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 | " | |
| From 30 to 50 grammes | 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 passed 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 principal 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 circumstance 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 généraux 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. Chassaing 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 anticipated.[209]