From the London Times
HISTORY AND CONDITION OF THE CHEAP POSTAGE SYSTEM.
A traveller sauntering through the Lake districts of England, some years ago, arrived at a small public-house just as the postman stopped to deliver a letter. A young girl came out to receive it. She took it in her hand, turned it over and over, and asked the charge. It was a large sum—no less than a shilling. Sighing heavily she observed that it came from her brother, but that she was too poor to take it in, and she returned it to the postman accordingly. The traveller was a man of kindness as well as of observation; he offered to pay the postage himself, and in spite of more reluctance on the girl's part than he could well understand he did pay it, and gave her the letter. No sooner, however, was the postman's back turned than she confessed that the proceeding had been concerted between her brother and herself, that the letter was empty, that certain signs on the direction conveyed all that she wanted to know, and that as neither of them could afford to pay postage they had devised this method of franking the intelligence desired. The traveller pursued his journey, and as he plodded over the Cumberland fells he mused upon the badness of a system which drove people to such straits for means of correspondence, and defeated its own objects all the time. With most men such musings would have ended before the hour, but this man's name was Rowland Hill, and it was from this incident and these reflections that the whole scheme of penny postage was derived.
The value of this reform is felt in every household throughout the kingdom, but its extent will be well shown by the extraction of some figures from a return which has just been made to the House of Commons. The first general reduction of postage took place on the 5th of December, 1839—a fourpenny rate being interposed for a short time before the universal charge of a penny. At this time the number of letters delivered annually in the united kingdom was about 75 millions, the actual estimate for 1839 being 75,907,572. The gross amount of the tax levied upon this delivery was no less than 2,339,737l., of which, as the cost of management was only 687,000l., there was 1,652,424l. carried to the account of profit. Last year the number of letters delivered in the united kingdom was estimated at upwards of three hundred and forty-seven millions, while the penny tax upon the same amounted to no more than 2,264,684l., so that while our payments to the Exchequer have been actually lessened, the service rendered to the public has been multiplied fivefold—in other words, we pay less for five letters than we formerly paid for one.
It is worth remark that the correspondence in the three kingdoms has increased almost equally. In 1839 the deliveries were 59,982,520; 8,301,904; and 7,623,148, in England, Ireland, and Scotland, respectively; while last year they were 276,252,642; 35,388,895; and 35,427,534. The rate of increase has been continuous, though not quite constant, ever since the reduction. The first effect of the reform was to double the deliveries at once, and turn the 75 millions into upwards of 160 millions. From that time to this the increase has proceeded at the rate of 10 or 20 millions a year, the smallest augmentation being in the famous year of 1848, when the delivery exceeded only by 6 millions that of 1847; and the largest in the equally famous times of 1845, when railway speculations added 28 millions of epistles to correspondence of the year preceding. The return before us includes, we hardly know with what view, a weekly account taken once a month for 1850, and from this curious table it would seem that during the month in which ladies talk least they write most; at any rate the largest number of letters yet counted was for the week ending February the 21st.
The cost of management has, of course, been swelled considerably under the new system, though by no means in proportion to the increased service, for whereas the deliveries, as we have said, are multiplied fivefold, the expenses are only multiplied about twice and a half, being 1,460,785l. in 1850, against 686,768l. in 1839. The return does not comprise the items out of which this sum is made up, though it specifies the amounts paid in each year for the conveyance of mails by railway. These amounts fluctuate rather curiously from 12,623l. in 1839, to 206,357l. in this present year of 1851—not increasing gradually or even constantly, but rising or falling occasionally, though with an ultimate tendency to rise. We should have rather liked to see the expenses of management and conveyance stated separately, and some means of comparison given between the cost of railway carriage and that of the old mail coaches. About 10,000l. per annum of the total disbursements is devoted, we are told, to pensions, and must therefore be distinguished from the direct expenses of the Post-office service. All things considered, perhaps, this "non-effective" charge is not heavy; in fact, we believe that Post-office servants are by no means extravagantly paid either for their work or at their retirement.
The Money Order office forms a distinct establishment of itself, and a curious institution it is. The amount of orders issued in 1840, the first year of the system, was 240,063l. for England and Wales, 47,295l. for Ireland, and 25,765l. for Scotland. In the year 1850 these amounts had increased in England to no less a sum than 7,173,622l., in Ireland to 623,732l., and in Scotland to 697,143l. The total sum was 8,494,498l., and the number of orders of which it was composed 4,439,713, showing an average of some shillings less than 2l. per order. The proportion between the number and the amount of the orders does not vary greatly in the three kingdoms, though the average amount of each order is somewhat larger in Scotland than Ireland, and in England than Scotland.
The Scotch transactions fell off considerably in the year 1849, but the English and Irish offices have steadily increased their business, nor is any effect perceptible in the latter country, either from the famine or the rebellion. The return of "money orders issued" is distinguished from that of "money orders paid," and the difference between these gross amounts is no less than 11,000l. in favor of the Post-office for the year ending the 31st of last December. Some of these orders will no doubt have come in for payment during the current year, but we suspect that ignorance, negligence, or accident must be leaving an appreciable balance to accumulate on the side of the office. Country bankers, we believe, used to reckon upon a gain of 5l. per cent. on the score of notes lost, mislaid, hoarded, destroyed, or otherwise not presented for payment. Money orders are doubtless more rigorously exchanged for cash, but there must still, we imagine, be a profit from this source, especially as the Post-office circumscribes the term of its liability, which bankers did not. The total expenses of the Money Order offices, both in London and the country, are returned at 70,577l. and the total amount of commission received at 73,813l.—a fair balance of charge and service.
The actual benefits, however, of this prodigious reform extend far beyond those immediately represented in the figures we have given. It is not the mere saving of 4d. or 5d. on a letter by which the country has so enormously gained. The facilitation of business, the diffusion of information, the correspondence of friends, and the maintenance of family connexions, which in old days were severed for ever, are the real and inestimable advantages of Mr. Rowland Hill's invention. Like most reformers, he had to contend with violent and not always sincere opposition. The system, indeed, was long deprived of a fair trial by the obstinate resistance of those who should have aided him, and it is mainly owing to this concerted hostility that the results are not as favorable to the revenue as they are to the welfare of the country. But the principle is now established, and of all the reductions which a Chancellor of the Exchequer has ever made there has been none attended with such universal relief, convenience, and benefit as this sacrifice of 800,000l. for the sake of the letter writers.