Chapter VII: Introduction (4)

Further consideration of the proposals was interrupted by the dissolution of the Chamber. In the next session, M. Caillaux, Minister of Finance, adopted the report of the Commission, and in April 1878 the rate for letters was reduced to 15 centimes for each 15 grammes, or fraction of 15 grammes. The general rate was thus brought to the level of the local rate, which now disappeared.

The results of this reform were eminently satisfactory. The total number of letters, which had during the years 1872 to 1877 increased by only 4,365,412, or some one and one-third per cent. per annum, increased from 318,659,158 in 1877 to 403,853,626 in 1879, or 26 per cent. in two years, and from 1879 to 1889 the rate of increase was 6.6 per cent. per annum. The Government had estimated that the reduction would involve a loss to the revenue of some 15 millions for the first year. The actual loss was 15,323,571 fr.

These figures are figures of gross revenue. The figures for net revenue are less satisfactory, both in character and in the amounts indicated. Their character is unsatisfactory because the expenses of the postal and telegraph departments were not separate; and the figures for net revenue therefore represent the net revenue on the whole service, both postal and telegraph, and not merely for the postal traffic alone. At this time, however, the telegraph business was small comparatively, and the figures indicate generally the result of the reform. In 1877 the net revenue was 47,706,293 fr. In 1878 it fell to 29,343,953 fr., and in 1879 to 21,084,699 fr., from which date there was a gradual, but steady, recovery. In 1888 it had reached 48,811,146 fr. 25, an amount higher than that of 1877, and in 1889 the net revenue passed 53 millions, a sum never before reached in France.[208]

The rate fixed in 1878, although marking a considerable reduction of the previous rate, was felt to be unsatisfactory. One of the principal reasons invoked as justifying the suggestion for a further reduction of the rate, was that the number of letters actually posted in France was much less than the number posted in other countries. This circumstance was attributed partly to the high initial rate, and partly to the fact that the progression of charge was directly proportionate to the increase of weight. The initial rate was in point of fact much higher than the corresponding rate in other countries. The Press often called attention to the unfavourable position in France in this respect, and developed public opinion strongly in favour of a reduction. Representations from business houses, chambers of commerce, and _conseils g['e]n['e]raux_ were constantly received by Parliament. The question was frequently advanced in the Legislature, and numerous suggestions for legislation were put forward by members. Thus, in 1897 M. Chassaing proposed, among other reforms, the reduction of the letter rate to 10 centimes for each 15 grammes. Although admitting the desirability of granting the boon, the Budget Commission were unable to recommend that course on account of the serious effect on the net revenue which must be anticipated.[209]

In 1900 M. Millerand, Minister for Commerce, Industry, Posts, and Telegraphs, in a report to the President,[210] recommended a reduction of the rate on the grounds that it would give satisfaction to the public, and, at the same time, increase appreciably the number of letters transmitted by post. He suggested the following scale:--

Letters not exceeding 15 grammes 10 centimes
From 15 to 50 grammes 15 "
Over 50 grammes 5 " for each
50 grammes, or fraction
of 50 grammes

Such a reduction would bring the rate of letter postage down to the level of the existing rate for postcards; and M. Millerand regarded the reduction of the latter rate to 5 centimes as an inevitable corollary, and a reform which might safely be made.[211] Assuming this further reduction, and applying the proposed reduced rates to the statistics of existing traffic--ignoring both the probable increase of traffic and the increase of expenses which would result from the increase of traffic--it was estimated that the loss to revenue would be--

fr.
On single letters 34,071,584
On heavy letters 4,707,836
On charged letters 404,787
On postcards 2,569,787
----------
Total 41,753,994

The reduction of revenue would be 35.6 per cent. of the total yield.

The reform of 1878 had entailed an increase of working expenses of about 37 millions (5-1/2 millions of capital cost, and 31-1/2 millions of annual expenses). The increase of traffic from the proposed reform would, however, be 17 per cent. less than the increase after 1878 (because the reduction was five-fifteenths of the rate instead of six-fifteenths as in 1878), and the increase of cost would therefore be proportionately less. Calculated on this basis, the increase was estimated at 31,037,829 fr. (4,920,000 fr. capital expenses and 26,117,829 fr. annual).

In all, therefore, the reduction would involve a loss of revenue of 41,753,994 fr., and an increase of expense of 31,037,829 fr.--a total loss of 72,791,823 fr.[212]

In order as far as possible to replace this loss, M. Millerand proposed to abolish the special tariff for _papiers d'affaires_ and subject them to letter postage, and also to increase the rates on small packets of printed matter, other than newspapers and periodicals.[213] The deficit to be looked for in the first year would then be 16,233,833 fr., and might be estimated to disappear in the eighth year. The gross revenue would recover in the third year. The Government was not, however, prepared to sacrifice the revenue, and the proposal was deferred.

The question still continued to receive attention in the country and in Parliament.[214] At length, in view of the persistent agitation,[215] the Government in 1906, on the recommendation of the Budget Commission, resolved to face the inevitable loss of revenue and make the reduction. The result was in many ways satisfactory. The number of packets sent at the letter rate of postage increased very considerably. A large quantity of traffic was diverted from the cheaper open post to the letter post, in order to obtain the advantage of secrecy, some large business houses sending at the letter rate millions of communications which would, under the old rates, have been sent by the open post. In 1905, before the reduction, the number of packets passing by post was 2,371,000,000. In 1907 the number had increased to 2,720,000,000, and in 1908 to 2,802,000,000. The loss of net revenue was nevertheless very great. The gross revenue was diminished by some 12 millions, and the expenses increased by 21-1/2 millions. The net revenue fell from 91,750,000 fr. in 1905 to 59,750,000 fr. in 1906.

