With the introduction of penny postage the gross revenue of the Post Office fell from £2,390,763 in 1840 to £1,359,466 in 1841, and did not fully recover from the decreased postage rates for twelve years. The cost of management, on the other hand, increased only from £756,999 in 1840 to £858,677 in 1841. But the financial loss is shown most plainly in the falling off in net revenue from £1,633,764 to £500,789. If we exclude packet expenses, and such was the practice until 1858, the net revenue did not again reach the maximum figure of high postage days until 1862. Including packet expenses we find that the net revenue did not fully recover until the early seventies. The average yearly gross revenue for the period from 1841-45 was £1,658,214, expenditure £1,001,405, and the net revenue £656,809. These all increased steadily and on the whole proportionately until 1860, the average yearly figures for the preceding five years being £3,135,587, £1,785,911, and £1,349,676. In 1858 the packet expenses are included under cost of management and their enormous increase from the beginning of the century sadly depleted the net revenue. It seems more advisable, however, not to include them until 1860 when the packets passed from the control of the Admiralty to that of the Post Office. The average gross revenue for the years 1861 to 1865 was £4,016,750, expenditure (including packets) £3,013,389, and net revenue £1,003,341. During the next quarter of a century these increased to £6,326,141, £4,019,423, and £2,306,718 respectively, exclusive of telegraph receipts and expenditures. For the five years ending 31st March, 1906, the average gross revenue was £15,926,905, expenditure £11,156,292, and net revenue £4,770,613.[730]
CHAPTER IX
THE QUESTION OF MONOPOLY
The question of the state's monopoly and the opposing efforts of the interlopers to break this monopoly resolves itself into a consideration of the way in which private letters were carried, for the public letters were entirely at the disposal of the state to be dealt with as it saw fit. From the sixteenth century there were several ways in which private letters might be conveyed. Within the kingdom they might be sent by the common carriers, friends, special messengers, or the Royal Posts. Letters sent abroad were carried by the Royal Posts, the Merchant Adventurers' Posts, the Strangers' Posts, and the Merchants' Posts while they lasted. The fact that private letters were conveyed by the Royal Posts is generally expressed in rather indefinite terms or by references to proclamations, but that they were actually so conveyed is entirely beyond doubt.[731] In 1585 a certain Mr. Lewkenor informed Walsingham that the post just landed had brought many letters directed to merchants, besides those for the Court and Government. He asked whether he might open those letters which were directed to suspected merchants.[732] This reference is of course to letters coming from abroad. The same holds true of inland letters, for in 1583 Randolph, the Postmaster-General, wrote to Walsingham, enclosing the names of those "who charge the posts with their private letters and commissions at a penny the mile."[733]
In 1591 the first proclamation affirming the government monopoly in the foreign posts was issued. All persons except the Postmaster-General and his deputies were forbidden "directly or indirectly to gather up, receive, bring in or carry out of this realm any letters or packets," the only exceptions being in the case of the despatches of the principal Secretaries of State, of Ambassadors, and others sufficiently authorized. An appendix to the same proclamation commanded all mayors, bailiffs, sheriffs, justices, etc., and especially all searchers to be on the watch for men coming into or going out of the realm with packets or letters. In this last part of the proclamation we can see why it was thought necessary to restrict the carriage of letters to and from foreign countries to the Royal Posts. It was done that the Government might be able to discover any treasonable or seditious correspondence. This did not always remain the object of the state in restricting competition but was succeeded later by other and different motives. In order that there might be no doubt about the whole question, the Postmaster-General received word from the Council to inform the London merchants, foreigners as well as British subjects and all others whom it might concern, that they should no longer employ any others to carry their letters than those legally appointed in accordance with the terms of the proclamation.[734]
In 1602 the first order concerning the despatch of private letters within the kingdom was issued to the Royal Posts. "The Posts for the Queen's immediate service"[735] were allowed to carry only state despatches, directed by members of the council, the Postmaster-General and certain officials. Such despatches when sent by the regular posts were to be forwarded immediately. The letters of all other persons allowed to write by post must wait for the regular departure of the postmen. In the orders to the posts issued in 1609, the first article reads as follows: "No pacquets or letters shall be sent by the Posts or bind any Post to ride therewith but those on Our special affairs."[736] The first part of this is certainly strong but it is modified by the succeeding clause "nor bind any Post to ride therewith." Evidently he might if he wished, and he would probably hesitate longer over a state packet for the conveyance of which he was never assured of anything than over a private letter for which he was certain of his pay.
It was the custom after 1609 to follow the appointment of every new Postmaster-General with a proclamation assigning him and his deputies the sole privilege of carrying all letters and reading anathema upon all interlopers.[737] Thus King James favoured Stanhope, his Postmaster-General, with a grant of monopoly.[738] On de Quester's appointment as Foreign Postmaster-General a proclamation was issued, forbidding any but his agents from having anything to do with foreign letters.[739] In spite of the improvements which he inaugurated, we find him asking the King a few years later to renew his patent of monopoly and his request was granted.[740] He was evidently suffering from competition. But the Merchant Adventurers' Posts were not yet dead and their Postmaster, Billingsley, abetted by the House of Commons,[741] gave de Quester so much trouble that he was imprisoned by the Council's order.[742]
In the meantime the postmen on the London-Plymouth road had petitioned the Council that they alone should carry the letters and despatches of the merchants over their road. They said they had so improved the service between London and Plymouth that letters were now despatched between the two cities in three days and an answer might be received within one week from the time of first writing. Their complaint was against a certain Samuel Jude, who had undertaken the conveyance of the London merchants' letters. Jude himself acknowledged this, but said that he had never meddled with the "through" post by which he meant the travellers' post.[743]
So long as the Royal Posts did not give satisfaction, competition was inevitable. Under Witherings they had improved so much that what competition there was, received no support from the London merchants. In 1633 they addressed a petition to the King, praying that he would protect Witherings from some strangers in London, who had set up posts of their own. They pointed out how he, acting with some foreign postmasters, had set up packet posts, travelling day and night. By means of these, letters were conveyed between London and Antwerp in three days, while the messengers needed from eight to fourteen days to travel the same distance.[744] The common carriers were giving trouble in the despatch of inland letters at the same time that competition in the foreign posts was attracting attention.[745] It was their custom to send their carts on ahead while they lingered to collect letters. After the collection they hastened on, leaving their carts behind, and delivered the letters on the way. It was provided that no carrier should stay longer than eight hours in a place after his cart had left it, or arrive in any place eight hours ahead of it.[746] As long as their speed was governed by that of their lumbering carts over the wretched roads, no fear was felt that their competition would prove troublesome.