The Development of Rates of Postage Part 5

The Government were not convinced, and maintained their original proposal, which was carried. The new rates were--

Letters not exceeding 7-1/2 grammes 20 centimes From 7-1/2 grammes to 15 grammes 40 "

" 15 " to 100 " 1 fr.

Over 100 grammes 1 fr. for each 100 grammes, or fraction of 100 grammes

The special rates for local letters were continued, viz.--

Letters "de Paris pour Paris" not exceeding 15 grammes, 15 centimes; Letters circulating in the limits of the same post office not exceeding 15 grammes, 10 centimes.

The reform, which took effect on the 1st January 1849, was much less sweeping than the reform of 1840 in England--the initial rate was 20 centimes, corresponding to a twopenny rate--and the results were naturally less striking in France. They were nevertheless quite considerable. The total number of letters posted increased from 113,500,000 in 1848 to 148,600,000 in 1849, an increase of 31 per cent., compared with increase of 122 per cent. in the first year in England.

The gross revenue from letters and other packets fell from 48,816,861 fr. in 1848 to 36,582,009 fr. in 1849, a decrease of 11,234,852 fr. The net revenue fell from 16,960,773 to 6,862,920 fr. Thus there remained a substantial surplus.

Both the gross and net revenue recovered in much less time than in England, as might have been expected, since the falling off had not been nearly so great. Moreover, in 1850, on account of financial stress,[201] the initial uniform rate was raised to 25 centimes, and the rate for letters of from 7-1/2 grammes to 15 grammes, to 50 centimes.

The result of this was a set-back to the total numbers, which were only 148,500,000 in 1850, but an improvement in the gross and net revenue. By 1853 the net revenue had reached 17,176,229 fr., and by 1854 the gross revenue had reached 50,019,801 fr.

In 1854 the initial rate for single letters was again reduced to 20 centimes, and the change was immediately reflected in the total number of letters. In 1852 the number was 167,100,000, and in 1853, 170,400,000, an increase of 2 per cent. In 1854 the number was 195,900,000, an increase of 15 per cent. over the number for 1853.

Minor modifications were made in 1861 and 1862. The next important change followed the war of 1870. It was necessary to increase existing taxes wherever possible, and to impose fresh taxes, in order to meet the heavy charges on the national exchequer resulting from the war. The possibility of obtaining an increased revenue from increased rates of postage was not overlooked. In 1871 the Government presented a Bill for the purpose, solely as a fiscal measure.[202]

New rates as follows were established:--

Letters not exceeding 10 grammes 25 centimes From 10 to 20 grammes 40 "

" 20 to 50 " 70 "

Over 50 grammes 50 " for each 50 grammes, or fraction of 50 grammes

For local letters not exceeding 15 grammes the rate of 15 centimes was continued.

The results of this increase of rates are somewhat difficult to determine with any degree of precision. Other circ.u.mstances affected the number of letters, such as the loss of Alsace-Lorraine (an industrial province), the establishment of postcards in 1873, and the reduced means of the people by reason of increased taxation. The number of letters, which in 1869 was 313,360,723, was in 1872 only 292,466,678, and the figures for 1869 were not regained until 1877. If the numbers are adjusted by reckoning the loss of Alsace-Lorraine to have resulted in a decrease in numbers proportionate to the numbers of its population, that is, one twenty-third of the total population of France, and adding the normal increase of 9 millions a year, the number in 1872 would have been 325 millions, whereas it was in point of fact 292 millions. The reduction was even greater in the following years. In 1873 the total number fell to 285,350,341.