The reduction of 1906 placed France in a position of equality with most other nations as regards the initial rate for letters. Indeed, the French rate was slightly lower than that in several other countries. Thus, the equivalent of the German and Austrian initial rates was 12.2 centimes, of the Swedish 13.8 centimes, and of the English 10.5 centimes. But as regards the weight allowed for the initial rate, and also as regards the rates for heavier letters, the position was still unsatisfactory. The maximum weight allowed to pass at the initial rate was 15 grammes, and the rate for a letter of 250 grammes was 1 fr. 70.[216] In Germany the rate for a letter of that weight was 24.4 centimes, in England 26.2 centimes, and in Switzerland 10 centimes. Attention was therefore now directed to a modification of the scale of rates for the heavier letters. The Budget Commissions of 1908 recommended the reform.[217] In their view the unfavourable comparison with other countries in this respect could be justified neither by logic nor by regard to the interests of the Treasury. Logically, a rate of postage ought to be proportionate to the cost of the service performed, and this was far from varying in accordance with the weight of postal packets.[218]

The number of heavy letters was, moreover, small proportionately, and the effect on the Treasury of a reduction of rate for such letters would be slight. Indeed, it was thought an increase of revenue might be anticipated, since, in addition to the natural increase resulting from the reduction, there would, as in 1906, be a tendency for many packets sent by the open post to be sent under the advantage of the closed post. It was urged that the reduction should be accompanied by certain modifications in the minor rates, which would lead to a desirable simplification of rates: the special rate for commercial papers should be abolished, and the general rate for postcards should be made 5 centimes; the whole of the reforms being carried out at the same time, in order that the increases might be seen in their proper relation to the compensating reductions. Otherwise the public might forget the benefits, and resent the increases. The net loss of revenue was estimated at 4 million francs.[219]

The law of the 8th April 1910 increased the unit of weight for letters to 20 grammes. For the heavier letters the rates were: from 20 to 50 grammes, 15 centimes; from 50 to 100 grammes, 20 centimes; and so on, adding 5 centimes for each 50 grammes or fraction of 50 grammes up to the maximum weight allowed, viz. I kilogramme. The special rate for commercial papers over 20 grammes in weight was abolished. The privileged rate was retained for packets weighing not more than 20 grammes, Parliament refusing to agree to its total abolition.

NOTE.--On the 1st January 1917, as a war measure, the general
letter rate was raised from 10 centimes to 15 centimes.

* * * * *

LETTER POST IN GERMANY[220]

A system of messengers (_Boten-Anstalten_) existed in Brandenburg as early as the first half of the sixteenth century, and in 1604 a master of the messengers (_Botenmeister_) was appointed, whose duty was to control the sending and receiving of all despatches.[221] The incorporation of Prussia and Cleve in the Mark of Brandenburg rendered necessary the improvement and extension of the messenger service, and in 1614 the Elector John Sigismund appointed twenty-four messengers, who were paid at a fixed rate, according to the length of the route traversed. Thus, for the Strasburg, Cologne, and D[:u]sseldorf routes the payment was 10 thalers, and for the Cracow, K[:o]nigsberg, and Mainz routes, 8 thalers. Once a year they were supplied with an outfit of clothing. When not travelling, they were required to report themselves every hour to the _Botenmeister_, and to hold themselves in readiness at all times to set out if necessary without delay. The journeys were made according to set times, and the messengers, who carried both letters and parcels, were provided with a way-bill, on which the times of arrival at and departure from the various points were entered. The _Boten-Anstalten_ really comprised two kinds of undertakings--the so-called _Post-boten_ and the _Landkutschen_. The former were the ordinary messengers; the latter a kind of stage-coach system, which carried both passengers and merchandise.[222] The rates of charge were based on the actual length of the journey, and also upon any accidental circumstance which might have a relation to the question, such as high general prices.[223]

In 1634 a riding post between C[:o]ln a. d. Spree and Crossen was established, and shortly afterwards a similar post to Glogau, in order to provide a means of communication between the Government and the Swedish Army. For the same purpose in 1635 a daily messenger service (_Botenpost_) was established from Tangerm[:u]nde to Berlin, and in 1646 a military post (_Dragonerpost_) was established between Berlin and Osnabruck, in connection with the conference preceding the signing of the Treaty of Westphalia.

All these services were for the conveyance of the Court and Administrative correspondence only. The _Botenmeister_ nevertheless frequently undertook the conveyance of private letters, for which special charges were made, and often the messengers themselves clandestinely carried private letters.

In 1618 the _Botenmeister_ of Berlin established a special messenger route for the conveyance of private letters (_Ordinari-Boten-Cours_) from Berlin to Leipzig and Hamburg, and at about the same time the _Botenmeister_ of K[:o]nigsberg established a similar route to Danzig. In other large towns messenger services for the conveyance of ordinary letters were established by private individuals, but these services were often inefficiently conducted. The messengers followed no fixed route, and the services were irregular and unsafe. They were at best only makeshifts.

