PENNY POSTAGE AND THE POST OFFICE. child in the kingdom enjoys a practical free From the British Foreign Review. 1. Report from the Select Committee on Postage, together with the Minutes of Evidence, Appendix, and Index. Ordered by the House of Commons to be printed, Aug. 14th, 1843. 2. The State and Prospects of Penny Postage, as developed in the Evidence taken before the Postage Committee of 1843, with incidental remarks on the Testimony of the Post-Office Authorities, and an Appendix of Correspondence. By ROWLAND HILL. London: Charles Knight and Co., 1844. dom of correspondence, next in value to the liberty of speech, but the act is attended with the necessary incompleteness of his plan, whereby it can be shown that the public treasury is mulcted of an immense revenue, and the public despoiled of innumerable con veniences. WHEN the bill on Penny Postage was under discussion in the House of Lords, the Duke of Wellington bore testimony to the superior merits of Mr. Rowland Hill's plan "Reduction, increased convenience and eco Reduction of postage, uniformity of charge, prepayment and use of stamps, were doubtless essential features of Mr. Hill's plan, but they were far from being the whole: from first to last Mr. Hill has professed that they formed but a portion of it. Increased speed in the delivery of letters, greater facilities for their despatch, simplification in the operations of the Post-Office, were parts, though less novel and less obvious, no less necessary. over any other. Though opposed to the re- nomy," as Sir Thomas Wilde observed, duction of postage, as inopportune at that were all to be taken together," and he proparticular time, his Grace advised the passing ceeded to say that the removal of Mr. Hill of that bill on the express ground that it ena- showed that the plan was intended to be bled the Government to carry out Mr. Hill's given up. "The dismissal of Mr. Hill was plan. The Treasury, he argued, have al- the knell of the plan." Almost with the ready sufficient powers to reduce postage to voice of a prophet, Mr. Matthew Hill foreany extent they please, and they are evidently told three years and a half ago,-before his not very scrupulous about the matter; they brother entered the service of the Treasury, may give up the whole postage revenue with- - that the very parts of the plan now left out asking their lordships' leave, they can do this mischief, but they cannot give effect to Mr. Hill's plan without new powers; he therefore recommended the passing of the bill, because it conferred those powers. "For," to use the Duke's own words, "I am disposed to admit that the plan called Mr. Rowland Hill's plan is, if it were udopted exactly as was proposed, of all the plans that which is most likely to be successful." But the Duke's sound opinion, which is recorded in Hansard of the 5th of August, 1839, does not seem to have had much weight with any member of the administration to which untouched were those surrounded with the greatest difficulties of execution. He said, "The reduction of postage and the modes of prepayment are no doubt the principal features of your plan; but you lay great stress, and very properly in my opinion, on increasing the facilities for transmitting letters; and this part of the reform will, I apprehend, cause you more labor of detail than that which more strikes the public eye. In this department you will be left to contend with the Post-Office almost unaided. It will be very easy to raise plausible objections to your measures, of which ministers can hardly be supposed to be competent judges, either in respect of technical information or of leisure for inquiry." Grace belongs. It is set at nought by the prime minister, passed over by the Chancellor of the Exchequer, ridiculed by the Post- The prediction has been only too well fulmaster-General, and scorned by every one of filled. his officers, from the secretary to the letterFour years ago we argued for the adoption carrier. All are in league, not only to pre- of the Penny Postage, and a few months vent the adoption of Mr. Hill's plan exactly brought about the desired event. We have as was proposed, but even half of Mr. Hill's now to advocate its completion, and with an plan. It is hardly necessary to say that they equal confidence as to the result of our laare working to retard its success, and to fulfil their official predictions of its failure. Bad it is for Mr. Hill, worse for the revenue, still worse for the good and convenience of the public, that the Duke's opinion should have failed to weigh with his fellow bors, though the advent may not be quite so soon at hand as before. Before we proceed to describe the portions of the plan remaining incomplete, something should be said of what has been carried into execution and of the results. A Select Com ministers. The dismissal of Mr. Hill is not mittee of the House of Commons, on the merely unjust to an individual through whose motion of Sir Thomas Wilde, was appointed exertions almost every man, woman, and in the last session of parliament, to inquire "into the measures which have been adopted of the rate, prepayment partially, the use of for the general introduction of a penny rate stamps, and charge by weight, instead of inof postage and for facilitating the convey-closures or sheets of paper. The public has ance of letters, and the result of such mea- quietly submitted to the alleged tyranny