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Transcriber's Notes

This is a Plain Text version. It uses the 7-bit ASCII character set.

Accented characters are represented as follows:

['a] indicates the acute accent [e'] indicates the grave accent [^i] indicates the circumflex accent [:u] indicates the umlaut

The following are used to represent special characters and marks:

[~d] [~r] [~n] indicates a tilde above d, r, n [p=] indicates a line below p [=o] [=co] [=xon] indicate an overline above 1, 2 or 3 characters [^p] indicates an inverted breve above p [oe] indicates an oe ligature [L] indicates the pound (Sterling) sign [S] indicates the Section symbol

Italic typeface in the original is indicated with _underscores_. Bold typeface in the original is indicated by UPPER CASE. Small capital typeface in the original is indicated by UPPER CASE.

There are a large number of footnotes. These have been grouped together at end of each chapter or major section in which they are referenced.

There are numerous quotations from documents in German, French and archaic English which use many abbreviations, variant spellings and inconsistent spellings. These are retained, except where obvious typo corrections are listed at the end of this document.

* * * * *

STUDIES IN ECONOMICS AND POLITICAL SCIENCE.

EDITED BY THE HON. W. PEMBER REEVES, PH.D., _Director of the London School of Economics and Political Science._

No. 50 in the Series of Monographs by writers connected with the London School of Economics and Political Science.

THE DEVELOPMENT OF RATES OF POSTAGE

* * * * *

THE DEVELOPMENT OF RATES OF POSTAGE

AN HISTORICAL AND ANALYTICAL STUDY

BY

A. D. SMITH, B.Sc. (ECON.)

OF THE SECRETARY'S OFFICE, GENERAL POST OFFICE, LONDON

WITH AN INTRODUCTION BY

THE RIGHT HON. HERBERT SAMUEL, M.P. POSTMASTER-GENERAL 1910-14 AND 1915-16

LONDON: GEORGE ALLEN & UNWIN LTD. RUSKIN HOUSE 40 MUSEUM STREET, W.C. 1

[_Thesis approved for the Degree of Doctor of Science_ (Economics) _in the University of London_]

_First published in 1917_

(_All rights reserved_)

PREFACE

This study, which was prepared primarily as a Research Studentship Report for the University of London, is intended to be a contribution to the history of rates of postage, and an attempt to ascertain the principles, economic or otherwise, on which they are and have been based.

The Postmaster-General accorded me permission to consult the official records at the General Post Office, London, and through this courtesy I have been enabled to include a detailed examination of the economic aspect of the rates in the inland service in this country, and to place in the Appendix copies of some original documents which have not before been printed. Without this permission, which I desire here to acknowledge, it would, indeed, scarcely have been possible to undertake the inquiry. It must be made clear, however, that the work is of entirely private character, and cannot be taken as in any way expressing the views of the British Postal Administration.

In 1912, as the holder of the Mitchell Studentship in Economics at the University of London, I visited Ottawa and Washington; in 1913 I visited Paris and the International Bureau at Berne; and in 1914, Berlin. I am much indebted to the various postal administrations visited, to whom, by the courtesy of the Postmaster-General, I carried official letters of introduction in addition to my letters from the University, for facilities to consult official papers relating to the subject of investigation, and for assistance from members of the staff with whom I was brought into contact.

The work was all but completed at the outbreak of war, but publication has been unavoidably delayed. The overpowering necessities created by the war have caused Governments again to look to postage for increased revenue. Penny postage itself has been in danger in the country of its origin. Various war increases of postage have already been made, both here and abroad, and brief particulars of the changes in the countries dealt with have been included. Further proposals for increasing the revenue from postage will possibly be made, and I am hopeful that these pages, in which the course of postage is traced, may then be found of service.

For the privilege of numerous facilities in connection with my work on the rates in this country I am indebted to Mr. W. G. Gates, Assistant-Secretary to the Post Office; and for assistance in my inquiries abroad I am indebted to Dr. R. M. Coulter, C.M.G., Deputy Postmaster-General, Ottawa, and Mr. William Smith, I.S.O., at the time of my visit Secretary to the Canada Post Office; to Congressman the Hon. David Lewis, of Maryland, and Mr. Joseph Stewart, Second Assistant Postmaster-General, United States Post Office; to M. Vaill['e], of the Secr['e]tariat Administratif, Ministry of Posts and Telegraphs, Paris; and to M. Ruffy, Director of the International Bureau, Universal Postal Union, Berne.

I am especially indebted to Professor Graham Wallas for valuable suggestions and advice.

A. D. SMITH.

LONDON SCHOOL OF ECONOMICS, 1917.