As the result of a variety of circumstances, the establishment of regular posts became a necessity in the time of the Great Elector. The extension of the Brandenburg territory, and the political developments, rendered it desirable to adopt all possible means for binding together the entire territory. Regular posts would also contribute to the national welfare and assist industry and commerce, although there was little prospect that at the outset they would prove profitable.[224] In 1646 a riding post between K[:o]nigsberg and Danzig was established; shortly afterwards a post between Berlin and K[:o]nigsberg, and thereafter others. In 1649 the control of all the posts was definitely assumed by the Electoral administration.[225]

In general the posts went twice weekly; stages were erected for the exchange of horses and postilions. At first, postilions were changed every twelve (German) miles,[226] and horses every four (German) miles. Later, the stages for the changing of horses were reduced to three miles. The usual speed of the posts, travelling day and night, was one mile an hour, and punctuality was insisted on.[227] The journey from Berlin to K[:o]nigsberg occupied four days, and that from K[:o]nigsberg to Cleve ten days.[228] There was at first no delivery service, and all letters must be obtained at the post office, where the people were consequently in the habit of congregating to await the arrival of the post.[229] The postage was retained by the Postmaster as the remuneration for his services. For the actual management and conduct of the service he drew on the State funds to the extent of some 6,000 thalers annually, and all official despatches were consequently conveyed free. This charge diminished, however, with the years, and in course of time the service came to yield a profit to the State. In the Postmaster's patent granted in 1661 it was provided that a portion of the proceeds of postage should be accounted for to the State treasury.[230]

The rates of postage were at first fixed according to ancient custom, but they were on several occasions reduced. The postage on a letter not exceeding half an ounce in weight sent from Berlin to Wutzkow, from Breslau to Wutzkow, or from Berlin to Frankfort, was 2 groschen, and from Berlin to Magdeburg, 1-1/2 groschen.[231]

With the growth of commerce and the establishment of the travelling post and parcel post, the service became more and more successful financially. In 1695 the expenses represented some 50 per cent. of the gross revenue. By 1712 they had fallen to some 41 per cent. The gross revenue was at the same time rapidly increasing. The net revenue, which was, of course, increasing still more rapidly, was in 1695 about 62,000 thalers, and by 1712 had risen to some 137,000 thalers.

The rates of postage were modified in 1699, and again in 1712; but as the old rates were retained as the basis of both revisions, the charges remained for fifty years substantially unchanged. A letter from Berlin to Hamburg now cost 2-1/2 groschen, to Bremen 3 groschen, to Dresden 2 groschen, to Frankfort-on-Main 3 groschen, and so on.

During the next fifty years prices were gradually, but steadily, rising in Prussia. The Seven Years' War produced a sudden and very considerable rise in the prices of all agricultural products. And not only did the purchasing power of money fall owing to the scarcity and high price of provisions, but its value also decreased through depreciation.[232] The cost of conducting the postal service rose correspondingly, and the financial difficulties were increased owing to the falling off of traffic consequent on the war. At the end of 1761 the King was asked to agree to a contribution in aid, but assistance was not forthcoming. Something had to be done; and on the 27th January 1762, in common with the general increase of taxation, the rates for parcels and for value letters were increased 100 per cent.; the travelling post rates, which varied from 3 to 4 groschen per mile, were increased by 1 groschen per mile; and the fees for guides, which were about 6 groschen per station, by about 2 groschen per station. The letter rate remained unchanged.[233]

In the early part of 1766 a new tariff was introduced. The rates for parcels fixed in 1762 were maintained, and new and higher rates for letters were introduced. The increase in the general rates varied from about 15 per cent. to about 50 per cent. The minimum, which for letters passing between many neighbouring places had formerly been only 6 pfennigs, was increased to 1 groschen.

The raising of the rate led to a large amount of fraud, and caused much public inconvenience. The revenue did, indeed, increase in the first year quite appreciably; but in the second and third years, instead of the normal yearly increase, there was a notable decrease. Complaints against the new rates were widespread, and it was alleged that the increased charges embarrassed commerce. In 1770 the rates for heavy letters, printed matter, and documents were reduced again to those of 1712. The rates had previously been based on a variety of considerations,[234] but this miscellaneous basis was now put aside and a uniform system established, the same letter rate being applied throughout the State.

The coinage edict of 1821, by which the thaler was divided into 30 silver groschen instead of 24 groschen as previously, made necessary an alteration of the postage charges, and amended rates were established on the 1st January 1822. No account was taken of a less amount than a half-groschen, and odd amounts were reckoned at the next half-groschen above, with the result that in certain cases the rate became higher than formerly.

A reduction of the rates of postage was in contemplation, but while the discussions on the proposals were in progress, the State finances became somewhat straitened. It became necessary to look about for fresh revenue, and a Commission appointed to consider the question recommended that more revenue should be obtained from the Post Office. The Postmaster-General pledged himself to bring up the surplus from 700,000 or 800,000 thalers, where it then stood, to a million, and, if possible, to 1,200,000 thalers. Accordingly, in 1824 the rates of postage were revised, and, in general, increased. In many cases the increase was as much as 20 per cent., and the tariff as a whole was the highest ever fixed in Prussia. The chief characteristics of this important change were that letter and parcel rates were reckoned according to the direct distance (_Luftlinie_) between the post offices, and not according to the distance by way of the post routes, or the time occupied on the journey, or any of the other considerations which had previously entered into the reckoning. All special rates for individual routes and places were abolished.

