As regards the Government correspondence.
It is alleged that, under the old system, this was carried free. Now the fact is, that under that system the departments of probably the largest correspondence, viz., the Customs, the Excise, and the Stamps and Taxes, paid the postage of all their letters, while some other departments, though less strictly dealt with, paid at least for their foreign correspondence. The aggregate of such payments amounted, on the average, to about £45,000 per annum.[268]
Now, seeing that, since the adoption of Penny Postage, the non-official correspondence has increased nearly eight-fold, it may well be doubted whether, had the old system continued, the official correspondence would not have so increased as to raise the expenditure from £45,000 per annum to at least equality with the £110,000, the present average.[269]
As regards Newspapers.
As, under the old system, the proceeds of the impressed stamp did not enter into the accounts of the Post Office, so, for the purpose of comparison, they must be excluded now; the only question, therefore, is, whether the Post Office should now be credited with the revenue derived from the adhesive stamp as applied to newspapers. This claim has been contested on the ground that, as under the old system newspapers were carried free, so the same service should be reckoned as performed now on the same terms; and it has been naturally supposed that the effect of recent changes has been to reduce the number of newspapers transmitted under the impressed stamp, the decrease being counterbalanced by the use of the adhesive stamp for which, therefore, in the comparison, no claim should be made.
Now, the fact is that, notwithstanding the option now given, the number of newspapers freed by the impressed stamp at the present time is not only as great as the number so conveyed in 1838, but is even somewhat larger; whilst a considerable increase has also taken place in the weight and bulk of the individual papers; so that the amount of gratuitous service, instead of being diminished, has been largely increased, and consequently, the sum derived from the adhesive stamp is, to say the least, a mere payment for additional duty.
Again, it is a mistake to suppose that, under the old system, the conveyance of newspapers was altogether free. In fact, there were numerous and important exceptions, since the impressed stamp, to which all newspapers were then subjected, freed the paper only when transmitted from one post-town to another; moreover, in nearly every town there were extensive districts beyond the free-delivery, in which not only letters, but newspapers, were subjected to an additional charge. From this charge both are now relieved. Again, in addition to the towns that were then post-towns, there are at present more than 10,000 places having sub-offices. Before the introduction of Penny Postage, a newspaper transmitted by post between a post-town and, with few exceptions, any of the 10,000 places which have now sub-offices, was subjected to a charge of at least one penny; and when transmitted between any two of the above 10,000 places, with but few exceptions, to a charge of at least twopence.
At present a newspaper, even without the impressed stamp, if posted at any one of the 11,400 places at which head or sub-offices are now established, provided only that it does not exceed 4 ozs. in weight, is delivered at any other for a single penny.
No doubt, the number of newspapers directly charged with postage is larger now than under the old system; but as the charge is far from being remunerative, this is anything but a gain to the department.
As regards the expense of the Packet Service.