| The amount of Government postage is, on the average, about | £150,000 | per annum.[257] |
| Of which that of the Post Office itself is about | 40,000 | " |
| ———— | ||
| Leaving for the other Departments about | £110,000 | " |
The postage of the Post Office itself cannot affect the Net Revenue, seeing that it is included in the expenditure as well as in the gross receipt. It may, therefore, be left out of consideration.
As regards the correspondence of the other Government departments, if it were right to deduct the postage of it from the revenue of the Post Office, it is obvious that it would also be right to deduct the cost of its conveyance and delivery from the expenditure of the Post Office. The net revenue would therefore be reduced, not by the full sum of £110,000 above mentioned, but by that amount less the cost of conveyance and delivery; in other words, by the profit the Post Office obtains on the official correspondence. It is to be borne in mind, however, that official postage is, in nearly all cases, charged by weighing the letters not individually, but in the gross; a mode of procedure which, if applied to private correspondence, would reduce the rate of charge for such correspondence by about one-half; and although, owing to the greater average weight of official letters, the reduction of charge is not so great as one-half, it may be doubted whether the remaining charge be sufficient to leave any profit to the Post Office, so that, whether the amount received and the cost incurred for the conveyance and delivery of official correspondence be, or be not, included in the calculation, the net revenue of the Post Office could be but very slightly affected. It may be added that the postage charged against the various Government departments is actually paid into the coffers of the Post Office, and is not merely a statistical record.
(b.) The proceeds of the impressed stamp on newspapers is an item regarding which the claim of the Post Office to include it in the receipts is sufficiently established by reference to the fact that, though this part of the revenue is collected by another department, the sole purpose for which the stamp is now resorted to is to obtain for the newspaper the advantage of postal transmission. At the same time, it may be added, that the proceeds in question, amounting for the year 1861, to £134,571,[258] are by no means a remuneration for the service performed. Divided by the number of such newspapers conveyed (viz., about 41 millions),[259] this amount gives only four-fifths of a penny per paper; so that, as newspapers weigh on the average 2½ ozs. each,[260] the rate of charge for a newspaper is less than one-seventh of that for a letter of the same weight.
An argument in favour of the sufficiency, and even more than sufficiency, of the postage on newspapers to defray their postal expense, has been drawn from the fact that the railway companies actually convey them at a lower rate. But two important circumstances have to be borne in mind, 1st, that railway companies, instead of delivering the newspapers individually, merely hand them in bulk to the newspaper agents; and 2ndly, that the companies make little or no provision for conveyance to villages and hamlets, thus performing only the least expensive portion of the service, and leaving the more costly work to the Post Office.
After what has been said, it must be obvious, that even when newspapers are prepaid with a postage stamp (the charge being thereby raised to a penny for each transmission[261]), the payment is too low to be remunerative. Moreover, the privilege accorded to news papers indirectly forces another loss on the department, since the difficulty of discriminating between newspapers and other printed matter has, in fact, compelled a reduction of the book postage to the same rate. So that, whereas formerly no book-parcel was carried for less than sixpence, the charge on light book-parcels is now as low as a penny. Instead, therefore, of any part of the receipts from newspapers being withheld from the Post Office, as it is alleged ought to be done, an equitable adjustment would have the effect of placing to the credit of the department something additional for the unprofitable service thus thrown upon it.
Under the head of expenditure, the only material item regarding which a difference of view prevails, is the expense of the packet service, which expense, it is maintained by some, should be charged to the Post Office.
The claim that the Post Office should be charged with the whole expense must be considered as barred by the simple fact, that few of the mail-packets were established either by the Post Office, or for merely postal purposes, their expense being far beyond what such requirements could justify. “To assume that those packets were really established for Post Office purposes is to charge the Government with the most absurd extravagance. The West India packets, for instance, were established at a cost of £240,000 per annum, though the utmost return that was expected from letters was £40,000, leaving the £200,000 a clear deficit.
“Nor is this comparative uselessness for Post Office purposes confined to the packets to remote places; the great cost, even of the home packets, results from causes independent of the Post Office.” [262]