The new rates were, for a single letter not exceeding 3/4 loth (3/8 ounce) in weight--

Up to 2 miles 1 silver groschen
From 2 miles to 4 miles 1-1/2 "
" 4 " 7 " 2 "
" 7 " 10 " 2-1/2 "
" 10 " 15 " 3 "
" 15 " 20 " 4 "
" 20 " 30 " 5 "
and for each 10 miles further, 1 silver groschen more.

A map of distances was prepared, and every post office was furnished with a table compiled from this map, showing the distances between that office and all other post offices in Prussia, together with the corresponding rates of postage.[235] Formerly, direct rates of postage existed only between a limited number of post offices, and letters for any other places were charged an additional rate (_Binnenporto_) in respect of the distance not covered by the ordinary rate. This charge was now abolished. Each post office could calculate the rate to any other post office by means of its table of rates. There was, however, an additional charge (_Landporto_) in the case of places at which there was no post office, but which were situated on the post routes. It was arranged that letters might be despatched to or from such places so long as the post-messenger was not thereby delayed on his journey, and for the forwarding of any such letters to or from the nearest post office the lowest rate of postage was charged, reckoned as from the nearest post office. Letters up to 1 ounce in weight were sent by riding post. Letters exceeding 1 ounce in weight were sent by parcel post (_Fahrpost_), and were charged the corresponding rate, unless the sender expressly requested transmission by riding post.

For the longer distances the rates were higher than previously. The rate for the greatest distance within the Prussian postal territory, which under the old rates was 18 silver groschen for a single letter--that is, for a letter up to 3/8 ounce in weight--was now 19 silver groschen. The reduction was greatest for letters going only short distances. The rate for the shortest distances was reduced from 1-1/2 silver groschen to 1 silver groschen. But the higher rates applied to letters passing between the great centres, and these formed the greater part of the whole number. In addition, the progression of the scale of weights was made very rapid. From the earliest days of the Post Office in Prussia the progression of weight had been by the half-ounce, and this had not been changed even in 1766. The scale was now made--

From 3/8 oz. to 1/2 oz. 1-1/2 times the rate
" 1/2 " 3/4 " twice the rate
" 3/4 " 1 " 2-1/2 times the rate
" 1 " 1-1/4 " 3 "
" 1-1/4 " 1-1/2 " 3-1/2 "
" 1-1/2 " 1-3/4 " 4 "
and so on for each quarter-ounce a half rate more.[236]

The year 1824 was also noteworthy for the experimental establishment in the district of the Frankfort-on-Oder post office of a rural delivery system. This was the first step towards the general extension of the rural delivery throughout Prussia. The experiment was successful, and the system was extended in the following year. For delivery by the rural letter-carriers an additional charge was made for each letter, according to the following scale:--

For distances not exceeding 1-1/2 miles 1 silver groschen
" " " 2 " 2 "
" " " 3 " 2-1/2 "

For the longer distances the rates of 1824 were found to be oppressive for ordinary letters, and burdensome to commerce and literature. Financially also the increase was not a success. For 1824, the last year of the old rates, the surplus was 823,229 thalers, an increase of 100,325 thalers over the surplus of 1823. The surplus for 1825, the first year of the new rates, was 1,121,616 thalers, an increase of 298,387 thalers over the surplus of 1824. Apparently, therefore, the new rates had produced an immediate increase of net revenue. This was, however, not the case. While the actual proceeds of postage in 1824 were 73,152 thalers greater than in 1823, the proceeds of postage in 1825 were only 80,890 thalers greater than in 1824.[237] The increased yield of postage was therefore quite small. And even this small increase disappeared in 1826. For that year the yield of postage was only 40,547 thalers greater than in 1825, and in 1827 there was an actual falling off of 41,942 thalers. The increase of net revenue was therefore attributable to other causes. Thus, for example, in 1825, by some means or other, a reduction of no less than 136,160 thalers was effected in the expenses of the service.

The rates were soon found to need amendment. Changes were made in the subsidiary rates, the rates for commercial papers, for magazines, etc., but the letter rate remained unchanged until 1844, when a considerable reduction was made. The following rates for a single letter (not exceeding 3/8 ounce in weight), were established:--

Not exceeding 5 miles 1 silver groschen
From 5 miles to 10 miles 1-1/2 "
" 10 " 15 " 2 "
" 15 " 20 " 2-1/2 "
" 20 " 30 " 3 "
" 30 " 50 " 4 "
" 50 " 100 " 5 "
For each further 100 miles within the
Prussian administration 6 "

These rates were applied to letters, printed matter sent under band, and letters containing samples of merchandise. It was estimated that this change would reduce the gross receipts from postage by 700,000 thalers, and the net revenue for 1845 was estimated at 700,000 thalers instead of 1,400,000 thalers. The actual decrease in 1845 in the gross receipts from postage was, however, only 302,563 thalers, and the actual falling off in net revenue only 346,208 thalers. The gross revenue soon recovered, and in 1847 exceeded that of 1844.[238]

The Prussian administration, while not prepared to introduce complete uniformity of rate irrespective of distance, were yet desirous of simplifying the rates, and of removing from them any trace of the fiscal tradition, so far as this course could be followed without involving serious sacrifice of net revenue.[239]

In September 1848 the distinction between the letter rate and the rate for printed matter and documents was abolished, and on the 1st October 1848 the following scale of weights for all letters, publications, etc., was introduced, viz.:--

Not exceeding 3/8 oz. 1 rate (i.e. 1 sgr.)
From 3/8 oz. to 1/2 oz. 1-1/2 "
" 1/2 " 3/4 " 2 rates
" 3/4 " 1 " 2-1/2 "
" 1 " 4 " 3 "
" 4 " 8 " 4 "

and over 8 ounces 4 rates, until the charge was less than double parcel rate.