The financial result was no more satisfactory. The revenue in 1869 was 60,989,454 fr. In 1872 it had risen to 72,615,276 fr., an increase of 20 per cent. only, while the rates had been raised 25 per cent. for letters from office to office and 50 per cent. for local letters. In 1873 the yield was less. It was, indeed, little more than would have resulted from the old rates if the normal increase of numbers under those rates had continued, although it may be doubted whether this would have been the case in view of the heavy financial strain imposed by the war of 1870. In any case, the financial result of the increase of rates, which pressed heavily on commercial and social intercourse, was extremely small.[203]

But if the rates were higher in France than in other countries, there were yet some aspects in which the French service was in advance.[204]

Compared with England, for example, the uniform rate covered a much greater extent of territory, and a daily delivery of letters was afforded to every hamlet, and even to every isolated house, throughout that greater territory.[205] This service was provided by a body of 19,010 rural postmen, the number of rural postmen in England at this time being only 6,000. Facilities for the posting of letters were also more extended in France: the number of posting-boxes was 45,000, as compared with some 22,000 in the United Kingdom.[206]

It was always desired to withdraw the increase of 1872 as soon as the financial situation would allow. This course was hastened by the establishment in 1874 of the Universal Postal Union, of which France became a member. The international rate for ordinary letters adopted by the Union was 25 centimes. As a result the internal rates of France were much higher than the rates for letters posted in France for places in other countries of the Union. Such a situation could not continue, and in August 1875 the internal rates were reduced. The new rates were:--

Letters not exceeding 15 grammes 25 centimes From 15 to 30 grammes 50 "

" 30 to 50 " 75 "

Over 50 grammes 50 " for each 50 grammes, or fraction of 50 grammes

The special local rates were retained.

The letter rate still remained comparatively high, and in the following year numerous proposals were put forward in Parliament for a reduction.

In November 1876 the Government proposed the reduction of postage on ordinary letters to 20 centimes, and on postcards to 10 centimes, the special rates for local letters being continued. These proposals were referred to the Budget Commission, who expressed the opinion that the time had arrived for the introduction of complete uniformity of rate,[207] and recommended a uniform initial rate for letters of 15 centimes for 15 grammes, and a uniform rate of 10 centimes for postcards.

Further consideration of the proposals was interrupted by the dissolution of the Chamber. In the next session, M. Caillaux, Minister of Finance, adopted the report of the Commission, and in April 1878 the rate for letters was reduced to 15 centimes for each 15 grammes, or fraction of 15 grammes. The general rate was thus brought to the level of the local rate, which now disappeared.

The results of this reform were eminently satisfactory. The total number of letters, which had during the years 1872 to 1877 increased by only 4,365,412, or some one and one-third per cent. per annum, increased from 318,659,158 in 1877 to 403,853,626 in 1879, or 26 per cent. in two years, and from 1879 to 1889 the rate of increase was 6.6 per cent. per annum. The Government had estimated that the reduction would involve a loss to the revenue of some 15 millions for the first year. The actual loss was 15,323,571 fr.

These figures are figures of gross revenue. The figures for net revenue are less satisfactory, both in character and in the amounts indicated.

Their character is unsatisfactory because the expenses of the postal and telegraph departments were not separate; and the figures for net revenue therefore represent the net revenue on the whole service, both postal and telegraph, and not merely for the postal traffic alone. At this time, however, the telegraph business was small comparatively, and the figures indicate generally the result of the reform. In 1877 the net revenue was 47,706,293 fr. In 1878 it fell to 29,343,953 fr., and in 1879 to 21,084,699 fr., from which date there was a gradual, but steady, recovery. In 1888 it had reached 48,811,146 fr. 25, an amount higher than that of 1877, and in 1889 the net revenue pa.s.sed 53 millions, a sum never before reached in France.[208]

The rate fixed in 1878, although marking a considerable reduction of the previous rate, was felt to be unsatisfactory. One of the princ.i.p.al reasons invoked as justifying the suggestion for a further reduction of the rate, was that the number of letters actually posted in France was much less than the number posted in other countries. This circ.u.mstance was attributed partly to the high initial rate, and partly to the fact that the progression of charge was directly proportionate to the increase of weight. The initial rate was in point of fact much higher than the corresponding rate in other countries. The Press often called attention to the unfavourable position in France in this respect, and developed public opinion strongly in favour of a reduction.

