The political events of the years 1864 and 1866 occasioned far-reaching modifications of the postal service in Germany. After the expulsion of Austria from the German league, Prussia took over the administration of the postal service in the duchies of the Elbe. Prussia had also absorbed the kingdom of Hanover. The territory of the Prussian postal administration was thus largely extended; and in addition the Prince of Thurn and Taxis relinquished in favour of the Crown of Prussia the control which he had exercised over the postal service in eighteen States.[246]

The North-German Union was established in 1867, and the postal arrangements for the whole territory of the Union were unified. Up to this time ten independent postal administrations had existed in this territory,[247] and the rates of these administrations differed in various particulars. The Prussian rates were applied temporarily to all postal traffic passing between the old and new Prussian territories, and the rates of the Union service were applied to traffic passing between the territories forming the North-German Union.

The continuance of these conditions was not consistent with a unified administration of the postal affairs of the whole North-German Union, and a reform of the rates became necessary. Germany was in 1867 almost the only one of the great States of the world which still maintained a scale of rates of postage for letters graduated according to distance. Prussia had already repeatedly endeavoured to introduce the principle of uniformity of rate irrespective of distance which had been adopted by all others, or at least to secure further simplification; but advance in this direction had always been hindered by financial considerations.[248] The political developments now opened the way for a thorough reorganization of the rates, and this was achieved by the law of the 4th November 1867. This law, which took effect from the 1st January 1868, established uniform rates for letters, irrespective of distance, of the following

amounts—1 sgr. (= 10 pf.) for letters not exceeding half an ounce in weight, and 2 sgr. for all letters of greater weight.

After the refounding of the German Empire in 1870, there was fresh legislation in regard to the Post Office.[249] Among other changes, the limit of weight for the single letter was fixed at 15 grammes, and the limit of maximum weight at half a pound. This law also abolished the charge for rural delivery, a long-desired reform which had been frequently urged upon the Reichstag. In order to assist further the interests of residents in the country, it was arranged that on payment of a monthly fee of 5 sgr. letters might be handed to and delivered by the post messenger, in a closed pouch, at places on his route.

The rates established under this law have remained in operation substantially unchanged up to the present time. The most important modification was made in 1900, when the maximum limit of weight of the single letter was raised from 15 to 20 grammes. Under these rates the letter post has developed continuously. In 1872 the total number of letters passing by post within the territory of the Imperial Post Office was 422 millions, and in 1910 the number had increased to 2,026 millions. As in other countries, the letter rate has proved extremely profitable. The net revenue of the Imperial Post Office in 1872 amounted to 4·7 million Marks, and in 1910 to 88 million Marks. In Germany, however, the railways are State-owned, and the Imperial Post Office is not required to pay to the railways a full equivalent for the services performed. The value of the service performed by the railways on behalf of the Post Office for which no charge is made against the Post Office is not definitely known.[250] The newspaper traffic, the parcel post, and the Imperial Telegraph Service are carried on at heavy loss. The Post Office also performs numerous services, such as those in connection with the National Insurance schemes, for which it receives no monetary credit; and there is no doubt that taken by itself the letter traffic

is largely profitable at the existing rates, even when full allowance has been made for all legitimate charges against the service.

Note on Rural Delivery

Until the eighteen-thirties there was no State provision for the letter traffic in country districts. Residents in the country must deliver all their letters at, or fetch them from, the nearest post office, which was done on market-day or by messengers. In 1824 a beginning was made in Prussia by the introduction experimentally of a delivery service at certain post offices. In the following years the number of rural deliverers and the number of posting-boxes in the villages were increased, and a uniform delivery fee (Landbestellgeld) of 1 silver groschen instituted. The delivery fee was abolished on the 1st January 1872 (law of 28th October, 1871). This meant the abandonment of a yearly revenue of 1½ million Marks.