The rates were still based on the old theory of distance. The Prussian administration feared that a complete reform of the rates on the English model would have a disastrous effect on the postal revenue, and so upset the equilibrium of the State finance. They had, of course, the experience of England to guide them, and they had not failed to note the large reduction of net revenue which the adoption of the reform of 1840 had entailed. In the following year, however, a great step was taken in the direction of the new system. By the law of the 21st December 1849 the following simplified rates of postage, to take effect from the 1st January 1850, were established:--

For a single letter not exceeding 1/2 oz. (1 zollloth)--
Up to 10 miles 1 silver groschen
10 miles to 20 miles 2 "
All other distances 3 "

For a letter weighing--
From 1/2 oz. to 1 oz. 2 rates
" 1 " 1-1/2 " 3 "
" 1-1/2 " 2 " 4 "
" 2 " 4 " 5 "
" 4 " 8 " 6 "

and so on, until the rate became less than the parcel rate (1 zollloth = 1-1/8 loth).

The reductions in Prussia were in all cases made with careful regard to the possible financial results. The desire to remove all trace of the fiscal tradition did not extend to a desire to relieve the Post Office of its revenue-producing function, and the actual loss of net revenue which resulted in Prussia from the introduction of cheap postage was much less than the loss in England.[240] The set-back to the revenue consequent on the reduction of 1844 was recovered in 1847; the set-back consequent on the reduction of the rates of value letters and parcels in 1848 (on the average some 66-2/3 per cent.) was recovered in 1852; and that occasioned by the reform of the 1st January 1850 was recovered in 1853. But the reform of 1850, which retained the three distance charges, was far from being a complete reform of the character of that in England.

No change of importance was made in the ordinary letter rate between 1850 and 1860. In the latter year the maximum weight for packets passing by letter post was fixed at half a pound (15 loth).[241] A further step towards simplicity and reduction of the letter rate was taken in 1861,[242] when the weight scale was revised and the three steps established in 1849 abolished, two only being substituted. Letters up to half an ounce in weight were to pass at the single rate, and letters exceeding that weight at double rate. The three distance zones were maintained.

The special fee for delivery which was collected from the addressee by the post office of destination was still in force. It was, of course, in effect, an increase of the normal rate of postage, and as such it lay as a heavy burden on the letter traffic. In the case of packets of printed matter not exceeding half an ounce in weight it amounted to 100 per cent. on the normal rate. It was, moreover, disproportionate to the cost of the service of delivery.[243] Since 1850 the Prussian administration had incessantly urged the abolition of the charge. Special charges for delivery had already been abolished in England, in France, and in other of the larger States. The efforts of the administration were, however, frustrated by the Minister for Finance, who was unable, from regard to the needs of the national exchequer, to abandon the revenue obtained from this source. These financial considerations delayed the abolition of the charge by at least a decade.[244] The existence of the charge was found to be especially unfortunate in regard to foreign letters, since its collection was regarded by foreign administrations as an addition to the ordinary postage and consequently an evasion of the terms of agreements under which foreign rates had been fixed. The charge was ultimately abolished in 1862.[245] In order to avoid inconvenient reduction of revenue, it was arranged that the abolition should be effected gradually: for certain classes of traffic as from the date of the coming into force of the Act, for other classes as from the 1st July 1863, and for the remainder as from the 1st July 1864.

The political events of the years 1864 and 1866 occasioned far-reaching modifications of the postal service in Germany. After the expulsion of Austria from the German league, Prussia took over the administration of the postal service in the duchies of the Elbe. Prussia had also absorbed the kingdom of Hanover. The territory of the Prussian postal administration was thus largely extended; and in addition the Prince of Thurn and Taxis relinquished in favour of the Crown of Prussia the control which he had exercised over the postal service in eighteen States.[246]

The North-German Union was established in 1867, and the postal arrangements for the whole territory of the Union were unified. Up to this time ten independent postal administrations had existed in this territory,[247] and the rates of these administrations differed in various particulars. The Prussian rates were applied temporarily to all postal traffic passing between the old and new Prussian territories, and the rates of the Union service were applied to traffic passing between the territories forming the North-German Union.

The continuance of these conditions was not consistent with a unified administration of the postal affairs of the whole North-German Union, and a reform of the rates became necessary. Germany was in 1867 almost the only one of the great States of the world which still maintained a scale of rates of postage for letters graduated according to distance. Prussia had already repeatedly endeavoured to introduce the principle of uniformity of rate irrespective of distance which had been adopted by all others, or at least to secure further simplification; but advance in this direction had always been hindered by financial considerations.[248] The political developments now opened the way for a thorough reorganization of the rates, and this was achieved by the law of the 4th November 1867. This law, which took effect from the 1st January 1868, established uniform rates for letters, irrespective of distance, of the following amounts--1 sgr. (= 10 pf.) for letters not exceeding half an ounce in weight, and 2 sgr. for all letters of greater weight.

