Among other postal reforms dear to Hill's heart had been the compulsory payment of postage by means of stamps. He pointed out that this would greatly simplify the keeping of accounts by the department and increase the net revenue. The proposition was, however, too unpopular to secure approval. Nevertheless in 1847 the Postmaster-General secured parliamentary authority to abolish or restrict payment in money and require stamps to be used, but the experiment proved so unpopular that it was eventually abandoned.[269] The use of perforated stamps, an invention of Mr. Archer, was in 1852 recommended by a committee appointed to report on the question.[270] Finally, in 1904, the law forbidding the use of embossed or impressed stamps cut out of envelopes, postcards, letter cards, wrappers, and telegraph forms was repealed.[271]

From 1808 to 1840 the rural districts as a rule obtained their postal matter by a special payment on their part to messengers for its conveyance from the nearest town, sometimes aided by a bonus from the revenue, or by means of the "fifth-clause" posts,[272] or by the penny posts which were constantly increasing in number and were occasionally established under guarantee. In 1838 there were fifty-two "fifth-clause" posts in England and Wales, and 1922 villages in the United Kingdom were served by penny posts. In 1843 the government of Sir Robert Peel laid down the following principle: "All places the letters for which exceed one hundred per week should be entitled to a receiving office and a free delivery of letters." A "delivery" here meant a daily delivery, and the boundary of the free delivery was to be determined by the Postmaster-General. The principle enunciated above was followed until 1850, and during that period the increase in the number of free and guaranteed rural deliveries was very great. At the close of this period it was decided that in future the determining rule should be based upon the probability of financial success. A post was held to pay its way whenever its cost was covered by a halfpenny on each letter delivered, but, since it was held that the number of letters would be doubled by free delivery, double the number arriving before its establishment might be assumed to arrive afterward. The post might be bi-weekly, tri-weekly, or weekly. This rule was to a certain extent made retroactive, but no post established under the rule of 1843 was stopped so long as the cost was covered by calculating delivered letters at a penny each. It was decided in 1853 that a post less frequent than once a day might be increased in frequency whenever the cost would be covered by a revenue estimated on the basis of three farthings for each letter, and in treating an application for a second daily post this amount was to be reduced to one farthing. The experiment was tried of delivering letters at every house in a few selected places but did not prove a success. It was stated that at the end of this revision, 93 per cent of all postal packets were delivered. In 1860 the rule was laid down that new posts should be set up only when the cost would be covered by half a penny on each letter actually arriving, the old rule having been found to be too liberal. Two years later it was stated by the Post Office that only 6 per cent of the total postal packages were undelivered. In 1882 the question of extending the rural posts was considered by Mr. Fawcett, the then Postmaster-General, who decided that credit should be given for revenue by increasing the halfpenny to 6/10d. for each letter, and in the next year the existing rule as to a second daily delivery was made more liberal. In 1890, for places hitherto unserved, the rate per letter for estimating revenue was increased to three farthings, for each parcel the rate was fixed at 1½d., and in the following year rural sanitary authorities in England and Wales were authorized to guarantee posts. In Scotland the district committee or the county council, where the counties were not divided, was given the same power in 1892. In the same year the rule was laid down that a second service in the day might be given provided that its cost did not exceed half a penny a letter and a penny a parcel and in addition that the total cost of night and day mail services should not exceed the revenue from the whole correspondence at half a penny per letter and a penny per parcel. It was estimated in 1892 that about thirty-two and a half millions of letters were undelivered, but the work of extending the rural posts went on gradually until in 1897 it was announced that provision would be made as soon as possible for delivery to every house in the United Kingdom. In 1900 the Postmaster-General was able to report that house to house delivery had been completed in England and almost completed in Scotland and Ireland.[273]

