.288d. in 1880-1 to .329d. in 1890-1, and .418d. in 1913-14.[96] During the same period the cost of conveyance of postal packets has decreased from .131d. per packet other than a parcel in 1880-1, to .119d. in 1890-1, and .080d. in 1913-14.[97] The total cost of dealing with a postal packet other than a parcel has in recent years shown a small decrease. The cost in 1913-14 has been estimated at .520d.[98]

The gross revenue of the postal services, i.e. excluding telegraphs and telephones, has increased from £7,130,819 in 1880-1 to £9,851,078 in 1890-1, and £21,928,311 in 1913-14. The net revenue from postal services has increased from £2,720,784 in 1880-1 to £3,163,989 in 1890-1, and £6,642,067 in 1913-14. The expansion of net revenue has not kept pace with the increase in the total number of packets passing by post. Since 1880 the total numbers have increased some 3½-fold, and the net revenue some 2½-fold.[99] The relation

between the gross revenue and the total expenditure on the postal services, which in recent years has not shown any large variation, fluctuates in the neighbourhood of 70 per cent.[100]

Note.—On the 1st November 1915, in order to secure increased revenue for war purposes, the inland letter rate was increased to the following:—

For packets not exceeding 1 ounce in weight1d.
For packets between 1 ounce and 2 ounces2d.
For every succeeding 2 ounces½d.

Under the existing abnormal circumstances it is difficult to form a satisfactory estimate of the result of this increase. Numerous contrary forces are in operation. The growth of the Army and the dislocation of private business resulting from the war have had important effects on the number of letters posted. Large numbers of letters are exchanged with men in the Army, but, on the other hand, all letters from troops on active service pass free of postage. It has been estimated that in the first five months the new rates yielded an increased revenue of nearly half a million.—See Postmaster-General's statement, 3rd July 1916 (Parl. Debates (Commons), vol. lxxxiii. cols. 1231-2).


LETTER POST IN CANADA

When Canada came into British hands after the capture of Quebec, no postal arrangements existed in the province. The population numbered only some 60,000, excluding the Indians, and with so small a number spread over so vast a territory it was not to be expected that any Post Office establishment of the ordinary type could be maintained.[101] Very soon, however, the English merchants interested in the Canadian trade urged upon the British Government the necessity for a regular service from New York to Quebec, and in this they were supported by the Governor of the province. The Government instructed the Deputy Postmasters-General in America to take steps for the establishment of the post, and they accordingly proceeded to Quebec. There they met a young Scotsman, Hugh Finlay, who offered to conduct a regular post between Quebec and Montreal, undertaking all risks, for a commission of 20 per cent, on all revenue collected on the post,[102] and, in addition, a monopoly of licensing persons to provide horses and conveyances for the use of travellers—the old monopoly which had existed for so long in England as a source of emolument to the postmasters. Finlay contracted for the conveyance of the mail with a number of men, to whom he made over the exclusive right of furnishing travellers on the route. In addition to this privilege, these men, who were styled maîtres de poste, were remunerated by payment at the rate of 6d. a league (2d. a mile) for providing horses and carriages for the couriers. Between Quebec and Montreal, a distance of 180 miles, there