In 1851 postage, which had previously been charged according to the distance the letter was carried, which it was computed averaged 15 cents on each letter, was reduced to a uniform charge of 5 cents per ½ oz., the decrease being equivalent to 2/3 or 66-2/3 per cent. on the former rate. A very considerable reduction was also effected in the rate of postage on newspapers. The increase in the number of letters transmitted through the post, within a year after the reduction of the rate, was 75 per cent. Several improvements, including the introduction of postage stamps, were effected in this year, and the operations of the department greatly extended.
On the 31st March, 1853, the Hon. James Morris was succeeded as Postmaster General by the Hon. Malcolm Cameron. At the latter end of this year and the beginning of the year following the conveyance of the mails was transferred to the Northern Railway between Toronto and Bradford, and to the Great Western Railway between Suspension Bridge and Windsor. The Hon. Malcolm Cameron was succeeded by the Hon. Robert Spence, who assumed charge of the department on the 11th September, 1854. In February, 1855, the money order system was first introduced into Canada. The system was at first confined to 84 post offices: it now embraces within its operations 229 offices. The month of May, 1856, was marked by the first voyage to the St. Lawrence of the line of Canadian Steamers, under contract with Hugh Allan, Esq., of Montreal, for the conveyance of the mails between Quebec and Liverpool in summer, and Portland and Liverpool in winter. In October, 1856, the Grand Trunk Railway, which had previously been completed as far westward as Brockville, was opened from the latter point to Toronto, and, in connection with the Great Western Railway, an unbroken line of postal communication established between Quebec in the east, and Windsor in the west. The following statement of the time occupied in the transit of a letter in winter between Quebec and the principal cities and towns in Western Canada, in 1853 and in 1857, will give some idea of the improvement effected:—
| In 1853. | In 1857. | ||
| Quebec to | Windsor | 10½ days. | 49 hours. |
| " | London | 9 " | 45 " |
| " | Hamilton | 8 " | 42 " |
| " | Niagara | 8 " | 50 " |
| " | Guelph | 9 " | 51 " |
| " | Toronto | 7 " | 40 " |
| " | Cobourg | 6 " | 36 " |
| " | Belleville | 5 " | 34 " |
| " | Kingston | 4 " | 31 " |
| " | Brockville | 3 " | 29 " |
| " | Ottawa | 3 " | 24 " |
In August, 1857, the exemption of postage on newspapers was confined to newspapers transmitted from the office of publication to regular subscribers—all other newspapers being made liable to charge. On the 1st February, 1858, Mr. Spence retired from office, and was succeeded as Postmaster General by the Hon. Sidney Smith. In May, 1857, the Canadian Ocean Steamers, under contract with Mr. Hugh Allan, commenced a weekly service between Quebec and Liverpool in summer, and Portland and Liverpool in winter. These steamers, and the Grand Trunk Railway, between Portland and Quebec on the east, and Detroit on the west, which was completed a few month afterwards, have made Canada one of the great postal as well as commercial highways between Europe and the Western States. Closed mails are now carried under treaties with the several governments with regularity and despatch.
In July, 1859, postage was re-imposed on newspapers sent from the office of publication to regular subscribers. Postage rates were computed in dollars and cents; and letters addressed to any place in Canada, if posted unpaid, were subjected to an additional rate of two cents per half ounce. A large augmentation continued to take place in every department of the post office; the mails carried by the Ocean Steamers, especially, rapidly increased. The four mails of January, 1862, carried 30,000 letters from Canada, and brought 31,000 letters to the Province—a number far beyond the previous average of a mid-winter month. In May, 1862, Mr. Smith resigned his office, and was succeeded by the Hon. M. H. Foley, who now presides over the department.
The following statement will convey some idea of the rapid growth of the postal system in this Province, since the transfer to the control of the Colonial Government, in 1851:—
KEY:
A: No. of Post Offices.
B: Number of miles of Post Route.
C: Number of miles of annual Mail Travel.
D: No. of letters carried by post per annum.
E: Number of Registered Letters.
F: Gross Revenue.
G: Expenditure, exclusive of Railway Mail payments.
| Year. | A | B | C | D | E | F | G |
| 1851 | 601 | 7595 | 2,487,000 | 2,132,000 | |||
| 1852 | 840 | 8618 | 2,930,000 | 3,700,000 | ... | $230,629 | $276,191 |
| 1853 | 1016 | 9122 | 3,430,000 | 4,250,000 | ... | 278,587; | 298,723 |
| 1854 | 1166 | 10,027 | 4,000,000 | 5,100,000 | ... | 320,000 | 361,447 |
| 1855 | 1293 | 11,192 | 4,550,000 | 6,000,000 | ... | 368,166 | 449,726 |
| 1856 | 1375 | 11,839 | 4,800,000 | 7,000,000; | 350,000 | 374,295 | 486,880 |
| 1857 | 1506 | 13,253 | 5,383,000 | 8,500,000 | 450,000 | 462,163 | 522,570 |
| 1858 | 1566 | 13,000 | 5,520,000 | 9,000,000 | 450,000 | 541,153 | 546,374 |
| 1859 | 1638 | 13,871 | 5,604,000 | 8,500,000 | 400,000 | 578,426 | 529,290 |
| 1860 | 1698 | 14,202 | 5,712,000 | 9,000,000 | 480,000 | 658,451 | 534,681 |
| 1861 | 1775 | 14,608 | 5,855,000 | 9,400,000 | 400,000 | 698,888 | 560,132 |