In addition to the ordinary delivery at regular intervals there was a growing demand for a more rapid service on extraordinary occasions as well as a desire for a special messenger service when the use of the Post Office as a medium meant an undesirable loss of time. In 1886 a private company started to supply messengers for postal services. After some trouble with the Post Office, a licence was granted them in 1891 in return for which they agreed to pay a percentage of their gross receipts to the department and observe certain conditions with reference to the delivery of letters.[274] An express delivery service was also established by the Post Office, the fee in addition to the ordinary postage being 2d. for the first mile, 3d. for the second and beyond that, and where no public conveyances existed, 1s. a mile or actual cab-fare. In the case of letters delivered locally the ordinary postage was abrogated soon after and a charge of 1½d. per pound for parcels exceeding one pound in weight was imposed, but this charge was later lowered to a penny per pound with a maximum payment of 1s. and the maximum limit of weight was increased from 15 to 20 pounds where the messenger could travel by public conveyance. The initial charge for the first mile of 2d., and 3d. for each succeeding mile, for each parcel was made a uniform charge of 3d. per mile, and the fixed charge of 2d. for each parcel beyond the first was reduced to a penny where several packets were tendered by the same sender for delivery by the same messenger. In the case of several packages delivered at the same address the charge was lowered to 3d. plus an additional penny for every ten packages or part thereof, later changed to a weight fee of 3d. on each packet or bundle of packets weighing more than one pound.[275] Rural postmen were also allowed to receive letters and parcels from the public at any point in their walks and deliver them without passing them through a post office, having first canceled the stamps.[276] An agreement was also made with the railways to carry single letters left in the booking office for 2d. each. These letters may be taken to the booking office by messenger and delivered by a messenger at the end of their journey or posted there.[277] The express delivery service was also extended to such foreign countries as would agree to it, including nearly all of Western Europe, part of South America, and the far East. In every case the primary fee in England is 3d., the foreign charges varying with local conditions. Express letters from abroad are delivered free within one mile from the Post Office. Beyond that the distance charge is 3d. a mile for one parcel, with a penny for each additional parcel delivered to the same person. The Postmaster-General reported that the establishment of this service was not only much appreciated by the people, but was self-supporting and even profitable to the state. During the ten year period ending March 31, 1901, the number of express delivery services in the United Kingdom increased from 108,000 to 804,000.[278]

The impressed stamp to which newspapers were subject until 1855 enabled them to pass free by post. After this stamp ceased to be compulsory, newspapers which bore it passed free from other postage until 1870—when the halfpenny rate was established—and were known as "free"[279] as distinguished from "chargeable" newspapers. Of the former there were carried by post in 1856 over 53 millions, of the latter, including book packets, 20 millions. In 1875 the number of newspapers delivered in the United Kingdom had increased to 121 millions. For the five year period ending March 31, 1881, the average yearly number had increased to a little over 129 millions, for the next five years to something over 142 millions. During the period ending March 31, 1891, they had increased to 155 millions, there being an actual decrease in one year. In the period following there was an average yearly increase of only three millions and the ensuing five years ending March 31, 1901, showed a decrease of about one million.[280]

The book post, instituted in 1848, had its rates reduced in 1855 and again in 1870 to a halfpenny for the initial two ounces and an additional ½d. for each succeeding two ounces. In 1892 its scope was greatly enlarged and the expression Halfpenny Post, which is now its official name, better illustrates its cosmopolitan character for it now includes all printed documents of a conventional, formal, or impersonal character. From 1872 to 1875 the number of articles carried by the Halfpenny or Book Post increased from 114 millions to 158 millions. The yearly average during the next five years was 204 millions; during the following five, 305 millions and for the five year period ending March 31, 1891, they had increased to 418 millions. During the next five years there was a still greater average increase to 596 millions and the average for the postal year ending in March, 1901, was 732 millions.[281] The rates for the Inland Pattern and Sample Post, established in 1863, were assimilated with those of the Book Post in 1870. It was abolished or rather incorporated with the Letter Post in the following year but was reëstablished in 1887, the rates being a penny for the first four ounces and ½d. for each succeeding two ounces, but, when the Jubilee letter rates were published, it lost its raison d'être and was abolished for inland purposes.[282]

Post cards were introduced in 1870, being carried for ½d. each prepaid, 2d. when payment was made on delivery.[283] In addition to the stamp a charge was made to cover the cost of the material in the card itself. Somewhat later reply post cards were issued for the inland service and arrangements were made for the use of international reply post cards. In 1894, private post cards, to which a halfpenny stamp was affixed, were allowed to pass by post. The resulting enormous growth[284] in their number showed that the privilege was appreciated. In less than five years they were estimated to form 5 per cent of the total number passing through the post.[285] Shortly after, the prohibition of any writing save the address on the face of a post card was withdrawn and it was provided that the address side of all mail matter might be used for purposes of correspondence provided that it did not obscure the address, encroach upon the stamp, or prove in any way inconvenient. Formerly, so far as mail matter other than post cards was concerned, the right half of the face side was reserved for the address.[286] During the four five-year periods from 1881 to the year ending 31st March, 1901, the average numbers of post cards delivered yearly in the United Kingdom were about 108 millions, 152 millions, 272 millions, and 379 millions.[287]