of sures, so far as relates to the revenue and paying a penny for all distances, both long expenditure of the Post-Office and the gen- and short; and Colonel Maberly's logic, that eral convenience of the country, and to re- "because objections had been made to difport their observations thereupon to the ferent rates for the same distances, they House." Nearly seven weeks were occu- would therefore be made to a uniform rate pied by their proceedings. Mr. Hill, the for different distances has proved fallacious." Postmaster-General, the Secretary, and chief (Committee of 1838, Evid. 3020, 3029.) functionaries of the Post-Office were ex- His impression that "a uniform rate would amined. The Committee had not only a not be practicable in this country, consistmajority of ministerial supporters, but a sec-ently with a due regard to public opinion, retary of the Treasury for its chairman, yet which a popular government must always it did not "report its observations." Indeed entertain," (Evid. 3031,) has also turned out a ministerial supporter, Mr. Bramston, speci- erroneous. Uniformity has even proved usefically proposed that the evidence merely, ful and convenient to the Post-Office, in spite without observations, should be reported, of official affirmations that it would not. and the proposition was carried after a divi- Prepayment too has been adopted almost sion, in which a member of the government, universally, and the public has not "objectMr. Emerson Tennant, is to be found in ed to paying in advance, whatever the rate," the majority. So bad must have been the Post- as was predicted (Evid. 10,932-3.); at the Office case, that even its own defenders (for present time scarcely five per cent. of the the present administration has unfortunately allied itself with the Post-Office against Mr. Hill) were unable to stand up in its defence. The only report which was made on this important controversy it will be sufficient to print as a note.* The Committee, however, have issued a stout 'blue book,' filled with details, which will furnish us with valuable materials for the present discussion. The parts of Mr. Hill's plan already carried out are uniformity of charge, reduction * The following is the Committee's Report :"The Select Committee appointed to inquire, etc.,. have, with the view of ascertaining the results of the Penny Postage on the revenue and expenditure of the Post-Office, called for returns of the gross and net revenue of the Post-Office for the three years previous and subsequent to its adoption: these returns will be found in the appendix to this Report. "Your Committee have examined at great length Mr. Rowland Hill, with regard to several proposals which were brought under their notice by him, for extending the facilities of the correspondence of the country, and for improving the management and reducing the expense of the Post-Office. They have also examined several of the officers of the Post-Office, with regard to the expediency and practicability of adopting these measures. "Your Committee regret that, on account of the late period of the session to which their inquiries were extended, they find it impracticable to report their opinions on these various matters, involving, as they do, many minute details. They are unable to do more than report the evidence which they have taken; to which they beg leave to refer, as well as to the correspondence which will be found in the appendix, in connection therewith, between the Treasury and the Post-Office; from both of which departments, they entertain no doubt, these propo. stions will receive the fullest consideration."" letters are unpaid. But the Post-Office blows hot and cold with the same breath: the President of the Inland-office says:- "My impression is, that to resort to the old system of optional payment would make a great deal of labor, and produce very little revenue in proportion to the labor, for I am inclined to think that the Post-Office would be inundated with unpaid circulars, which you would have the trouble of presenting and get nothing for." (Evid. 2513.) But when he is afterwards asked, "Have you found prepayment a great convenience or not?" he says, "No, I cannot say that I have; it has facilitated the delivery of letters, but nothing beyond that." (Evid. 2592.) With respect to the smuggling of letters, which has been entirely suppressed, Mr. Hill said, "Adopt the Penny Postage and the smuggler will be put down." Not so Colonel Maberly; he said in 1838, "There always must be evasion, inasmuch as the smuggler must always beat the Post-Office, whatever rate of postage is imposed," (Report of 1838, Evid. 2883.) But in 1843, in answer to the question, "Has the introduction of the Penny Post knocked up the illicit conveyance of letters?" he answers, "I do not know; but I have always considered that it would as a matter of course." (Report of 1843, Evid. 1104.) The use of stamps is still optional, but there appears no necessity for its being so, as every post-office ought to be sufficiently supplied with them; and since every letter passing through the Post-Office must be posted, there could be no hardship in compelling no other positive fact to produce, beyond my having attempted the partial working of such a scheme in the case of a single experiment, for which I invited (through the local journals) the co-operation of not less than fifty farmers. I livery, is