Promising as the prospect was on the whole, Neale's receipts from the posts fell far short of his expenses in erecting and maintaining them. His expenses up to May 1697 were £3817, and his receipts £1457, leaving him not only out of pocket to the amount of £2360, but with his means and his credit exhausted. It was admitted on all hands that the posts must before long become self-supporting, even if they should not prove remunerative. But meanwhile how were they to be carried on? Hamilton had his own plan to propose. This was first that within America the postage rates should be raised, and "that the post and his horse should go fferry-free"; and second, that between England and America rates should be settled, and that shipmasters should be required on the other as on this side of the Atlantic to take their letters at once to the Post Office of the port at which they first touched, and hand them to the postmaster, receiving as remuneration one penny a letter.
For inland letters the increased rates which Hamilton proposed were as follows, all but the first two entries being in his own words:—
| Pence. | |
| Where the distance from New York does not exceed 80 miles | 6 |
| Where it exceeds 80, and does not exceed 150 miles | 9 |
| To and from Boston and New York, 300 miles | 12 |
| To and from Boston and Jersey, 370 miles | 18 |
| To and from Boston and Philadelphia, 390 miles | 20 |
| To and from Boston and Annapolis in Maryland, 550 miles | 36 |
| To and from Boston and James Towne in Virginia, 680 miles | 42 |
| To and from New York and Annapolis, 250 miles | 24 |
| To and from New York and James Towne, 380 miles, and many | |
| broad and dangerous bays and rivers to be ferryed over | 30 |
It may surprise our readers to learn that between England and America there actually existed, 200 years ago, what now is little more than the dream of the postal reformer,—an ocean penny postage. Yet such is the fact. In 1698 it was the custom of the masters of ships bound for America to hang up bags in coffee-houses, and any letters that might be dropped into these bags they carried, and were glad to carry, over for one penny or twopence a letter, according as it was a single or a double one. This custom, as Hamilton pointed out, was liable to abuse. In the first place, any one who had put a letter into a coffee-house bag might, under pretence of wanting his own letter back, possess himself of the letter of somebody else. And secondly, on arrival in America, the shipmasters being under no obligation to make a prompt delivery, were apt to deliver the letters, not when they reached a port, but when they were on the point of leaving it, and after they had disposed of their lading. All this would be remedied if rates of postage were settled between England and America. The letters would then be in the custody of the Post Office until delivered to the shipmaster, and the shipmaster would be bound to restore them to the same custody as soon as he arrived at his destination.
But Hamilton's main argument in favour of establishing sea-rates of postage was the impossibility of things remaining as they were. Neale was without resources, and the posts were not self-supporting. Unless, therefore, some means should be devised for increasing the receipts, the posts must be given up. Let sea-rates be imposed, and the receipts would be increased at once, for all letters from Europe, which on arrival in America were now being delivered by private hand, would then fall into the post, and be forced to pay American postage. It was true that between the mother country and her colonies a packet service did not exist, and that to impose a charge where no service was rendered in return would be contrary to Post Office usage; but the object to be gained was too important to allow this consideration to prevail. Such were the arguments by which Hamilton supported his proposal that on letters between England and America postage should be charged—of 6d. for a single letter, 1s. for a double letter, and 1s. 6d. for "a packet."
There were one or two points on which Cotton and Frankland did not agree with Hamilton. Experience had taught them, as they stated on another occasion, that the way to improve the Post Office revenue was to "make the intercourse of letters easy to people." So now, in their representation to the Treasury, they condemned the inland rates which Hamilton proposed as altogether too high. They had been long enough at the Post Office, they said, to know that "the easy and cheap corresponding doth encourage people to write letters, and that this revenue was but little in proportion to what it is now till the postage of letters was reduced from 6d.[33] to 3d."
Hamilton had contemplated the passing of a fresh Act of Parliament in order to impose sea-rates and to oblige shipmasters to give up their letters as soon as they reached port. Cotton and Frankland were not satisfied that a fresh Act of Parliament was necessary; nor did they express any opinion as to the particular rates which should be imposed. They recommended, however, the appointment of an officer whose duty it should be "to take care of" all letters for America, and to put them into a special bag to be sealed with the office seal. Public notice should at the same time be given prohibiting the collection of such letters by other persons. To the shipmaster to whom the bag might be delivered the inducement to take it without delay to the Post Office of the port at which he should first arrive would be that he would there receive one penny for each letter the bag might contain. Hitherto, under the coffee-house arrangement, the penny had been paid in England; for the future, it would be paid in America. In other words, the shipmaster, instead of receiving his recompense in advance, would receive it after his work was done and only provided it was done properly.
On one point the postmasters-general held a decided opinion. Towards the support of the posts the Government of New York had made an annual contribution of £50, in consideration of which the Government letters appear to have been carried free; but otherwise Neale's undertaking had not received from the authorities that countenance and support which, in Cotton and Frankland's opinion, were essential to its success. They expressed themselves convinced that, for want of due encouragement, the posts would never prosper in private hands, and recommended that they should be transferred to the Crown.
Whether any, and if so, what action was taken upon the postmaster-general's representation we do not know. There is some reason to think that between England and America sea-rates of postage were settled, as had been done a few years before in the case of Jamaica; but we possess no certain information on the point. All we know is that, upon Neale being informed of the postmaster-general's opinion that the inland posts should be transferred to the Crown, he immediately offered to surrender his patent, and that the offer was not accepted. The payment he demanded was either a capital sum of £5000 or else £1000 a year for life or for the unexpired term of his grant.
Hamilton returned to America. The next we hear of him is in 1700. Neale was then dead, having shortly before his death assigned his interest in the posts as security for his debts. To Hamilton he owed £1100, and to an Englishman of the name of West he owed for money advanced £200; and into the hands of these two persons, in default of any one willing to act as Neale's executor or administrator, the posts now came. In April 1703 Hamilton also died; and for three or four years his widow carried on the posts at her own charge.