Chapter XXVIII: Appendix: (H)

The following important document, published by Sir Rowland Hill on his resignation of the Secretaryship of the Post-Office, and circulated privately, is deserving of careful study, as giving the results of the penny-postage reform up to the latest date:--

RESULTS OF POSTAL REFORM.

Before stating the results of postal reform, it may be convenient
that I should briefly enumerate the more important organic
improvements effected. They are as follows:--

1. A very large reduction in the rates of postage on all
correspondence, whether inland, foreign, or colonial. As instances
in point, it may be stated that letters are now conveyed from any
part of the United Kingdom to any other part--even from the Channel
Islands to the Shetland Isles--at one-fourth of the charge
previously levied on letters passing between post towns only a few
miles apart;[216] and that the rate formerly charged for this slight
distance, viz. fourpence--now suffices to carry a letter from any
part of the United Kingdom to any part of France, Algeria included.

2. The adoption of charge by weight, which, by abolishing the charge
for mere enclosures, in effect largely extended the reduction of
rates.

3. Arrangements which have led to the almost universal resort to
prepayment of correspondence, and that by means of stamps.

4. The simplification of the mechanism and accounts of the
Department generally by the above and other means.

5. The establishment of the book-post (including in its operation
all printed and much MS. matter) at very low rates, and its modified
extension to our colonies and to many foreign countries.

6. Increased security in the transmission of valuable letters
afforded, and temptation to the letter-carriers and others greatly
diminished, by reducing the registration fee from 1_s._ to 4_d._, by
making registration of letters containing coin compulsory, and by
other means.

7. A reduction to about one-third in the cost--including postage--of
money-orders, combined with a great extension and improvement of the
system.

8. More frequent and more rapid communication between the metropolis
and the larger provincial towns, as also between one provincial town
and another.

9. A vast extension of the rural distribution--many thousands of
places, and probably some millions of inhabitants, having, for the
first time, been included within the postal system.

10. A great extension of free deliveries. Before the adoption of
penny postage many considerable towns, and portions of nearly all
the larger towns, had either no delivery at all, or deliveries on
condition of an extra charge.

11. Greatly increased facilities afforded for the transmission of
foreign and colonial correspondence, by improved treaties with
foreign countries, by a better arrangement of the packet service, by
sorting on board, and other means.

12. A more prompt despatch of letters when posted, and a more prompt
delivery on arrival.

13. The division of London and its suburbs into ten postal
districts, by which, and other measures, communication within the
twelve-miles circle has been greatly facilitated, and the most
important delivery of the day has, generally speaking, been
accelerated as much as two hours.

14. Concurrently with these improvements, the condition of the
_employés_ has been materially improved; their labours, especially
on the Sunday, having been very generally reduced, their salaries
increased, their chances of promotion augmented, and other important
advantages afforded them.

RESULTS.

My pamphlet on "Post-Office Reform" was written in the year 1836.
During the preceding twenty years, viz. from 1815 to 1835 inclusive,
_there was no increase whatever in the Post-Office revenue, whether
gross or net_, and therefore, in all probability, none in the number
of letters; and though there was a slight increase in the revenue,
and doubtless in the number of letters, between 1835 and the
establishment of penny postage early in 1840--an increase chiefly
due, in my opinion, to the adoption of part of my plan, viz. the
establishment of day mails to and from London--yet, during the whole
period of twenty-four years immediately preceding the adoption of
penny postage, the revenue, whether gross or net, and the number of
letters, were, in effect, stationary.

Contrast with this the rate of increase under the new system, which
has been in operation during a period of about equal length. In the
first year of penny postage the letters more than doubled; and
though since then the increase has, of course, been less rapid, yet
it has been so steady that, notwithstanding the vicissitudes of
trade, every year, without exception, has shown a considerable
advance on the preceding year, and the first year's number is now
nearly quadrupled. As regards revenue, there was, of course, at
first a large falling off--about a million in gross, and still more
in net revenue. Since then, however, the revenue, whether gross or
net, has rapidly advanced, till now it even exceeds its former
amount, the rate of increase, both of letters and revenue, still
remaining undiminished.