needlessly cumbrous, however ex- have circulated 100 copies of a printed schedule, pedient it may have been at the beginning and could have circulated more, if I had had the purchase of a stamp previously to the posting of the letter. The mixed mode of collecting the postage partly in money prepaid, partly in stamps, and partly on de of the new system. On this point as on others, the Post-Office authorities either disagree with the facts or differ among them selves. "Colonel Maberly (in 1838) being asked what effect compulsory prepayment, as a substitute for all other modes of payment, would have in reducing the expenses of the Post-Office, answered, Very little: and on the other hand, being questioned as to what difference in expense would arise from the treble mode of collecting the tax, (the plan now in use,) answered, 'Scarcely any." "Mr. Bokenham in 1843: The abolition of money prepayment would be a great convenience to his department. (Report of 1843, Evid. 2511.) "Recent notice at the Manchester Post-office: The public would facilitate the business of this office by using stamps instead of paying money." Upon the social and commercial influences which have resulted from cheap postage it seems superfluous to speak at any length: there is hardly a person in the kingdom that does not benefit by them, whatever be his station in life. The smallest commercial transactions are managed through the post. The advantages to science, literature, and every branch of social development and intellectual culture, are inestimable; large associations have been actually created by the new system. Mr. Hill observes : them, containing directions how the proposed experiment should be tried. The mere suggestion of this scheme has involved me in a correspondence which I never could have sustained if it had not been for the penny postage. To the importance of the penny postage to those who cultivate science, I can bear most unequivocal testimony, as I am continually receiving and transmitting a variety of specimens, living and dead, by post. Among them you will laugh to hear that I have received three living carnivorous slugs, which arrived safe in a pill-box. This very day I have received from a stranger (by post) a parcel of young wheat-plants attacked by the larvæ of some fly; and these having arrived in a living state, I can as readily hand them over to an entomologist for his inspection and remarks.* That the penny postage is an important addition to the comforts of the poor laborer, I can also testify. From my residence in a neighborhood where scarcely any laborer can read, much less write, I am often employed by them as an amanuensis, and have frequently heard them express their satisfaction at the facility they enjoy of now corresponding with distant relatives. As the rising generation are learning to write, a most material addition to the circulation of letters may be expected from among this class of the population; indeed, I know that the pens of some of my villageschool children are already put into requisition by their parents. A somewhat improved arrangement in the transmission of letters to our villages, and which might easily be accomplished, would greatly accelerate the development of country letter-writers. Of the vast domestic comfort which the penny postage has added to homes like my own, situate in retired villages, I need say nothing. "I remain, dear Sir, yours very faithfully, "To Rowland Hill, Esq." "Mr. Stokes, the honorary secretary to the Parker Society, (a society that contains among its members nearly all the dignitaries of the Church, and many other influential men, among whom is the present Chancellor of the Exchequer,) states that the Society could not have come into existence but for the penny postage. It is for reprinting the works of the early Eng- The present number of letters appears to lish Reformers. There are 7000 subscribers. be about three-fold the number in 1837. At It pays yearly from 200l. to 300l. postage. It that time the chargeable letters were estialso pays duty on 3000 reams of paper." Professor Henslow gives so interesting a picture of the operation of the Penny Postage that we must find room for it. mated at 75,000,000 per annum. In January 1843 (the date of the latest return), the number of letters was at the rate of 221,000, 000 per annum. We cannot resist showing what were the expectations of the Post-Office authorities in respect of the increase of the number of letters : * "It is curious," says Mr. Hill, "to notice the feelings with which the officials regard such uses of the Post-office. Had they considered that, ex "Hitcham, Hadleigh, Suffolk, 16th April, 1843. "Dear Sir, The observation to which you refer in one of my letters to the farmers of Suffolk, respecting the advantages of the penny postage, relates to a scheme of experimental cooperation for securing the rapid progress of agricultural science, which I have been suggest-cept for scientific purposes, no one is likely to pay ing to the landed interest. The practicability at the rate of 2s. 8d. a pound for the conveyance of of such a scheme depends entirely upon the ad- fish, much needless anger would have been spared." vantages offered by the penny postage. I have (Evid. 2654-63.) "Relative to increase in the number of letters, and the fiscal effects of the change, Colonel Maberly was of opinion that the poor were not disposed to write letters; and