The History of the British Post Office

by Joseph Clarence Hemmeon

The witnesses summoned to give their evidence before the committee pointed out that a multitude of business transactions were not carried on at all, or were carried on clandestinely, or were hampered by the high postage rates. Bills for small amounts were not drawn,[249] commercial travellers did not write until several orders could be sent on one sheet of paper,[250] samples were not sent by post,[251] communication between banks and their branches was restricted,[252] statistical information was denied,[253] social correspondence restricted especially among the poor,[254] working men were ignorant of the rates of wages in other parts of the country,[255] and the high postage was a bad means of raising revenue.[256] In order to estimate the probable revenue after the change, it was necessary to know the number of letters carried. Hill had come to the conclusion that the total number was about 80,000,000 a year. The Secretary, Maberley, considered that there were about 58,000,000. A return was called for by the committee and Hill's estimate proved to be nearly correct.[257]

The committee reported that the Post Office "instead of being viewed as an institution of ready and universal access, distributing equally to all and with an open hand the blessings of commerce and civilization, is regarded as an establishment too expensive to be made use of" (by large classes of the community) "and as one with the employment of which they endeavour to dispense by every means in their power." They were on less solid ground when they proceeded to state that the idea of obtaining revenue had been until lately only a minor consideration and that the Post Office had primarily been established for the benefit of trade and commerce.[258] Finally Hill's plan was approved, though only by the casting vote of the chairman, Mr. Wallace.

The House of Commons received the proposed change with favour. Over 300 petitions with 38,000 signatures were presented praying for its adoption. The Duke of Richmond, a former Postmaster-General, thought that it would be beneficial and that it was the only means of stopping the illegal conveyance of letters.[259] Sir Robert Peel was of the opinion that, with the prevailing deficits, it was an unfortunate departure, and he feared that prepaid letters would not be delivered.[260] But the Treasury was given power to lower rates and in 1840 a treasury warrant was issued, imposing postage rates between the colonies and between foreign countries through Great Britain according to weight and distance.[261] Stamped covers were issued for the use of members of Parliament, and in 1840 an act was passed establishing penny postage for the United Kingdom, permitting the use of stamped paper or covers, and imposing rates on foreign and colonial letters according to weight and distance conveyed.[262]

The complete change thus produced in the policy of the Post Office is vividly set forth by the old Secretary, Sir Francis Freeling. "Cheap postage"—he writes, "What is this men are talking about? Can it be that all my life I have been in error? If I, then others—others whose behests I have been bound to obey. To make the Post Office revenue as productive as possible was long ago impressed upon me by successive ministers as a duty which I was under a solemn obligation to discharge. And not only long ago. Is it not within the last six months that the present Chancellor of the Exchequer[263] has charged me not to let the present revenue go down? What! You, Freeling, brought up and educated as you have been, are you going to lend yourself to these extravagant schemes? You with your four-horse mail coaches too! Where else in the world does the merchant or the manufacturer have the materials of his trade carried for him gratuitously or at so low a rate as to leave no margin of profit?"[264]

CHAPTER IV

THE POSTAL ESTABLISHMENT AN INSTRUMENT OF POPULAR COMMUNICATION

With the inauguration of inland penny postage the Postal Establishment ceased to exist primarily as a tax-collecting agency, and, although maintained as a whole upon a paying basis, certain of its recent experiments have, from a financial point of view, been far from successful. On the other hand, the simultaneous unification and reduction of rates, together with various other changes which have been adopted since 1840, have resulted in lessening appreciably the expenses of management.

The postage on inland letters was reduced in 1865, 1871, 1884, and again in 1897. In 1839, the last year of high postal rates, the total number of letters, including franks, delivered in the United Kingdom, was somewhat in excess of eighty-two millions. This number was rather more than doubled in the following year. During the ensuing ten years the figures were again doubled, the total in 1850 being 347 millions. For the five-year period 1866-70, following the reduction in postage of 1865, the average yearly number delivered was 800 millions. In 1875 this increased to a little over 1000 millions; in the postal year 1880-81 to 1176 millions, in 1890-91 to 1705 millions, and in 1900-01 to 2323 millions.[265] So far as colonial letters were concerned, a marked reduction in rates was granted soon after inland penny postage was obtained, the reduction being extended to the larger part of the Empire.[266] Further reductions followed until, in 1898, a penny half ounce rate was established for most of the colonies, and all were included in 1905. As on a previous occasion, the United States was the first foreign country with which an agreement was made to adopt this low rate, and its advantages have been enhanced still further by an increase in the initial weight from half an ounce to an ounce. During the sixties, treaties were entered into with the most important European countries for lower postage rates, and, in 1874, at the first meeting of the Postal Union, a uniform rate for prepaid letters of 2½d. a half ounce was agreed to. Reductions also followed for other postal matter. In 1891 a universal foreign letter rate of 2½d. was announced so far as the United Kingdom was concerned, with the exception of those countries where a lower rate already prevailed, and a further reduction followed in 1907 by increasing the initial weight from half an ounce to an ounce in the case of all foreign and colonial letters, the charge on foreign letters for each unit after the first being reduced at the same time from 2½d. to 1½d.

After 1840 the registration fee was reduced by a series of gradations from 1s. to 2d., and the compulsory registration of all letters containing coin was enforced. In 1891 the separate system of insurance was abolished, and registration was extended for the first time to inland parcels. The limit of compensation was increased at the same time to £25 and in the following year to £50 by the payment of 2d. for the first £5 and an additional penny for each additional £5 of insurance.[267] Seven years later the amount of compensation payable was increased to £120 and the fee payable was lowered for all sums over £15. Arrangements were also made by which letters addressed to certain colonies and foreign countries might be insured to the same maximum amount.[268] The limit of compensation is now £400 for inland registered correspondence as well as for correspondence to many foreign countries and a few of the colonies.