In the ten months subsequent to the reduction it was—
37,431, at 1s. each, = £1,871.
The rule established by these facts, viz., that the demand for the article increases in a greater proportion than the price decreases, so that if one thousand are sold at 1s. many more than two thousand would be sold at 6d., is, it is believed, without exception. Certainly the article of postage does not furnish one.
“The reduction of the Irish postage rates which was made in 1827, was immediately followed by a considerable increase in the Irish Post Office revenue, though precisely to what extent it would be difficult to state, owing to a transfer that was made at the same time of certain receipts from the English to the Irish Post Office revenue. An alteration was made in the year 1831, which was equivalent to a partial reduction, by exempting the correspondence of a portion of the metropolis, which had paid the General-post rate, from paying an additional Twopenny-post rate. Consequent on this reduction, though at first attended with some loss, the Post Office revenue was improved to the amount of £10,000 a year, instead of there being a loss of £20,000 a year as had been expected by the Post Office. A reduction made in 1835, on the rates of ship-letters, has been followed by a considerable increase in that branch of the revenue.”[381]—Third Report of the Select Committee on Postage, p. 29.
Practical Effect of Reduction to One Penny.
The postage of letters between Edinburgh and the adjacent towns and villages was, in 1837, reduced from 2d. to 1d. In rather more than a year the letters had more than doubled, and were on the increase when the last returns were made.[382]
Postage between Stroud and Nailsworth in Gloucestershire was recently reduced from 4d. to 1d. The number of letters has already increased about sixfold.
Future Gross Revenue of the Post Office.
There seems, then, no rational ground of fear that the gross revenue of the Post Office will be diminished.
On the contrary, its increase might be safely predicted, even if no other change was contemplated than the proposed reduction. But taking the proposed additional facilities for the despatch of letters into account, the increase of the gross revenue may, at no distant period, be fairly expected to be considerable. Many persons, competent to form a sound opinion, think such increase will be very large.