From the above quotations we see that the new Act made prepayment of letters by stamps obligatory, and imposed a fine of double the deficiency if insufficiently prepaid; that the unlimited weight of drop letters was restricted to ½ oz. per rate; that newspapers and periodicals were classed together and publishers given the low rate of 1 cent per pound; that the rate of 2 cents

on transient newspapers was reduced to ½ cent per ounce, and 1 cent up to four ounces; etc.

The Report of 1875 further informs us that the free delivery of letters by carrier had been commenced in the following cities on the dates given:—

Montreal1st October,1874.
Toronto1st March,1875.
Quebec1st April,"
Ottawa1st May,"
Hamilton1st   ""
St. John, N.B.1st   ""
Halifax, N.S.1st July,"

Previous to the above dates a charge (in addition to the ordinary postage) of two cents on each letter received by mail, of one cent on each letter posted in the city, and of one cent on each newspaper, was collected by the letter-carrier on delivery of the same. Halifax was an exception, as letters and papers sent out for delivery by letter-carrier had been delivered without extra charge since 1851.

The British American Bank Note Co. was paid for

Engraving and printing postage stamps for Post Office Department, $22,675.50.

The Report of 1876 contains no special items not already noted, but that of 1877 states that the letter rate of postage with Newfoundland had been reduced from 6 cents to 5 cents per ½ oz., and the same rate had been obtained with Germany from 1st April, 1877.

The Report of 1878 announces the admission of Canada into the Universal Postal Union from the 1st July, as we have already detailed.[113] The Report of 1879 says: "A reduction has been made, from the 1st September last, in the postage rate on closed parcels sent by post within the Dominion, from 12½ cents per 8 oz. of weight to 6 cents per 4 oz. Under this change small parcels not exceeding 4 ounces in weight are admitted to pass for 6 cents instead of 12½ cents as before." This sounded the death knell of the 12½ cent stamp, which dropped in the number issued to postmasters from 84,150 in 1879 to 13,400 in 1880 and 4950 in 1881. It was issued in decreasing numbers down to 1888, when it disappears from the accounts.

Nothing further of importance transpired until 1881, when a supple