The question still continued to receive attention in the country and in Parliament.[214] At length, in view of the persistent agitation,[215] the Government in 1906, on the recommendation of the Budget Commission, resolved to face the inevitable loss of revenue and make the reduction. The result was in many ways satisfactory. The number of packets sent at the letter rate of postage increased very considerably. A large quantity of traffic was diverted from the cheaper open post to the letter post, in order to obtain the advantage of secrecy, some large business houses sending at the letter rate millions of communications which would, under the old rates, have been sent by the open post. In 1905, before the reduction, the number of packets passing by post was 2,371,000,000. In 1907 the number had increased to 2,720,000,000, and in 1908 to 2,802,000,000. The loss of net revenue was nevertheless very great. The gross revenue was diminished by some 12 millions, and the expenses increased by 21½ millions. The net revenue fell from 91,750,000 fr. in 1905 to 59,750,000 fr. in 1906.
The reduction of 1906 placed France in a position of equality with most other nations as regards the initial rate for
letters. Indeed, the French rate was slightly lower than that in several other countries. Thus, the equivalent of the German and Austrian initial rates was 12·2 centimes, of the Swedish 13·8 centimes, and of the English 10·5 centimes. But as regards the weight allowed for the initial rate, and also as regards the rates for heavier letters, the position was still unsatisfactory. The maximum weight allowed to pass at the initial rate was 15 grammes, and the rate for a letter of 250 grammes was 1 fr. 70.[216] In Germany the rate for a letter of that weight was 24·4 centimes, in England 26·2 centimes, and in Switzerland 10 centimes. Attention was therefore now directed to a modification of the scale of rates for the heavier letters. The Budget Commissions of 1908 recommended the reform.[217] In their view the unfavourable comparison with other countries in this respect could be justified neither by logic nor by regard to the interests of the Treasury. Logically, a rate of postage ought to be proportionate to the cost of the service performed, and this was far from varying in accordance with the weight of postal packets.[218]
The number of heavy letters was, moreover, small proportionately, and the effect on the Treasury of a reduction of rate for such letters would be slight. Indeed, it was thought an increase of revenue might be anticipated, since, in addition to the natural increase resulting from the reduction, there would, as in 1906, be a tendency for many packets sent by the open post to be sent under the advantage of the closed post. It was urged that the reduction should be accompanied
by certain modifications in the minor rates, which would lead to a desirable simplification of rates: the special rate for commercial papers should be abolished, and the general rate for postcards should be made 5 centimes; the whole of the reforms being carried out at the same time, in order that the increases might be seen in their proper relation to the compensating reductions. Otherwise the public might forget the benefits, and resent the increases. The net loss of revenue was estimated at 4 million francs.[219]
The law of the 8th April 1910 increased the unit of weight for letters to 20 grammes. For the heavier letters the rates were: from 20 to 50 grammes, 15 centimes; from 50 to 100 grammes, 20 centimes; and so on, adding 5 centimes for each 50 grammes or fraction of 50 grammes up to the maximum weight allowed, viz. I kilogramme. The special rate for commercial papers over 20 grammes in weight was abolished. The privileged rate was retained for packets weighing not more than 20 grammes, Parliament refusing to agree to its total abolition.
Note.—On the 1st January 1917, as a war measure, the general letter rate was raised from 10 centimes to 15 centimes.