posts.[182] The stages were fixed at distances varying from twelve to fifteen leagues, and the charge for a horse was 20 sous for each stage. This system was amalgamated with the posts in 1602, and the functions for which the relays had been established were exercised by the posts until after the Revolution. They were definitely abandoned to private enterprise in 1797.

The transmission of ordinary letters for private individuals was not at first contemplated,[183] but it became common for the royal messengers to carry letters for the public. The conveyance of private letters was first definitely provided for by the State in 1576. In that year a special system of messengers was established, whose function was to convey legal doc.u.ments between the Parliament and the inferior courts, and was limited to the period during which Parliament was sitting.

These messengers were required to carry letters for private individuals at the following rates:--

For a single letter 10 deniers For a packet of three or four letters 15 "

For packets of letters weighing an ounce or more 20 "

irrespective of distance.[184]

Under Richelieu the ordinary posts were given a regular organization.

Fixed days of departure and arrival were appointed; offices were established in the towns; and in 1627 the first general table of rates was issued.[185] Previously the rate was fixed mutually between the couriers and the senders or receivers of letters.[186]

For single letters the tariff of 1627 prescribed rates of 2 sous for transmission between Paris and Dijon, and 3 sous for transmission between Paris and Lyons, Paris and Bordeaux, Paris and Toulouse. For letters composed of more than one sheet, but less than 1/2 ounce in weight, the rate varied from 3 to 5 sous; and for larger packets the rate was from 5 to 8 sous per ounce. In 1637 the posts were given the monopoly of the carriage of letters.[187]

In the first years the posts had been a charge on the State, but at about this time they were let at farm, and proved a fruitful and growing source of revenue to the State. By 1672 the annual rent of the farm had risen to 1,700,000 livres, and in 1791, the last year of the farm, the net revenue was about 12,000,000 fr.

A new tariff was established in 1676, as follows:--

---------------------+------------------------------------+----------- Letters Packets.

Distance. Single. With Envelope. Double. Per ounce.

---------------------+---------+----------------+---------+----------- Less than 25 leagues 2 sous 3 sous 4 sous 6 sous From 25 to 60 3 " 4 " 5 " 9 "

" 60 to 80 4 " 5 " 6 " 12 "

Above 80 leagues 5 " 6 " 9 " 15 "

The progression for distance was in decreasing proportion.

In 1703 the rates were raised mainly in order to provide funds to meet the expenses of the wars of Louis XIV. Two reasons were a.s.signed: the necessity for increased revenue, and the necessity for remedying certain defects in the existing rates, in regard to the distances and the progression of weight--the charges should be proportionate to the actual distance traversed by the couriers; and the existing rate of charge for ounce letters was therefore unjust, because it required at least six single letters to make up a weight of 1 ounce.[188]

As a matter of fact, the new rates fixed in 1703 did not vary exactly with distance. The number of zones was doubled, and the distances were reckoned according to the number of stages, and the routes actually followed by the couriers. The charge for a single letter varied from 3 to 10 sous.

These rates remained in force until 1759, when a variety of causes led to a further increase of rates. The Seven Years' War had made an increase of taxation necessary; there had been a depreciation of money, and an increase in the cost of all commodities, which had resulted in an increase of the expenses of conducting the posts. Under the tariff of 1759 the eight zones of 1703 were maintained, and the rate for single letters varied from 4 to 14 sous, with an additional rate of 1 sou for all letters enclosed in an envelope. The principle of charge according to weight was introduced for letters weighing less than 1 ounce, which up to this time had been charged only according to the number of sheets.

Double letters weighing more than 1/4 ounce and less than 1/2 ounce, were rated at 7 sous for the first zone, and for the other zones a "rate 2 sous less than the ordinary rate for double letters." Packets were charged by the ounce, and the rate per ounce was four times that for a single letter. As with the tariff of 1703, distances were calculated according to the route actually followed by the couriers.

No further modification of the rates was made until after the Revolution. The lease of the posts was due to expire on the 31st December 1791, and it was decided that the Legislature should rectify the tariff before the date at which the posts would revert to the State.[189] A rectification was accordingly announced by the decrees of the 17th-22nd August 1791. This revision slightly increased the rates of 1759. The initial rate of 4 sous for single letters circulating within the same _departement_ was retained; the rate for letters circulating in the same _arrondiss.e.m.e.nt_ was fixed at 3 sous; between _departements_ the rate was increased, and varied from 5 to 15 sous, according to distance of transmission; and the number of zones was increased to eleven.[190]

Distances were no longer to be reckoned according to the length of the route actually traversed, but from point to point as the crow flies. The points were not, however, the actual points of posting and of delivery.

In each department a point was fixed upon, and the rate for all letters posted or delivered in the _departement_ was calculated as from that point; so that for a given weight the same rate was payable on all letters exchanged between the same two _departements_. This system, though comprising a very large number of rates, was much simpler than the earlier systems. Any one town or village now had only 82 rates for each step in the scale of rates, whereas under the previous system a special rate must be calculated for every other town or village in France. To a.s.sist the application of this tariff, a map showing the central point fixed upon for each of the 82 _departements_, and the distances from each central point to all others, was prepared and supplied to every post office in France.

The tariff of 1791 also abolished the method of charge according to the number of sheets, and subst.i.tuted the simpler method of charge according to weight alone. The maximum weight for a single letter was fixed at 1/4 ounce, and for heavier letters the rates were--

From 1/4 oz. to 1/2 oz. 1-1/2 times the rate for a single letter " 1/2 " 3/4 " twice "

" 3/4 " 1 " 3 times "

" 1 " 1-1/4 " 4 times "

and so on, the increase being one single rate for each 1/4 ounce increase of weight. The rate for letters circulating within the same town remained 2 sous an ounce.

