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 passing 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 mass 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 illustrated 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 classified in three groups: (1) letters, (2) regular printed matter, (3) other miscellaneous matter. The charge for letters (first-class 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 anticipated 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 anticipated 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 classes 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 class 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 passing 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 anticipated, 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-class 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 associations 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-class matter, and such higher charge results as satisfactorily to the revenue as the department anticipates, there can be little doubt that reduction of letter postage would soon follow.[177]