It had not been usual for England to lag behind the continent in the adoption of new postal ideas. Such was the case, however, with reference to the adoption of the convenient post card and the no less useful parcel post. In 1880 the question of the establishment of an international parcel post was discussed in Paris and an agreement was reached for the transmission throughout nearly the whole of Europe of parcels not exceeding three kilogrammes in weight. It was impossible for Great Britain to sign, as she had no inland parcel post at the time and found it difficult to establish one as an agreement with the railways was necessary. A movement was at once begun for one and it was started three years later. The first despatch of foreign and colonial parcels took place in 1885, and at the beginning of the following year arrangements were completed for the exchange of parcels with twenty-seven different countries, including some of the colonies, India, and Egypt. An agreement was concluded in 1904 with the United States for the interchange of parcels by post at the rate of 2s. for each and the maximum is two kilogrammes. These cannot be insured and customs' duties must be paid by the recipient. The previously existing agreement for parcels weighing as much as eleven pounds each, providing for insurance and the prepayment of customs' duties, continues to be carried on by the American Express Company.[288] Since the establishment of the inland parcel post the question of collecting the value of the parcels on delivery, if the sender and the recipient so desire, has often been raised. Owing to the opposition of retail dealers, it has not yet been adopted although in operation in India and nearly all important foreign countries. In the words of the Postmaster-General—"In these circumstances I am by no means satisfied, so far as my enquiries have gone, that the apprehensions expressed by retail traders in this country afford sufficient cause for withholding a convenience from the community at large."[289]

The various changes and improvements adopted by the Post Office since 1840, in addition to those already named, are so numerous that only the most important can be considered here. Among others the amalgamation of the London District Post with the General Post in 1854 deserves attention. In the following year it was ordered that letters should be sorted in each of the ten postal districts into which London was divided instead of being taken to the General Office at St. Martin's-le-Grand as had been customary, thus materially lessening the expenses of sorting and facilitating their delivery.[290]

In 1840 there were but 4028 post offices in the Kingdom; in 1854, 9973.[291] Road letter boxes were introduced in 1858 and the public receptacles for the receipt of letters numbered 13,370 in 1859 as compared with 4518 before the establishment of penny postage.[292] In 1829 the total number of persons in England employed in Post Office business numbered only 5000. Twenty-five years later for the United Kingdom over 21,000 were so employed; in 1880 over 47,000, of whom, however, more than 11,000 were engaged wholly in telegraph duties. By 1890 these had increased to nearly 118,000 and by 1900 to 173,000 of whom 35,000 were females.[293]

The money order business which originated as a private speculation in 1791 was the result of an attempt to check the frequent theft of letters containing money. In 1838, shortly after its acquisition from the proprietors, the rates were reduced and the number of money orders transmitted increased from 188,000 in 1839 to 587,000 in 1840 and to 1,500,000 in 1842. From the latter date until 1879 the increase both in the number and in the value of money orders transmitted was steady, aided by the increase in 1862 from £5 to £10 of the maximum transmissible sum and by the reduction in rates in 1871. The penny rate of that year for orders to the value of ten shillings was a mistake, for the actual cost to the state of issuing and paying a money order was about 3d. In order to meet this difficulty a simpler form of order was issued in 1881 with an initial rate as low as half a penny, the cost of which to the Post Office was much less than that of the old kind of order. These postal notes, as they were called, were issued for new denominations in 1884 and 1905 and the rates on some of them were diminished. The lowest rate for a money order was for a few months fixed at 3d. but, as this aroused considerable opposition, the present rate of 2d. was soon after substituted, and in 1903 the maximum sum transmissible was increased to £40 with a few accompanying changes in rates. In 1889 an opportunity was given in the case of a few towns for sending telegraphic money orders and during the ensuing three years the privileged area was greatly extended. In 1897 the expenses were considerably reduced. In 1858 arrangements were made for the exchange of money orders with Canada and by 1862 similar agreements were decided upon with most of the other colonies, but foreign countries were not included until somewhat later and in 1880 colonial and foreign rates were harmonized. Rates were reduced in 1883, 1896, and 1903, and in the last year the inland £40 limit was agreed upon with most foreign countries and some of the colonies.