After the refounding of the German Empire in 1870, there was fresh legislation in regard to the Post Office.[249] Among other changes, the limit of weight for the single letter was fixed at 15 grammes, and the limit of maximum weight at half a pound. This law also abolished the charge for rural delivery, a long-desired reform which had been frequently urged upon the Reichstag. In order to assist further the interests of residents in the country, it was arranged that on payment of a monthly fee of 5 sgr. letters might be handed to and delivered by the post messenger, in a closed pouch, at places on his route.

The rates established under this law have remained in operation substantially unchanged up to the present time. The most important modification was made in 1900, when the maximum limit of weight of the single letter was raised from 15 to 20 grammes. Under these rates the letter post has developed continuously. In 1872 the total number of letters passing by post within the territory of the Imperial Post Office was 422 millions, and in 1910 the number had increased to 2,026 millions. As in other countries, the letter rate has proved extremely profitable. The net revenue of the Imperial Post Office in 1872 amounted to 4.7 million Marks, and in 1910 to 88 million Marks. In Germany, however, the railways are State-owned, and the Imperial Post Office is not required to pay to the railways a full equivalent for the services performed. The value of the service performed by the railways on behalf of the Post Office for which no charge is made against the Post Office is not definitely known.[250] The newspaper traffic, the parcel post, and the Imperial Telegraph Service are carried on at heavy loss. The Post Office also performs numerous services, such as those in connection with the National Insurance schemes, for which it receives no monetary credit; and there is no doubt that taken by itself the letter traffic is largely profitable at the existing rates, even when full allowance has been made for all legitimate charges against the service.

NOTE ON RURAL DELIVERY

Until the eighteen-thirties there was no State provision for the letter traffic in country districts. Residents in the country must deliver all their letters at, or fetch them from, the nearest post office, which was done on market-day or by messengers. In 1824 a beginning was made in Prussia by the introduction experimentally of a delivery service at certain post offices. In the following years the number of rural deliverers and the number of posting-boxes in the villages were increased, and a uniform delivery fee (_Landbestellgeld_) of 1 silver groschen instituted. The delivery fee was abolished on the 1st January 1872 (law of 28th October, 1871). This meant the abandonment of a yearly revenue of 1-1/2 million Marks.

In spite of the increase in the number of post offices there were still in 1880 as many as 19 million people, the greater half of the whole nation, and 17,000 localities, outside the limits of the postal service.[251]

In 1880 a great step forward was taken. The number of rural deliverers was largely increased, and also the number of postal stations in the country (_Posth[:u]lfstellen_).[252] A daily delivery was extended to the greater number of places, the rural routes in most cases being so arranged that the deliverer returned by the same route, thereby enabling an answer to be sent the same day to letters received on the outward journey.[253]

* * * * *

II

THE RATE FOR NEWSPAPERS

NEWSPAPER POST IN ENGLAND

In England newspapers have enjoyed special privileges in regard to transmission by post since about the middle of the seventeenth century. The origin of the privilege is to be looked for in the special circumstances under which the early newspapers, and the newsletters and newsbooks from which they were derived, were issued, and the means by which the news included in them was obtained.

At that period the post was the chief means by which news could be collected or distributed. The newsletters were distributed by post,[254] and the news which they contained was for the most part obtained through the agency of the Post Office from correspondents in various parts of the country. It was, indeed, an important part of the function of the Post Office to furnish news to the Court, and to the other departments of State, as well as to the general public.[255]

In 1659 General Monck appointed Henry Muddiman, a journalist who had already issued the _Parliamentary Intelligencer_ and the _Mercurius Publicus_, to write on behalf of the Royalist cause. In consideration of his services he was, after the Restoration, given the privilege of free transmission for his letters.[256] This gave him an advantage over other journalists, and his newsletters and newsbooks became extremely popular. In 1663, however, he was supplanted by Roger L'Estrange, a Royalist who had not to that time been properly recompensed for his faithfulness. L'Estrange was an able writer, who after the passing of the Licensing Act of 1662 had been requested to draw up proposals for the regulation of the Press. As a reward for his services in that connection he was given the office of Surveyor of the Press, his remuneration being the sole privilege of writing and publishing newsbooks and advertisement. L'Estrange also secured the privilege of free postage from Lady Chesterfield, one of the farmers of the Post Office.[257]

L'Estrange's privilege put an end to Muddiman's newsbooks, but in no way interfered with his newsletters and his right to free postage. He was able, therefore, to continue his newsletters, and did so with great success. After the Restoration Muddiman had attached himself to Sir Edward Nicholas, one of the principal Secretaries of State, and his Under-Secretary, Joseph Williamson, from whom he had been in the habit of obtaining part of his news. Williamson was a grasping man, who became jealous of the success of the newswriters, and finding that L'Estrange was unpopular, conceived the idea of getting the control of the whole business into his own hands. He therefore suggested that Muddiman should go to Oxford, where the Court had removed owing to the plague, and publish a new journal in opposition to L'Estrange. While Muddiman was at Oxford, Williamson would obtain by an agent in the Post Office, James Hickes, the names of all his correspondents.[258] The plan was eminently successful, and on the 16th November 1665 the _Oxford Gazette_ appeared, to be transformed a few months later, with its twenty-fourth issue (5th February 1665-6), into the _London Gazette_. Muddiman, however, gained knowledge of Williamson's designs regarding his correspondents, and on the 8th February 1666 left the _Gazette_. Williamson thereupon took control of its publication, and, with the assistance of Hickes, continued its issue. He appointed correspondents in all the leading seaports, and in a few other English towns, and also in continental cities, who were required to furnish accounts of passing events. In return for their services the correspondents received regularly copies of the _Gazette_. Both the letters from correspondents and the _Gazettes_ which were their reward passed free of postage.[259] The regular supply of a copy of the _Gazette_ was so great a privilege that it was often regarded as sufficient wages for a post-messenger or even a deputy-postmaster.[260]