In short, a comparison of the year 1863 with 1838 (the last complete
year under the old system) shows that the number of chargeable
letters has risen from 76,000,000 to 642,000,000; and that the
revenue, at first so much impaired, has not only recovered its
original amount, but risen, the gross from 2,346,000_l._ to about
3,870,000_l._ and the net from 1,660,000_l._ to about
1,790,000_l._[217]

The expectations I held out before the change were, that eventually,
under the operation of my plans, the number of letters would
increase fivefold, the gross revenue would be the same as before,
while the net revenue would sustain a loss of about 300,000_l._ The
preceding statement shows that the letters have increased, not
fivefold, but nearly eight and a half fold; that the gross revenue,
instead of remaining the same, has increased by about 1,500,000_l._;
while the net revenue, instead of falling 300,000_l._, has risen
more than 100,000_l._

While the revenue of the Post-Office has thus more than recovered
its former amount, the indirect benefit to the general revenue of
the country, arising from the greatly increased facilities afforded
to commercial transactions, though incapable of exact estimate, must
be very large. Perhaps it is not too much to assume that, all things
considered, the vast benefit of cheap, rapid, and extended postal
communication has been obtained, even as regards the past, without
fiscal loss. For the future, there must be a large and
ever-increasing gain.

The indirect benefit referred to above is partly manifested in the
development of the money-order system, under which, since the year
1839, the annual amount transmitted has risen from 313,000_l._ to
16,494,000_l._--that is, fifty-two fold.

An important collateral benefit of the new system is to be found in
the cessation of that contraband conveyance which once prevailed so
far that habitual breach of the postal law had become a thing of
course.

It may be added, that the organization thus so greatly improved and
extended for postal purposes stands available for other objects, and
passing over minor matters, has already been applied with great
advantage to the new system of savings' banks.

Lastly, the improvements briefly referred to above, with all their
commercial, educational, and social benefits, have now been adopted,
in greater or less degree--and that through the mere force of
example--by the whole civilized world.

I cannot conclude this summary without gratefully acknowledging the
cordial co-operation and zealous aid afforded me in the discharge of
my arduous duties. I must especially refer to many among the
superior officers of the Department--men whose ability would do
credit to any service, and whose zeal could not be greater if their
object were private instead of public benefit.

ROWLAND HILL.

HAMPSTEAD,
_Feb. 23rd, 1864_.

R. CLAY, SON, AND TAYLOR, PRINTERS, LONDON.

FOOTNOTES:

[216] When my plan was published, the lowest General Post rate was fourpence; but while the plan was under the consideration of Government the rate between post towns not more than eight miles asunder was reduced from fourpence to twopence.

[217] In this comparison of revenue, the mode of calculation in use before the adoption of penny-postage has of course been retained--that is to say, the cost of the packets on the one hand, and the produce of the impressed newspaper stamps on the other, have been excluded. The amounts for 1863 are, to some extent, estimated, the accounts not having as yet been fully made up.

* * * * * *

Transcriber's note:

A missing reference to footnote [83] was inserted.

The following is a list of changes made to the original.
The first line is the original line, the second the corrected one.

been the permanent arrangements for the transmision of the
been the permanent arrangements for the transmission of the

Nothwithstanding the losses he must have suffered
Notwithstanding the losses he must have suffered

wafer or wax, or even if totally unfastened by either. "At
wafer or wax, or even if totally unfastened by either. At

rusely no argument against a State monopoly of letter-carrying.
surely no argument against a State monopoly of letter-carrying.

Rev. Sydn Smith, Mr. McCullagh.
Rev. Sydney Smith, Mr. McCullagh.

it might be desirable, but impracticable" (10,939). "Most
it might be "desirable, but impracticable" (10,939). "Most

offices; (3) a hourly delivery of letters instead of one every
offices; (3) an hourly delivery of letters instead of one every

vender, and how trade--retail at any rate--is fostered by it.
vendor, and how trade--retail at any rate--is fostered by it.

the parties concerned, but the depositor run the risk of
the parties concerned, but the depositor ran the risk of

Thus, letters addressed to Newport should alway give the
Thus, letters addressed to Newport should always give the

A singular accident befel one of these letter-boxes (1862) in Montrose.
A singular accident befell one of these letter-boxes (1862) in Montrose.

every town and village in the kingdom, having any correpondence
every town and village in the kingdom, having any correspondence