Representations from business houses, chambers of commerce, and _conseils generaux_ were constantly received by Parliament. The question was frequently advanced in the Legislature, and numerous suggestions for legislation were put forward by members. Thus, in 1897 M. Cha.s.saing proposed, among other reforms, the reduction of the letter rate to 10 centimes for each 15 grammes. Although admitting the desirability of granting the boon, the Budget Commission were unable to recommend that course on account of the serious effect on the net revenue which must be antic.i.p.ated.[209]

In 1900 M. Millerand, Minister for Commerce, Industry, Posts, and Telegraphs, in a report to the President,[210] recommended a reduction of the rate on the grounds that it would give satisfaction to the public, and, at the same time, increase appreciably the number of letters transmitted by post. He suggested the following scale:--

Letters not exceeding 15 grammes 10 centimes From 15 to 50 grammes 15 "

Over 50 grammes 5 " for each 50 grammes, or fraction of 50 grammes

Such a reduction would bring the rate of letter postage down to the level of the existing rate for postcards; and M. Millerand regarded the reduction of the latter rate to 5 centimes as an inevitable corollary, and a reform which might safely be made.[211] a.s.suming this further reduction, and applying the proposed reduced rates to the statistics of existing traffic--ignoring both the probable increase of traffic and the increase of expenses which would result from the increase of traffic--it was estimated that the loss to revenue would be--

fr.

On single letters 34,071,584 On heavy letters 4,707,836 On charged letters 404,787 On postcards 2,569,787 ---------- Total 41,753,994

The reduction of revenue would be 35.6 per cent. of the total yield.

The reform of 1878 had entailed an increase of working expenses of about 37 millions (5-1/2 millions of capital cost, and 31-1/2 millions of annual expenses). The increase of traffic from the proposed reform would, however, be 17 per cent. less than the increase after 1878 (because the reduction was five-fifteenths of the rate instead of six-fifteenths as in 1878), and the increase of cost would therefore be proportionately less. Calculated on this basis, the increase was estimated at 31,037,829 fr. (4,920,000 fr. capital expenses and 26,117,829 fr. annual).

In all, therefore, the reduction would involve a loss of revenue of 41,753,994 fr., and an increase of expense of 31,037,829 fr.--a total loss of 72,791,823 fr.[212]

In order as far as possible to replace this loss, M. Millerand proposed to abolish the special tariff for _papiers d'affaires_ and subject them to letter postage, and also to increase the rates on small packets of printed matter, other than newspapers and periodicals.[213] The deficit to be looked for in the first year would then be 16,233,833 fr., and might be estimated to disappear in the eighth year. The gross revenue would recover in the third year. The Government was not, however, prepared to sacrifice the revenue, and the proposal was deferred.

The question still continued to receive attention in the country and in Parliament.[214] At length, in view of the persistent agitation,[215]

the Government in 1906, on the recommendation of the Budget Commission, resolved to face the inevitable loss of revenue and make the reduction.

The result was in many ways satisfactory. The number of packets sent at the letter rate of postage increased very considerably. A large quant.i.ty of traffic was diverted from the cheaper open post to the letter post, in order to obtain the advantage of secrecy, some large business houses sending at the letter rate millions of communications which would, under the old rates, have been sent by the open post. In 1905, before the reduction, the number of packets pa.s.sing by post was 2,371,000,000. In 1907 the number had increased to 2,720,000,000, and in 1908 to 2,802,000,000. The loss of net revenue was nevertheless very great. The gross revenue was diminished by some 12 millions, and the expenses increased by 21-1/2 millions. The net revenue fell from 91,750,000 fr.

in 1905 to 59,750,000 fr. in 1906.

The reduction of 1906 placed France in a position of equality with most other nations as regards the initial rate for letters. Indeed, the French rate was slightly lower than that in several other countries.