This became a recognized practice before the end of the seventeenth century, and the privilege was regarded as forming part of the ordinary emoluments of the deputy-postmasters.[261] The _Gazettes_ were sent out from London by officers known as Clerks of the Road, under the frank of these officers; and the privilege of franking these _Gazettes_ became extended so that the Clerks of the Road ultimately became entitled to frank any newspaper to whomsoever addressed.[262] In the eighteenth century the Clerks of the Road developed the exercise of their privilege. They accepted subscriptions and undertook the supply of newspapers generally throughout the country. They became, in fact, newsagents. Their newspaper business was something quite apart from their duties as officers of the Post Office. It was conducted in a separate building, by a separate staff, and they found it very lucrative.[263] The postage on newspapers at the letter rate would have been prohibitive. Hence newspapers either went under frank or did not go by post at all, and the whole business of distribution through the post fell into the hands of the Clerks of the Road. Their profits were in part applied to the discharge of certain payments--the salaries of some of the inferior clerks and some charitable payments--in connection with the Post Office.[264]

In 1764 the privilege was explicitly recognized by statute,[265] but the same Act gave a severe blow to the whole system by authorizing members of Parliament to send newspapers free of postage. The members did not confine the exercise of the privilege to newspapers sent by or to them for their own use, but granted orders for free postage to booksellers and newsagents on a liberal scale.[266] The booksellers naturally cut the prices charged by the Clerks of the Road. The charge of the latter had been [L]5 a year for a daily paper, and [L]2 10s. a year for an evening paper. The booksellers in 1770 advertised a charge of [L]4 a year for a daily paper, and [L]2 a year for an evening paper.[267] As a result a large part of the traffic went to the booksellers, and the profits of the Clerks of the Road fell so rapidly that it was soon found necessary to relieve them of the charges on their profits.[268]

Efforts were made to check the abuse of the privilege of franking of newspapers held by members of Parliament under the Act of 1764. An Act of 1802 (42 Geo. III, cap. 63) required not only that the member should sign the newspaper packets, but that the whole superscription, together with the date of posting and the name of the post-town in which the paper was intended to be posted, should be in his handwriting. The member must, moreover, himself be in the post-town where the paper was posted on the date shown on the paper. These regulations were not long maintained. They were probably too stringent to be enforced, and in the course of a few years the appearance on the newspaper or wrapper of any member's name, whether written by himself or by any other person, or even printed, was sufficient to secure free transmission through the post. In 1825 the conditions were definitely repealed, and newspapers became legally entitled to free transmission by post.[269]

There were reasons why the Government and the Post Office did not suppress the extension of the privilege accorded to newspapers. At this time heavy general taxes were imposed on newspapers--the paper duty, the advertisement duty, and the stamp duty.

These charges had been first imposed in the early years of the eighteenth century, when newspapers were changing character, and they were in the nature of restrictions on the liberty of the Press, a continuation of the restrictions which had previously been maintained by means of Licensing Acts.[270] Newspapers were at that time ceasing to be mere chronicles of events, and were beginning to publish comments and to criticize persons and parties. A Bill to impose a tax of 1d. a copy on all periodical publications was brought into Parliament in 1701, but was abandoned owing to the opposition of the newspaper proprietors, who represented that they were in the habit of selling their papers at a 1/2d. a copy.[271] In 1712 a message from the Crown, adverting to the undesirable character of the new development of newspaper enterprise, recommended that a remedy be found without delay. The result was the imposition of a stamp duty of 1/2d. the sheet on all newspapers of a sheet and a half.[272] The privileges with regard to their transmission by post were, however, in no way interfered with.

In 1776 the tax was raised to 1-1/2d. a copy, in 1789 to 2d., in 1794 to 2-1/2d., and in 1815 to 4d., at which amount it stood until 1836. In 1819 onerous restrictions with regard to registration, bonds, and sureties were imposed, mainly with the view of preventing the issue of publications of undesirable character.[273]

In consideration of these charges the Government were prepared to allow free transmission by post. Moreover, the franking privilege of the Clerks of the Road was favoured as an economy. They argued that as these officers received considerable sums from their newspaper business their salaries from the Post Office were correspondingly low, and if the newspaper business were taken from them it would be necessary for the Post Office to make good the loss in income which they would suffer.[274] It would seem that there was at this time no conception of charging a rate of postage on newspapers; and so far the authorities were right in thinking the abolition of the privilege would cause an addition to the expenses of the Post Office, in compensation for which there would be no increase in revenue. Whatever were the taxes paid to other departments, it was clearly in the financial interest of the Post Office, so long as newspapers passed free by post, to retain a system which enabled certain of its officers to obtain part of their income from special arrangements for the distribution of the newspapers, instead of from Post Office funds.

