The committee were also to cancel any worn out and unserviceable plates of the current series, and to count and destroy the official stamps remaining in the vaults of the American Bank Note Company, of all denominations and Departments, numbering 17,024,588, of the 3 and 9 cent newspaper and periodical stamps of 1874, numbering 324,990, and of the 7, 12, and 24 cent stamps of the 1870 issue, numbering 1,414,300, a grand total of 18,763,878 stamps. On the 24th of February, the committee reported that they had carried out the order.
A. D. Hazen, Third Assistant Postmaster General, who recommended this holocaust, says:
"I have excepted from this recommendation the 3 cent stamps of the current series, of which there are 135,800 in the vault, for the reason that though their general issue has been discontinued, occasional calls are made for them by some of the larger offices."
The reports show further that from January 1st, to June 30, 1886, 1,094,200 three cent stamps were actually issued. During the same period, 201,600 six cent stamps were also issued, while 645,950 thirty cent stamps, and only 29,620 ninety cent stamps were issued. As a matter of fact therefore these values, though retired from general issue, are more in demand than the two higher values retained, nearly 2 to 1, as between the 3 and 30 cents, 50 to 1 as between the 3 and 90 cents, or 9 to 1 as between the 6 and 90 cents, and that too when the general public is unaware that these values can be obtained at all.
Contract for 1885-89.
The contract for the manufacture of adhesive stamps between the Department and the American Bank Note Company, expiring on the 30th of June, 1885, sealed proposals were invited by public advertisement of March 30th, 1885, for a new contract for four years from July 1st, 1885. The important features of the new contract to be noticed here, are first, that a definite standard of paper to be used for printing the stamps, made by an improved formula, was for the first time required, all other contracts having provided that the paper should be equal to a sample only; and second, that all ordinary postage stamps should be printed wholly by machinery run by steam power. "The two previous contracts, 1877 to 1881, and 1881 to 1885, expressly stipulated that the printing should be done on hand roller presses, the use of steam presses under the contract immediately preceeding the same, 1873 to 1877, which was silent as to the mode of printing, having resulted in extremely unsatisfactory work."
The act of the 48th Congress, Session II, Chapter 342, approved March 30th, 1885, provides:
"That upon all matter of the first class, as defined by chapter 180 of the laws of Congress, approved March 3d, 1879, entitled: An Act, etc., and by that act declared subject to postage at the rate of three cents for each half ounce or fraction thereof, and reduced by act of March 3d, 1883, to two cents for each ounce or fraction thereof, postage shall be charged, on and after the first day of July, 1885, at the rate of two cents for each ounce or fraction thereof; and drop letters shall be mailed at the rate of two cents per ounce or fraction thereof, including delivery at letter carrier offices, and one cent for each ounce or fraction thereof where free delivery by carriers is not established."
It was claimed that the improvements in machinery had produced steam presses that could produce better word than the hand presses, at less cost. Bids were taken for stamps printed entirely by hand, partly by hand and partly by steam, entirely by steam; the last two with or without an option reserved to the Postmaster General, to require the work to be done by hand roller presses. The Treasury Bureau of Engraving and Printing, the Franklin Bank Note Co., and the American Bank Note Co., were the only bidders. The latter again secured the contract to print the ordinary stamps, by steam power entirely, and the newspaper, postage due and special delivery stamps by hand roller presses. For the latter of these they are paid $18 per 1000, for the postage due $8.49 per 1000, and for the steam printed stamps $6.99 per thousand. For these latter the Government paid $9.19 under the previous contract up to 1885, $9.98 up to 1881, and $14.99 up to 1877.
The following is the number of stamps of the issue of 1870 as it is called without the grille.