Mr. Lawrence, the assistant-secretary, thought there were quite as many letters written then as there would be even if postage were reduced. Again, Colonel Maberly, after stating that he 'considered that every experiment that had been made (in the Post-Office) had shown the fallacy of Post-master-General : age at all would not be doubled in a year." Then there was a Superintendent of Mails at the time, who estimated that the adoption of a Penny Postage would cause a loss of from 7d. to 8d. a letter, which upon being calculated proved to be a loss of more than whatthe Post-Office actually received! Mr. Hill thus sums up the blunders of the late Mr. Hill's plan, and that it appeared to him a most preposterous plan, utterly unsupported by facts, and resting entirely on assumption,' added, 'If postage were reduced to one penny, I think the revenue would not recover itself for forty or fifty years.' He also gave it as his opinion, that in the first year the number of letters would not double, even if every one were allowed to frank." The effect of the Penny Postage on the revenue deserves more than a passing notice, for it has been made the subject of great misrepresentation. We shall first state the facts, which the reader will do well to bear in mind. The gross annual revenue in 1842 was 1,578,000l. or 67 per cent. (two-thirds) of the revenue for 1837, which was adopted as a standard by the Post Committee. The net revenue in 1842 was 600,000l., whilst in 1837 it was 1,640,000l. The cost of management has risen from 757,000l. in 1839, to 978,000l. in 1842, or 221,0007. But the greater part of this increased expenditure has nothing to do with the Penny Postage. Upwards of half of it arises from the substitution of railway for common road conveyance, compensations for loss of fees occasioned chiefly by this change of locomotion, expenses of transit, foreign postage, etc. Making these deductions, the expenses have increased about 15 per cent., whilst the increase of Post-Office business, letters and newspapers combined, has been about 100 per cent., or, counting letters only, nearly 200 per cent. For several years before the "The hopelessness, too, of obtaining a revenue from a penny rate, is supported by a statement of Lord Lichfield, who had ascertained that each letter costs the Post-Office 'within the smallest fraction of 24d.,' by which calculation, if we could suppose the cost per letter to remain the same, the penny rate must entail an expense twice as great as the amount of its produce. Again, Lord Lichfield stated as follows:- He (Mr. Hill) anticipates only an increase of five and a quarter fold: it will require twelve-fold on our calculation, and he does not say that he expects any thing to that extent. Therefore, if it comes to that point, which is right, and which is wrong, I maintain that our calculations are more likely to be right than his.' It is now demonstrable that the increase necessary to sustain the gross revenue, the point in debate, is little more than four-fold. On the twelve-fold theory, however, Lord Lichfield said, in his place in Parliament, The mails will have to carry twelve times as much in weight (on Mr. H ll's plan), and therefore the charge for transmission, instead of 100,000/., as now, must be twelve times that amount. So unfavorable, indeed, were the late Postmaster-General's views on the whole subject, that he said, 'Were the plan adopted, instead of a million and a half of money being added to the revenue, after the expenditure of the establishment was provided for, he was quite certain that such a loss would be sustained as would compel them to have recourse to Parliament for money to maintain the establishment. "-(72, p. 21.) Let us now see who has turned out to be right and who wrong. Mr. Hill says : "I calculated on eventually obtaining the same gross revenue as in 1837, and that to affect Penny Postage was introduced, there was a this a five-fold increase of letters would suffice. gradual annual increase in the Post-Office ex- Of course this calculation, which had no referpenditure. Comparing the expenditure of ence to immediate consequences, was founded 18:39 with that of 1836, three years before the upon the supposition, yet unrealized, that the reduction, the increase was 27 per cent. Comparing the expenditure of 1842 with that of 1839, three years after the reduction, the increase was only 24 per cent. Be the increased expenses as they may, there is still a net revenue from the Post-Office of 600, 0001. a year. Let us see what were the official anticipations before the reduction of postage? We have already quoted the Sec plan was to be adopted in its integrity. It rested also upon the circumstances of the country remaining in their ordinary state, and neither did nor could anticipate the season of calamity which has ensued. In 1842, however, the gross revenue was fully two-thirds the former amount, and it is steadily increasing. Again, there is now no doubt that little more than a four-fold increase of letters will suffice. That such is the fact will be shown by the following state ment: retary's rash prediction, "that if the postage "The gross revenue of 1842 was 1,578,0001. were reduced to one penny, the revenue which must be increased by 48 per cent., in orwould not recover itself for forty or fifty der to raise it to an equality with the gross revyears," and "that the letters without