The rates established in the other colonies were similar but not identical.
The new postal service under the authority of the patent was commenced on the 1st May 1693. A post was set up from Portsmouth, New Hampshire, to Boston, Saybrook, New York, Philadelphia, Maryland, and Virginia. Five stages were fixed, and a rider was appointed to each stage. In summer the service was performed weekly, and in winter fortnightly. At the commencement, as may be readily understood, the conditions were somewhat difficult.[140] But with the growth of population and commerce, conditions improved. The service to the South was for many years subject to general irregularity and temporary suspension, especially at times of flood.
The Post Office in America has from its first establishment as a general system, as distinguished from the merely local or municipal posts, had to reckon with two factors which have been of great importance in relation to all the main services—a vast extent of territory and a sparse population. The rates were higher than those in operation in England,
but at first, and for many years, the revenue was insufficient to defray the expenses. The finance of the American Post Office consequently differed fundamentally from that of the English office.
Neale was required by the terms of his patent to render an account at the end of three years of the receipts and expenditures of the American post. His first account was not, however, rendered until 1698. It showed that the expenses up to May 1697 were £3,817, and the receipts £1,457, there being thus a loss of £2,360. The account was accompanied by a statement prepared by Hamilton, explaining the great advantages to the trade and commerce of the colonies, as well as to their security, which the Post Office provided; showing how necessary in consequence was the continuance of the office, and recommending that definite rates of postage for the whole territory be fixed by statute. Other regulations for the conduct of the system were also suggested, as the existing arrangement, involving such serious loss to the patentee, could not be continued indefinitely. Neale contented himself with a brief remark to the effect that whenever his Majesty should see fit to take the conduct of the posts into his own hands, he (Neale) would be glad to surrender his patent—of course, for a consideration.[141]
The Postmasters-General opposed the suggested increase of rates on general grounds, their experience having taught them that "the easy and cheap corresponding doth encourage people to write letters, and that this revenue was but little in proportion to what it is now, till the postage of letters was reduced from sixpence to threepence."
Neale died shortly afterwards, and his rights in the patent were transferred to his creditors, who were Hamilton himself and an Englishman named West. Hamilton died in 1703, and his widow carried on the posts for some two or three years. In 1706 she and West endeavoured to obtain an extension of the term of the patent; so that, although the posts had been conducted for some years at heavy loss, both by Hamilton and by his widow, the conditions had improved, and there was now reasonable anticipation of a profit from the office. The view of the Postmasters-General, however,
ultimately prevailed, and in 1707 the patent was bought back for the Crown for the sum of £1,664. When, a few years later, a general Act of Parliament was found necessary, the opportunity was taken to place the American posts on a definite statutory footing.[142]
The preamble recites that posts had at great charges been established on the mainland of North America through most of her Majesty's plantations and colonies, and the Postmasters-General were authorized to establish a "Chief Letter Office" in New York, and other chief offices at some convenient place or places in each of the colonies in America, and to appoint deputies for the "better managing, ordering, collecting, and improving the Revenue" granted by the Act. Rates for the transmission of letters between England and America were fixed, and detailed rates for transmission between specific towns within the North American colonies. The rates between London and America were 1s. for a single letter, 2s. for a double letter, and so on. For transmission within the colonies the rates were, broadly, for distances under 60 miles, 4d. the single letter, 8d. the double letter, and so on; distances under 100 miles, for a single letter 6d., and so in proportion for double and treble and ounce letters.
These rates were, in general, higher than those which had been fixed by the colonies under the Neale patent, but for several years they did not produce sufficient revenue to meet expenses. In 1722 the Postmasters-General were for the first time able to say that in the future the Post Office in North America, even if it yielded no net revenue, would no longer involve a charge, and there was a good prospect of a profit. The Act of 1765 provided rates for the longer distances and made a general reduction of nearly 30 per cent. The rates now became, for a single letter, for conveyance for any distance not exceeding 60 miles, 4d.; from 60 to 100 miles, 6d.; from 100 to 200 miles, 8d.; for each additional 100 miles, 2d.[143] In the intervening period the chief events had been the appointment of Benjamin Franklin, in 1737, to be Postmaster of Philadelphia, and in 1753, to be joint Postmaster-General for