It has, however, been the practice in some quarters[13] to estimate the value of these communications, and the expediency of maintaining them, by the amount of postage of letters which they produce.
A more narrow and unstatesmanlike view of the question can scarcely be entertained; and a slight consideration of the following facts will suffice to show that such a mode of estimating their value to the public is extremely fallacious.
Who, that has had any experience of the operations of commerce, or of the practical business of Government, would estimate the value of an accelerated and certain transit of a merchant’s letter or a Government despatch by the amount of postage which the one brings in, or the other would bring in, to the revenue?
The rapid transit of the merchant’s letter is often the means of originating a commercial operation which gives employment to hundreds of artizans and labourers, thus increasing production and expenditure, and thereby returning into the exchequer, in taxes on consumption, thousands of times the comparatively trifling cost of its conveyance.
And how often does the acceleration of the public despatch facilitate the duties and contribute to the lessening of the expenses of Government? Instances are not unknown where the rapid transit of a despatch has saved an expenditure for warlike supplies and operations, to the amount of many hundreds of thousands of pounds.
That facility of intercourse and transit creates and increases commerce, is a fact which experience has abundantly established. A circumstance strikingly illustrative of it, and connected with one branch only of this Company’s operations, was stated in evidence before the Parliamentary Committee of last session on the Steam Navy, and is as follows,—viz.:
Extract from the Evidence of Mr. Anderson, M.P., a Member of the Committee.
But I wish to remark that, to estimate the value of these communications merely by the postage of the letters carried, I consider to be a very erroneous estimate; there are incidental public advantages arising from those communications which I consider far to overbalance the cost of them; for instance, by facilitating the communications with those foreign countries and dependencies, you promote the increase of your commerce. And I will mention one fact, which I think will illustrate the opinion I am now giving. About some six or seven years since, the merchants connected with Constantinople and the Levant were very desirous of having steam communication established with those places, and the Company with which I am connected were willing to establish such communication; but the returns being rather uncertain, while the expenses were certain and very heavy, they considered they were scarcely warranted in entering upon such an enterprise without some assistance. It was proposed to the then Chancellor of the Exchequer, Mr. Goulburn, that he should make some allowance, some few thousand pounds, for an improvement which was proposed to be made in the postal arrangements with Constantinople, and which would have reduced the post between London and Constantinople to thirteen days, instead of twenty-four. Mr. Goulburn objected to entertain the matter, but subsequently the communication was established. I find, in looking to the statistics of our export trade, that comparing the amount of our exports to the quarters to which those steamers run, previous to their establishment, with the amount at the end of the year 1846, there was an increase of about £1,200,000 a year. I find also that the actual value of the goods exported in those steamers from Southampton last year amounted to within a very trifling fraction of one million sterling. And referring to several Greek merchants connected with the trade, of much intelligence, for the cause of that increase, they told me that they felt perfectly certain that the establishment of the steam communication had been the great cause of the increase of the trade. I asked them on what grounds they formed that opinion, and they said it was upon these grounds: that the steam communication enabled them to turn their capital over a great deal oftener than by sailing vessels; that it gave them a certainty as to the time their goods could be in the market, and they also had a certainty of return for their exports. That no less than forty new Greek mercantile establishments had been formed in this country, since the time of the establishment of those steamers. Supposing those assumptions to be correct, which I believe they are, or nearly so, I think I am warranted in forming the opinion that the revenue has been very greatly increased, inasmuch as the trade is of the most valuable nature for the employment of our artizans and labourers. The exports consist of manufactured goods of the finest class; and the imports of raw material, as for example, silks and goats’ wool, coming here to be manufactured. I am informed that the wages of labour on this fine class of manufactured goods amount to about two-thirds of their value. Assuming that to be the case, and that the trade has been increased by means of the steam communication with Constantinople and the Levant to the extent of about £1,000,000 sterling, that is taking the exports and imports together, £600,000 of that amount have been paid to artizans and labourers, and expended by them for the supply of their ordinary wants. And as the proportion which goes to the revenue in the shape of direct and indirect taxes is usually estimated at about twenty per cent. of such expenditure, it follows that the national exchequer has been benefited to the amount of twenty per cent. on £600,000, or say £120,000 per annum, by the establishment of that steam communication. The effects, therefore, of those communications are, I submit, to increase trade and industry, and consequently the public revenue, while they at the same time provide us with an important means of maritime defence in case of need.[14]
The means of maritime defence provided through the three large Companies employed in the Contract Mail Packet Service are as follows:—
| Name of Company. | No. of Vessels. | Aggregate Tonnage. | Aggregate Horse Power. |
|---|---|---|---|
| Peninsular and Oriental Company | 23 vessels | 25,226 | 8,040 |
| West India Royal Mail Company | 12 vessels | 19,993 | 5,520 |
| North American Royal Mail Company | 9 vessels | 15,560 | 5,400 |
| Total | 44 vessels | 60,779 | 18,960 |