any post- | enue of 1837, which in the Committee was taken [JUNE, as a standard. The number of letters delivered At least one-half of the cost of these packin the United Kingdom, in 1842, was about 209, ets has no reference at all to Post-Office ob000,000, which increased by 48 percent., becomes 309,000'000, or little more than four times the jects, and the adoption of steamers to the number of chargeable letters delivered in the United Kingdom before the reduction of the rate. "In January 1843 (the date of the last return), the number of letters delivered was at the rate of about 221,000,000 per annum, or almost exactly three times the former number. "Finally, I calculated that in consequence of the simple and economical arrangements proposed, the five-fold increase in the number of letters would involve an addition of not more than 300,000l. per annum to the expenses of the PostOffice, consequently that the net revenue would fall from about 1,600,000l. to about 1.300,000l.; and I gave a table (Post Office Reform, 3rd edit., p. 67) showing that the net revenue which might be anticipated from a three-fold increase of letters was 580,000l. It appears that from a somewhat less than three-fold increase in 1842, the net revenue was 600,000l., even under the present costly management."-(72, pp. 21, 22.) Having been disappointed by obtaining so great a net revenue as 600,000l. a year, the Post-Office honorably endeavored to annihilate it, in accordance with its wishes and prophecies; accordingly a return was East and West Indies and to America, in the full knowledge that no conceivable increase of correspondence would cover the expense, cannot be fairly attributed to the Post-Office. The West India packets were established at a cost of 240,000l. per annum, while the utmost revenue expected from letters was only 40,0001. "It is not fair to charge 240,0007. to the Post-Office quoad the Post-Office for the conveyance of letters." (Colonel Maberly, Evid. 1437.) The cost of the Irish packets too is needlessly high for any Post-Office purpose, but rendered so to suit the convenience of the government of both countries. Upon the fairness of charging the whole expenses of the packets to the Post-Office revenue, for the purpose of comparing the net revenue under the Penny Postage with the net revenue before its introduction, official minds disagree. The Postmaster-General thinks the comparison "perfectly just:" (Evid. 2978 -2991,) whilst his Secretary " would not have included the cost of the packets, and would not framed for the misguidance of the Chan- have thought it fair;" (Evid. 1441.) and hethus cellor of the Exchequer, by which it was complacently throws off the responsibility made to appear that the Post-Office, instead of the deed, "If I am asked whether the of affording a net revenue of 600,000/., is Post-Office would have put in the expense of actually exceeding its receipts by 10,000l. a year. This return, which is distinguished throughout the parliamentary report as the "fallacious return," accomplishes this apparent result by the innovation of charging to the Post-Office a sum of 612,8507., being the whole cost of the packets which twenty years ago in great part were transferred to the Admiralty, were wholly disunited from the Post-Office in 1837, and have ever since figured in the Admiralty accounts, until the appearance of this "fallacious return." It is true that these packets carry letters, the packets in the Post-Office returns, unless they had been directed to do so, I should say certainly not." (Evid. 1424.) The object of this "fallacious return" was to prove, if possible, that the Penny Postage had ruined the revenue. Lord Lowther, imagining that all revenue was derived from foreign and colonial postage, directed a return to be made which was to prove his foregone conclusion. It was framed by two clerks, who seem to have gone abroad very conveniently. (Evid. 1281, 1625-8.) "I have told the honorable member before, and but it is no less true that the vessels are of a I repeat it again," says Colonel Maberly, size and character suitable for other far less "that the return was prepared under Lord peaceful objects than the transmission of Lowther's orders by a clerk, whoın he has correspondence; and, though they exist since appointed surveyor in Canada, and it under the name of Post-Office packets, they was checked by another clerk who was constitute in fact an armed marine, to be then in the Accountant-general's office, and used in times of war, and are liable, by who has been appointed surveyor at New the very terms of their contract, to be so Brunswick; those clerks therefore are not employed. The Post-Office admits this: "When the late Chancellor of the Exchequer made the arrangement, he had in contemplation the creation of a fleet of steamers which might be available for the naval service of the country in case of war, and that that fleet would be kept up at a much less cost to the country than under the Admiralty." (Colonel Maberly, Evid. 1449.) here." (Evid. 1281.) The return proves with its own figures that 103,000l. is the net revenue on inland or penny letters, whilst there is a deficiency of 113,000l. on foreign and colonial letters, (App. p. 232); both which statements have been proved to be curiously incorrect. Of course the Committee was inquisitive on the subject; for Mr. Hill, upon the publication of the return, had |