This tariff continued in operation only for a short period. In these troubled times the public services fell into complete disorder, and the control of the posts by the Government did not prove a success. When in farm the rent had been comparatively large; but under State management, even with the increased rates of 1791, the finances were altogether unsatisfactory. In 1791 there had been a profit of 12 millions. Soon there was a deficit: in 1793 it was found necessary to allow 4 millions in aid. Further increases in the rates followed. In 1795[191] they were made 2 livres 10 sous, 5 livres, 7 livres 10 sous, or 10 livres, according to distance, but, like most other very high postage rates, failed of their purpose. Instead of increasing revenue, they almost destroyed correspondence. Transmission by private means became widespread.[192] Other circ.u.mstances--the general insecurity of the times, and the violation of the secrecy of letters by officers of the Government--contributed to this development. At the end of six months the rates were lowered to 3, 5, 7, and 9 decimes, according to distance, but these rates were still high. The posts were reconst.i.tuted under the Consulate and the Empire, and further minor changes introduced, the object held in view in all these changes being chiefly to secure a revenue sufficient to meet the expenditures of the service.

The last tariff under the old system of charge according to distance was introduced in 1827.[193] The number of zones, which in 1810 had been increased to fourteen, in order to provide for the extended territory resulting from the French conquests, was reduced to eleven. The rates ranged from 20 centimes to 1 fr. 20 for single letters, and the weight limit for a single letter was fixed at 7 grammes. Distances were reckoned as the crow flies. In 1829 a postal service was established in the rural communes, and an additional rate of 1 decime imposed on all letters received or delivered in the communes.[194] This surcharge was abolished in 1846. As in England, the charges imposed on letters sent for considerable distances were exceedingly heavy. The charge on a letter from Paris to Ma.r.s.eilles, weighing 15 grammes, was no less than 2 fr. 20.

Attention was soon directed to Sir Rowland Hill's proposals for the reform of the English system. Before the reform had been introduced in England, the French Government were urged to improve the French service on the lines proposed by Sir Rowland Hill. In July 1839 M. Lherbette, member of the Chamber of Deputies, suggested the introduction of a Government measure, and in this he met with considerable support. The Government, however, contented themselves with remarking that it would be better to await the result of the projected reform in England.

In the following years the question was frequently raised in the French Parliament, on the Budget, or on reports and pet.i.tions, and there was considerable public feeling in favour of the reform. In 1843, 65 _conseils generaux_ presented pet.i.tions in favour of reduced postage. In 1844 M. de St. Priest made a proposal to reduce the number of zones to two, and to fix the rate of postage at 20 centimes for distances up to 40 kilometres, and 30 centimes for greater distances. A parliamentary Commission, appointed to examine this proposal, made an estimate of the actual cost to the Post Office of the transmission of letters, and found that while the cost of a letter going 40 kilometres (postage 20 centimes) was 975 centimes, the cost of a letter going 900 kilometres (postage 1 fr. 20) was 1475 centimes. The Commission reported in favour of a uniform rate of 20 centimes, but the proposal was not adopted.

Other proposals for the introduction of a reformed system were made in February 1846 and January 1848.

It was left to the Republican Government of 1848 to introduce the reform.[195] The National a.s.sembly had under consideration at the same time two propositions for effecting the reform--that of M. de St.

Priest, and that of the Government itself, both proposing a uniform rate of 25 centimes for single letters. These propositions were referred to a parliamentary Commission, of which M. de St. Priest was a member, and the report of the Commission, which recommended the reform, was adopted by the a.s.sembly.

The Government Bill to give effect to the recommendation of the Commission was opposed in the National a.s.sembly, mainly on the ground that the benefit of the reduction of rate would accrue almost entirely to the business and commercial interests and not to the general public; and on the ground that a letter was a parcel, and should be charged like any other parcel, according to its weight and according to the distance transmitted. The Government's justification for the proposal rested chiefly on the moral and social benefits which would result,[196] and they contended that if, as the opposers of the reduction had argued, commercial letters comprised seven-eighths of the total number of letters pa.s.sing by post, such an extraordinary fact itself did not show that advantage from reduced rates would accrue only to business interests. It showed the injustice of the existing rates, and would never have existed if the postage on letters had not been higher in France than in any other country in the world. The Commission had, moreover, made a calculation of the actual cost of conveying and delivering letters, which showed that the average cost per letter was from 10 to 12 centimes.

The Government estimated that the number of letters would double in the first year (i.e. would increase from 55 millions[197] to 110 millions), and the result would therefore be a diminution of 3,125,000 fr., or 6 per cent. of the total receipts. This would represent the total loss, since the Minister of Finance a.s.sured the a.s.sembly that, after the most minute and persistent inquiries, he had received from the postal administration definite statements that no increase in expenses would be caused by the increase in the number of letters--a result explained by the fact that the increase of traffic would be appreciable only in certain large towns; in other places the result would simply be that the postmen would each have a few more letters to carry. Moreover, under the new system the manipulation of correspondence would be much simplified and facilitated.[198]

Frederic Bastiat proposed to the a.s.sembly, as an amendment, a postage of 5 centimes on letters up to 10 grammes, and 1 fr. for packets from 10 to 100 grammes. He said that the transmission of thought, of communications between men, was the very essence of society, from which arose wealth, business, civilization, and taxes themselves. Consequently, to him it appeared an anomaly to place a tax on such communication.[199]

On the economic aspect of the question he contended that a rate of 5 centimes would provide sufficient revenue to meet the expenses of the service.[200]