In 1900 M. Millerand, Minister for Commerce, Industry, Posts, and Telegraphs, in a report to the President,[210] recommended a reduction of the rate on the grounds that it would give satisfaction to the public, and, at the same time, increase appreciably the number of letters transmitted by post. He suggested the following scale:—
| Letters not exceeding 15 grammes | 10 | centimes | |
| From 15 to 50 grammes | 15 | " | |
| Over 50 grammes | 5 | " | for each 50 grammes, or fraction of 50 grammes |
Such a reduction would bring the rate of letter postage down to the level of the existing rate for postcards; and M. Millerand regarded the reduction of the latter rate to 5 centimes as an inevitable corollary, and a reform which might safely be made.[211] Assuming this further reduction, and applying the proposed reduced rates to the statistics of existing traffic—ignoring both the probable increase of traffic and the increase of expenses which would result from the increase of traffic—it was estimated that the loss to revenue would be—
| fr. | |
|---|---|
| On single letters | 34,071,584 |
| On heavy letters | 4,707,836 |
| On charged letters | 404,787 |
| On postcards | 2,569,787 |
| Total | 41,753,994 |
The reduction of revenue would be 35.6 per cent. of the total yield.
The reform of 1878 had entailed an increase of working expenses of about 37 millions (5½ millions of capital cost, and 31½ millions of annual expenses). The increase of traffic from the proposed reform would, however, be 17 per cent. less than the increase after 1878 (because the reduction was five-fifteenths of the rate instead of six-fifteenths as in 1878), and the increase of cost would therefore be proportionately less. Calculated on this basis, the increase was estimated at 31,037,829 fr. (4,920,000 fr. capital expenses and 26,117,829 fr. annual).
In all, therefore, the reduction would involve a loss of revenue of 41,753,994 fr., and an increase of expense of 31,037,829 fr.—a total loss of 72,791,823 fr.[212]
In order as far as possible to replace this loss, M. Millerand proposed to abolish the special tariff for papiers d'affaires and subject them to letter postage, and also to increase the rates on small packets of printed matter, other than newspapers
and periodicals.[213] The deficit to be looked for in the first year would then be 16,233,833 fr., and might be estimated to disappear in the eighth year. The gross revenue would recover in the third year. The Government was not, however, prepared to sacrifice the revenue, and the proposal was deferred.