Thus, the equivalent of the German and Austrian initial rates was 122 centimes, of the Swedish 138 centimes, and of the English 105 centimes. But as regards the weight allowed for the initial rate, and also as regards the rates for heavier letters, the position was still unsatisfactory. The maximum weight allowed to pa.s.s at the initial rate was 15 grammes, and the rate for a letter of 250 grammes was 1 fr.

70.[216] In Germany the rate for a letter of that weight was 244 centimes, in England 262 centimes, and in Switzerland 10 centimes.

Attention was therefore now directed to a modification of the scale of rates for the heavier letters. The Budget Commissions of 1908 recommended the reform.[217] In their view the unfavourable comparison with other countries in this respect could be justified neither by logic nor by regard to the interests of the Treasury. Logically, a rate of postage ought to be proportionate to the cost of the service performed, and this was far from varying in accordance with the weight of postal packets.[218]

The number of heavy letters was, moreover, small proportionately, and the effect on the Treasury of a reduction of rate for such letters would be slight. Indeed, it was thought an increase of revenue might be antic.i.p.ated, since, in addition to the natural increase resulting from the reduction, there would, as in 1906, be a tendency for many packets sent by the open post to be sent under the advantage of the closed post.

It was urged that the reduction should be accompanied by certain modifications in the minor rates, which would lead to a desirable simplification of rates: the special rate for commercial papers should be abolished, and the general rate for postcards should be made 5 centimes; the whole of the reforms being carried out at the same time, in order that the increases might be seen in their proper relation to the compensating reductions. Otherwise the public might forget the benefits, and resent the increases. The net loss of revenue was estimated at 4 million francs.[219]

The law of the 8th April 1910 increased the unit of weight for letters to 20 grammes. For the heavier letters the rates were: from 20 to 50 grammes, 15 centimes; from 50 to 100 grammes, 20 centimes; and so on, adding 5 centimes for each 50 grammes or fraction of 50 grammes up to the maximum weight allowed, viz. I kilogramme. The special rate for commercial papers over 20 grammes in weight was abolished. The privileged rate was retained for packets weighing not more than 20 grammes, Parliament refusing to agree to its total abolition.

NOTE.--On the 1st January 1917, as a war measure, the general letter rate was raised from 10 centimes to 15 centimes.

LETTER POST IN GERMANY[220]

A system of messengers (_Boten-Anstalten_) existed in Brandenburg as early as the first half of the sixteenth century, and in 1604 a master of the messengers (_Botenmeister_) was appointed, whose duty was to control the sending and receiving of all despatches.[221] The incorporation of Prussia and Cleve in the Mark of Brandenburg rendered necessary the improvement and extension of the messenger service, and in 1614 the Elector John Sigismund appointed twenty-four messengers, who were paid at a fixed rate, according to the length of the route traversed. Thus, for the Strasburg, Cologne, and Dusseldorf routes the payment was 10 thalers, and for the Cracow, Konigsberg, and Mainz routes, 8 thalers. Once a year they were supplied with an outfit of clothing. When not travelling, they were required to report themselves every hour to the _Botenmeister_, and to hold themselves in readiness at all times to set out if necessary without delay. The journeys were made according to set times, and the messengers, who carried both letters and parcels, were provided with a way-bill, on which the times of arrival at and departure from the various points were entered. The _Boten-Anstalten_ really comprised two kinds of undertakings--the so-called _Post-boten_ and the _Landkutschen_. The former were the ordinary messengers; the latter a kind of stage-coach system, which carried both pa.s.sengers and merchandise.[222] The rates of charge were based on the actual length of the journey, and also upon any accidental circ.u.mstance which might have a relation to the question, such as high general prices.[223]

In 1634 a riding post between Coln a. d. Spree and Crossen was established, and shortly afterwards a similar post to Glogau, in order to provide a means of communication between the Government and the Swedish Army. For the same purpose in 1635 a daily messenger service (_Botenpost_) was established from Tangermunde to Berlin, and in 1646 a military post (_Dragonerpost_) was established between Berlin and Osnabruck, in connection with the conference preceding the signing of the Treaty of Westphalia.