It is interesting to note what at these three towns was the financial effect of giving postal facilities. During the year 1794-95 the penny post brought a clear gain to the revenue—in Manchester, of £586; in Bristol, of £469; and in Birmingham, of £240. It is a curious fact that, with this experience to guide them and with an anxious desire to extend the system, the Post Office authorities, after sparing no pains to inform themselves on the subject, came to the conclusion that neither at Liverpool nor at Leeds nor at any other town in England would a penny post defray its own expenses.

But it was in London that the penny post attained its highest development. This branch of Post Office business had long been shamefully neglected. Of the officers concerned in it those above the rank of sorter were only three in number—a comptroller, an accountant, and a collector. Of these the collector attended only occasionally, and the accountant and comptroller not at all. This neglect had its natural effect upon the receipts. During the last twenty years and more, notwithstanding the increase which had during this period taken place in the population and trade of the metropolis, the revenue of the penny post had remained almost stationary. Up to 1789 the highest sum it had ever produced in one year was £5157 net. This was in 1784, and for the five following years the receipts went on decreasing until, attention having been called to the decline, there was a sudden rebound. In 1792 the revenue was—gross £10,825, and net £5561.

Palmer, who was well aware of the discreditable condition into which the Penny Post Office had fallen, proposed to take it in farm, and offered as a consideration to forego his salary and percentage; but this was a proposal the acceptance of which was strongly deprecated by the Commissioners of Inquiry who sat in 1788 no less than by the postmasters-general. It was their unanimous opinion that the penny post should be retained in the hands of the State. Palmer, still clinging to the hope that other counsels might prevail, put off effecting improvements which would afford the strongest arguments against the adoption of his own proposal; and in 1793, in spite of the changes which had been going on all around, the Penny Post Office remained much as it had been during the last twenty years.

The man who now took the reform of the penny post in hand was Edward Johnson. Johnson was a letter-carrier. He had been appointed by Palmer or on Palmer's recommendation; and he soon gave proof of more than ordinary ability. Palmer not infrequently exposed him to a severe ordeal. When unable or unwilling to attend the postmasters-general himself, he would send Johnson in his stead, a substitution which they resented as unseemly; and thus some little prejudice had been excited against him. This prejudice, however, had disappeared with the cause of it, and Johnson now stood high, deservedly high, in the postmaster-generals' favour.

In 1793, in addition to the numerous receiving houses where letters for the penny post might be taken in, there were in London five principal offices—one known as the chief Penny Post Office, and situated in Throgmorton Street, opposite Bartholomew Lane; another called the Westminster Penny Post Office, and situated in Coventry Street, Haymarket; a third, the Hermitage Office in Queen Street, Little Tower Hill; a fourth, the Southwark Office in St. Saviour's Churchyard, Borough; and a fifth, the St. Clement's Office, in Blackmore Street. Between these five offices there was little or no connection; at no two of them were the number of collections or deliveries the same or the hours at which they were made; the letter-carriers were altogether too few for the ground which they had to cover, so that punctuality and despatch were impossible; and even those whose walks lay near the ten-mile limit, before proceeding to deliver their letters, had to come to London to fetch them.

Johnson proposed to change all this. He proposed to reduce the number of principal offices from five to two, retaining only the chief office and the office in Coventry Street; to increase the number of collections and deliveries; to give the same number to all parts served by the penny post, namely, six in the town and three in the suburbs, or, as the suburbs were then called, "the country," and everywhere, as far as possible, to observe the same hours; to post these hours up in every receiving house, so that the public might be made acquainted with them and act as a check upon their being observed; and, instead of requiring the letter-carriers in the remoter parts to come to London for their letters, to send their letters to them by mounted messengers.

Johnson's last proposal, though following almost naturally from what had gone before, well-nigh staggered the postmasters-general. It was that, in order to carry his plan into effect, the number of penny post letter-carriers should be more than doubled. The existing number was eighty-two, and the number which Johnson proposed was 181. This, even at the present time—large as are the numbers with which the Post Office has been accustomed to deal—would be considered a heavy, an exceptionally heavy, increase. In 1793 it was regarded as portentous, and the postmasters-general anxiously sought means to reduce it; but Johnson, besides being perfect master of his subject, possessed two faculties which by no means always go together. He possessed the faculty of devising a good scheme and the faculty of explaining it; and the lucid explanation he now gave convinced the postmasters-general that they could not do better than adopt his plan in its entirety. Contrasting the time which a letter took to pass between various parts of London with the time which it would take if his suggestions were adopted, Johnson had no difficulty in shewing that from his plan the public would derive facilities for intercourse to which they had hitherto been strangers.

There were, perhaps, no two places between which the course of post was more difficult to manage than Marylebone and Limehouse. Under the existing plan a letter from one of these two places, however early it might be posted, might not reach the other on the same day, and, even if it did so, an answer could not be received before the afternoon of the following day. Under Johnson's plan a letter might be received, an answer returned, and the answer answered, all on the same day. Places less inconveniently situated in relation to each other were to receive a still larger measure of benefit. Between persons residing in Lombard Street and the Haymarket, for instance, five letters might pass to and fro between the hours of eight in the morning and seven in the evening. This was within the town limits. Within the country limits the general effect of Johnson's plan may be stated thus: that to letters from London answers might be returned sooner by two posts if the letters were for places not more than five miles distant, and, if for places distant between five and ten miles, sooner by a period ranging from one to three days. The last-mentioned places, moreover, were to have three posts a day instead of one post.

Pitt was no less favourably impressed with Johnson's plan than the postmasters-general were; but before sanctioning it he resolved to await the passing of an Act for the redress of certain anomalies, or what were considered to be anomalies, in the practice of the penny post. This Act was passed in 1794; and immediate steps were taken for carrying the plan into effect. A proud day for Johnson must have been the 8th of September. On that day a public notice appeared announcing the changes that were about to take place; and this notice bore his signature. Only the other day he had been a letter-carrier, and now, by reason of a promotion which did hardly more honour to himself than to the postmasters-general who made it, he signed as deputy-comptroller of the Penny Post Office.

The financial results of Johnson's plan exceeded all expectation. For the last year of the old system the gross revenue of the penny post was £11,000. For the first year of the new system it was £28,560; and for the second year £29,623. Johnson had proceeded on the principle—a principle which from the first establishment of the Post Office has never yet been known to fail—increase facilities for correspondence and correspondence itself increases.