By this Act a uniform system of Post Office organization was provided for, the ordinary rate of domestic letter postage was reduced from five cents to three cents per half ounce, and the charge on letters sent to and received from the United States was at the same time lowered from ten to six cents per half ounce weight (the latter being the combination of the three cent letter rates of both Countries), and lastly, low rates of postage charge were established for the conveyance of newspapers, periodicals, printed papers, parcels and other miscellaneous matter by Post.
In Nova Scotia and New Brunswick the additional newspaper postage collected under the new Statute, applying equal charges on newspaper matter throughout the Dominion, approximately balanced the loss in the reduction of the letter rates, in fact the collections in Nova Scotia in the first fiscal year after the change in the postage rates, shew a marked improvement on the revenue of the previous year, and there has been a material increase in the number of letters passing by Post in the Maritime Provinces, as well as in Ontario and Quebec.
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Postage stamps of denominations corresponding to the reduced rates of postage authorized by the Post Office Act of 1867, were prepared by the British American Bank Note Co. at Ottawa, and distributed by the Department throughout the Dominion for use on the 1st. April. 1868, from which date the new rates of postage came into operation.
Some statistics are also given which it will not be out of place to quote here for future comparison.
There were 87 new Post Offices established in Ontario and Quebec during the [fiscal] year and 74 Post Offices and Way Offices in New Brunswick and Nova Scotia. On the 1st January, 1869, there were 3638 Post Offices and Way Offices in the Dominion, and also:—
| Miles of Post Route | Letters Annually | Revenue (fiscal year) | |
| Ontario & Quebec | 18,716 | 14,750,000 | $906,663.04 |
| New Brunswick | 3,379 | 1,350,000 | 53,827.80 |
| Nova Scotia | 5,579 | 2,000,000 | 64,219.77 |
| Totals | 27,674 | 18,100,000 | 1,024,710.61 |
The total correspondence passing between the United States and Canada is given as $319,352.53, but with no returns from the Maritime Provinces.
The next year's Report, dated 30th June, 1869, gives the revenue as $973,056, a drop of fifty thousand dollars, due to its being the first complete year since the reduction of the postage rates. The total correspondence with the United States is also given as $227,699.13, the drop having come through the reduction to a 6 cent rate, although the Maritime Provinces were included this time. The Report also notes that "From 1st January, 1870, the Postal rate to the United Kingdom was reduced from 12½ to 6 cents per ½ ounce letter."