There is a very material economy of labor to the Department in dealing with letters prepaid by stamp as compared with letters on which the postage is collected in money, as well as a manifest gain to the public, in the increased facilities which prepayment by stamp enables the Post Office to afford for posting and delivering letters so prepaid.

It is gratifying, therefore, to observe that the use of stamps is gradually gaining ground, encouraging as it does the hope that it may be found practicable and expedient ere long to make prepayment by stamp the prevailing rule in Canada, as it has for sometime been in, the United Kingdom, in France, and in the United States.

A reduction in the charge of Book Post Packets when not exceeding 4 oz. in weight, between Canada and the United Kingdom of one-half the former rate has been made.

To facilitate the prepayment of letters passing from Canada to England by the Canadian steamers, a new stamp bearing value of 6 pence sterling, or 7½ pence currency, being the Canadian Packet rate, has been secured and put in circulation.

A new stamp has also been introduced of the value of one halfpenny to serve as the medium for prepaying transient Newspapers.

Moreover, the Department has been led, by the increasing use of Postage Stamps, to take measures for obtaining the Canadian Postage Stamps in sheets perforated in the dividing lines, in the manner adopted in England, to facilitate the separation of a single stamp from the others on a sheet when required for use.

It will thus be seen that the 7½d value, which was recommended three years earlier (at the time the 10d was issued), materialised at last, though there appears to be no official record bearing on the date the new value was placed on sale to the public. The volume dealing with the postage stamps of British North America, published by the Royal Philatelic Society some twenty years ago, gives the date of issue as June 2nd, 1857, though no authority for this statement is given.

The design was adapted from that of the discarded 12d of 1851, the same portrait of Queen Victoria adorning the central oval. The inscribed band around this contains the words CANADA PACKET POSTAGE at the top, and SIX PENCE STERLING at the bottom, the two inscriptions occupying so much space that there was no room for dividing ornaments of any kind. In the upper and lower left hand corners is “6d stg.” and in the right hand corners “7½d cy.” is shown. A word of explanation regarding the use of the word PACKET in the inscription is necessary. This does not refer to any parcel post (indeed, there was no parcel post at that period) as has sometimes been erroneously asserted, but refers to the fast mail steamers of the day which were then known as “packets”. This denomination, as shown by the extract from the Postmaster-General's report printed above, was intended for use on single letters sent to England via the Canadian packets.

This 7½d stamp was, according to Mr. Howes, printed in sheets of 120 arranged in ten horizontal rows of twelve each, each sheet showing the imprint of the manufacturers eight times on the margins as in the case of the values issued previous to 1857. Only one consignment, consisting of 834 sheets (100,800 stamps) was received, and as 17,670 of these were still on hand when the decimal currency was introduced in 1859, a simple calculation will show that the total quantity issued was 82,410 stamps.