The Clerks of the Road still held an advantage over the ordinary newsagents. The local postmasters acted as their agents, and they had, moreover, the important privilege of posting their papers later. Newsagents were not permitted to post after seven o'clock, but the Clerks of the Road could post as late as eight o'clock. They were able, therefore, to retain a considerable business. In 1829 it was estimated that as many as one-eighth of all the newspapers sent out from London were sent by the Clerks of the Road.[275] The privilege of late posting was withdrawn in 1834, and their business then ceased.[276]

It seems anomalous that at the same time that the Government, with the object of restricting the publication and distribution of newspapers, imposed a heavy stamp duty and a duty on advertisements, they should have assisted, by allowing free transmission by post, the distribution of such newspapers as were able to survive the impositions; but the heavy taxes were intended to prevent the issue of cheap newspapers, and expensive papers could only find sale among those who were not attracted by dangerous doctrines, political or otherwise.[277] In the view of the Government this aristocratic character ensured, moreover, a high moral tone in the Press. Without such taxes the English Press might become a moral danger and might conceivably sink to the level of the American Press of the day, which, according to some eminent persons, was very low indeed.[278] The question of free transmission by post received little attention. Chief interest was centred on the allegation that the stamp duty so raised the price of legitimate newspapers as to place them beyond the reach of any but the well-to-do.

The question of allowing the free publication of newspapers, or of, at least, reducing the heavy burdens under which they lay, became urgent after the passing of the Reform Act of 1832.[279] The increase in the number of people directly interested in political affairs through the extension of the franchise, and the awakened general interest in social and economic problems, not only produced a great demand for newspapers, but made necessary provision for the dissemination of accurate political intelligence.[280] Numerous unstamped papers, which found a ready sale, were issued in various parts of the country, in defiance of the law. Thus, in London, one of these papers, _The Poor Man's Guardian_, an able and "Socialistic" paper, bore on its title-page a notification that it was deliberately published contrary to law, in order to test "the power of right against might."[281]

The Government took strong action against such publications. Numerous prosecutions were undertaken, and a large number of persons in various parts of the country were imprisoned; but the circulation of the papers could not be checked. Popular sentiment was largely on the side of the publishers and sellers of unstamped papers, sympathy being so strong that frequently subscriptions for their benefit were raised.[282]

It became apparent very soon after the passing of the Reform Act that the heavy duty could not be maintained. It was indeed so high, and the sale of the unstamped publications was so great, that in the years after 1831 there was an actual diminution in the yield of the stamp duty. In 1836 the Government were constrained to deal with the question. They introduced a Bill providing for the reduction of the duty from 4d. a sheet to 1d. a sheet. The Chancellor of the Exchequer said that the reduction was simply a concession to public necessity and expediency. If the duty were maintained at its then existing level, public feeling against it would increase, and might lead to a general disposition to encourage illegal publications. The reduction would, moreover, assist the moral improvement of the people.

The reduction of the duty was not carried without opposition. _The Times_, which had attained its position under the old duties, and the other great newspapers then successfully conducted, were opposed to the reduction, foreseeing the possibility of the rivalry of new and cheap competitors.[283] An attempt was made to argue that the benefit would not accrue to the public, since the public did not in general buy newspapers but went to the public-house to hear them read. Such persons would still go to the public-house, and would therefore derive no benefit from the reduced price: the advantage would be with the publican. On the other hand, it was anticipated that the reduction of the duty would so cheapen the newspapers that they would be brought within reach of all. Mr. Spring Rice said he knew that "the newspaper was one of the great attractions to take the poor man from home to visit the public-house; if, therefore, the adoption of this proposition tended to keep the poor man at home, it would afford a great moral aid to the improvement of the people."[284] The moral uplifting of the poor man was a mighty shibboleth in those days, and one which gave a power to these arguments.

The rates fixed by the Act of 1836 were 1d. for the first sheet, not exceeding 2,295 superficial square inches, and a halfpenny for a second sheet not exceeding 1,148 square inches. The existing provisions with regard to registration and sureties were continued. They were considered of importance, in view of the likelihood of the establishment of cheap irresponsible papers which might be found publishing slanderous and scurrilous, if not blasphemous, statements.

There is little doubt that the Government had in mind a wish still to keep some restriction on the Press, and the Radicals always took that view. The penny duty undoubtedly had the effect of preventing the issue of really cheap newspapers.[285] Although in Parliament the Government argued that they were entitled to the penny as a postage charge,[286] it is unlikely that they did not realize how illogical it would be to charge a penny stamp duty on every copy of a newspaper that was printed, in order to secure the free transmission by post of such copies as the publisher might wish to distribute by that means.[287] The proportionate numbers of newspapers sent or not sent by post would not be the same for all publications. Such a provision was therefore bound to work unequally. Moreover, the new duty meant that it would still be impossible to issue a newspaper at the price of one penny, and the cheap newspaper was still barred. The duty was in fact still a restrictive tax; and by those who were opposed to all "taxes on knowledge," of which the newspaper duty had been considered one, the question was never regarded as settled by this reduction.[288]

The official Whigs did not say much on the question of the restrictive character of the duty. The Radicals were not so careful to hide the repressive side. While not suggesting that the Government (with whom they voted) desired the continuance of a restrictive duty, they roundly accused the Opposition of desiring to restrain the dissemination of intelligence, "in order to keep up their influence over a certain class of people, and at the same time to perpetuate the ignorance which had hitherto hung about them."[289]