POSSIBLE LOSS OF REVENUE.
Here I am reminded of the possible loss of revenue, and this is set up as an insuperable barrier; but I confess, that, when I regard the infinite good from this reform, I am little concerned by any such prospect. Better any possible loss of revenue than the postponement of such a good. Nobody can say positively what the loss will be. It is only an estimate, or, if you please, a guess. Some may make it high, others low. According to the last Reports of the Postmaster-General, the actual deficiency, with the rate of three cents, was $5,353,620, and the estimated deficiency for 1870 is $7,440,413; but in both cases the expenditures are swollen by illegitimate and extrinsic charges on the Post-Office properly belonging to the Treasury. For 1871, with the rate at three cents, the estimated expenditures, swollen by the illegitimate and extrinsic charges, are $25,581,093, with receipts, $20,178,961, leaving a deficiency of $5,402,132.[108]
Making the estimate for 1871 with the rate of one cent, and assuming an increase in correspondence at only one hundred per cent., there would be a deficiency of $12,128,452, from which should be deducted the illegitimate and extrinsic charges properly belonging to the Treasury. Considering these for one moment, you will see how small the deficiency will be; and here I follow the last Report of the Postmaster-General, who does not hesitate to estimate the proportion of free matter in the mails at twenty-five per cent. of the whole, so that, according to him, “it will appear that the Government is bound in honor and justice to appropriate $5,000,000, instead of $700,000 [the present appropriation], for this service.”[109] But with the abolition of the franking system all this postal matter will pay the ordinary rate, and thus contribute to the postal service. Deduct also another sum for the expenditures of outlying routes, justly chargeable upon the Treasury, like the existing franking system.
Such is the whole case as to any possible loss of revenue, which I state with entire frankness; but I cannot doubt that a short period would witness a change, while the people entered into the enjoyment of their great possession. Letters would daily multiply, and the revenue would bear witness to the increase.