Stayner, with full knowledge of the conditions he had to meet, was convinced that the first step towards an effective reform was to sweep away the cumulative rates made up of the inland charges in the United Kingdom, the ocean postage and the inland colonial charge; and replace them by one fixed rate which would carry the letter from any post office in the United Kingdom to any post office in the colonies. When he first laid the proposition before the postmaster general, the Duke of Richmond, he recommended that this uniform rate should be two shillings a single letter.

But after some years' opportunity for reflection, aided beyond doubt by the argument of Rowland Hill for penny postage in Great Britain, Stayner concluded that his proposed rate was too high, and that, at one shilling and sixpence, or even one shilling and threepence, the increased patronage of the line by the public in the motherland and the colonies, would bring about an actual augmentation of the revenue.

How great the reduction in the charges would be, if Stayner's proposition were carried into effect, may be gathered from the fact that one of the elements making up the total postage was much in excess of the whole sum suggested by Stayner. On the supposition that the steamships landed the Canadian mails at Halifax, every letter brought by that means to Toronto would be subject to a charge of two shillings and ninepence for the conveyance from Halifax to Toronto, to say nothing of the shilling charge for its passage from Liverpool to Halifax, and the postage from the office of posting in the United Kingdom to Liverpool.

While negotiations with Cunard were still in progress, and the colonies waited expectantly for what was to be achieved by the new service, Stayner was much surprised and gratified to receive from the general post office in London a circular addressed to the postmasters in the United Kingdom stating that the postmaster general had decided to do away altogether with the inland rate or rather to incorporate it with the ocean rate which thenceforward would be one shilling.

This was beyond any anticipations Stayner had formed, and he lost no time in apprizing the public in Canada of the boon conferred upon them. There was rejoicing in Canada over the prospect of easy communication with the mother country, and the postmaster general received many commendations on his statesmanlike measure.[262]

But the rejoicing was not of long continuance. With the first intimation at the general post office of the announcement made in Canada there was despatched a letter from the secretary informing Stayner that he had quite mistaken the purport of the circular. Though sent to Stayner for his information, it was not intended to apply to Canada. The intention was merely to take off the British inland postage, and to leave the colonial inland postage to be collected as before. The reduction, in reality, amounted to very little, as the bulk of the postage on letters from Great Britain to Canada passing by way of Halifax had been that part levied for the conveyance from Halifax to the office of delivery in Canada.

Stayner was in no way to blame for the interpretation he placed on the circular, and he had the satisfaction of knowing that his misconception made the continuance of the high postage impossible. The public on both sides of the ocean had tasted the blessings of communication with their relatives on the other side, at an expense not considered beyond their means, and they were determined not to have the benefit withdrawn.

Accordingly when Poulett Thomson, afterwards Earl of Sydenham, came out as governor general with special instructions to remove all legitimate causes of dissatisfaction, he addressed himself to this question, and after a conference with Stayner, wrote to the colonial secretary urging the adoption of the shilling rate.

The colonial secretary submitted the governor general's views to the postmaster general, and in practical coincidence with the sailing of the first steamer under the Cunard contract, instructions were issued to make the total charge on letters to the British North American colonies one shilling, if the letter was addressed to Halifax, and one shilling and twopence, if its destination was inland, however distant.[263]

At the same time, a change of great importance was made in the principle on which the postage was based. It had been the practice to charge postage, according to the number of enclosures the letter contained. When penny postage was introduced in England a few months previously, one of the features of the new plan was the establishment of the weight principle in determining the charge on a letter, in substitution of the principle under which letters were taxed according to the number of their contents.