CONTENTS

PAGE

PREFACE v

INTRODUCTION xi

I. THE RATE FOR LETTERS-- Letter Post in England 1 Letter Post in Canada 37 Letter Post in the United States of America 59 Letter Post in France 78 Letter Post in Germany 97

II. THE RATE FOR NEWSPAPERS-- Newspaper Post in England 111 Newspaper Post in Canada 136 Newspaper Post (Second-class Mail) in the United States of America 148 Newspaper Post in France 164 Newspaper Post in Germany 173

III. THE RATE FOR PARCELS-- Parcel Post in England 183 Parcel Post in the United States of America 191 Parcel Post in France 204 Parcel Post in Germany 209

IV. MINOR RATES-- (i) Book Post 220 (ii) Samples 229 (iii) Commercial Papers 238 (iv) Postcards 241 (v) Rate for Printed Matter for the Blind 244 (vi) Minor Rates in the United States and Canada 244

V. LOCAL RATES 247

VI. INTERNATIONAL RATES-- (i) International Letter Post 263 (ii) International Parcel Post 277

VII. AN ANALYSIS OF COST-- Method 283 Cost 289

VIII. CONCLUSION 312

APPENDIX A-- I. RATES OF INLAND LETTER POSTAGE CHARGED IN ENGLAND, 1635-1915 336 II. FOREIGN RATES IN THE BRITISH SERVICE 340 III. THE THURN AND TAXIS POSTS IN GERMANY 349 IV. PARCEL POST IN CANADA 355 V. THE SUPPLEMENTAL SERVICES 357 VI. POST OFFICE REVENUE 358 VII. GRAPHS 368

APPENDIX B--

DOCUMENTS AND EXTRACTS ILLUSTRATING ASPECTS OF POSTAL HISTORY-- (i) Ancient Posts 374 (ii) Nuncii and Cursores 377 (iii) Witherings' Scheme for the Reform of the Posts in England, 1635 378 (iv) The Monopoly and the General Farm of the Posts 380 (v) The English Post Office in 1681 384 (vi) The Cross Posts 388 (vii) The Early Posts in North America 391 (viii) The Clerks of the Road and the Transmission of Newspapers 403

APPENDIX C-- LIST OF AUTHORITIES 412

INDEX 425

INTRODUCTION

This book contains a collection of facts and an examination of principles which will be of value to all students of the subject with which it deals. It is more comprehensive than any book on rates of postage yet published in the English language, or, I believe, in any other. It is careful and unbiased, and although here and there some of the author's conclusions may not meet with unanimous acceptance, they cannot fail to stimulate useful discussion on a matter which is far more important than is often realized.

The whole of our social organization has come to depend in large degree upon the post. Commerce, in all its departments, relies upon it. All the variety of associations which are, in their wide expansion, distinctive of modern civilization and necessary to its life and energy--employers' associations, trade unions, co-operative societies, friendly societies, religious bodies, political and propagandist organizations of every kind, local, national, and international--the whole nervous system of the modern State, depends upon the quick transmission of information and ideas; it would never have reached and could not maintain its present development without cheap, reliable, and speedy means of communication. The indirect effects of changes--even small changes--in the postal system are often extensive and almost incalculable.

Where the State itself conducts an industry there is always a risk that commercial considerations and fiscal considerations will not be sufficiently distinguished. Charges may be fixed at a higher point than is warranted by the cost of the services rendered. The surplus goes to the national revenue. It is a tax, but a concealed tax, and in the case of postal rates it is one of the worst kinds of tax, a tax on communications. On the other hand, charges may be fixed at a lower point than will cover the cost of the service. The deficit is a subsidy, but a concealed subsidy. The halfpenny postage rate for bulky newspapers, for example, or the extension of telegraph offices to rural districts, may be socially useful, but they are unremunerative. The loss that they involve to the Exchequer may be justifiable, but if so it should be deliberately incurred. It should not be hidden in the profit that is made on the letter post. Without a scientific examination into the actual cost of each part of the postal and telegraphic service, and into the precise relation of revenue to cost, the charges may include, haphazard, an excess which is nothing but pure taxation, the expenditure may include an addition which is nothing but pure subsidy, and neither the administrator nor the taxpayer may be aware of the fact.

It is therefore one of the essential duties of the Post Office to make such examinations, and of students or critics of postal affairs to check or to supplement them. Mr. A. D. Smith has made a useful contribution to the application, in this sphere, of the methods of science to the conduct of industry; and since the postal service is the most international of all forms of social activity, it may be expected that his contribution will be of value, and will have its influence, far beyond the limits of our own country.

HERBERT SAMUEL.

I

THE RATE FOR LETTERS

LETTER POST IN ENGLAND

In England the postal service, as an organized means for the carrying of the King's despatches, dates back some four hundred years, and as a recognized arrangement for the carrying of letters for the public, some three hundred years. Before the establishment of a regular system of posts, provision had been made for carrying the King's despatches by special messengers, called _nuncii_ or _cursores_, attached to the royal household.[1] Their function was naturally one of importance, and, from early times, large sums were expended in their maintenance. They were employed on the private and confidential business of the Crown and of members of the royal household, and on affairs of State, both in England and abroad, although their function was primarily to serve the convenience of the King.

This was a system for the conveyance of official despatches only.[2] No public provision was made for the conveyance of letters for private individuals. Such letters were conveyed by servants, by special messengers, or by the common carriers,[3] and there is evidence of the existence of a considerable private correspondence in the frequent issue of writs during the fourteenth and fifteenth centuries ordering supervision of the traffic in private letters, the uninterrupted transmission of which was a source of much anxiety to the Crown from fear of the fomenting of sinister and treasonable plots against itself.[4]

The establishment of the _nuncii_ or _cursores_ developed into a regular system. On certain lines of road relay stages were set up, at which the messengers might without delay obtain a change of horses, a system first set up by Edward IV in 1482, during the war with Scotland.[5] Such relay messengers were called "posts," a word borrowed from the French.[6] The term was also applied to the line of route, and the expression "post," or "line of posts," was used to denote a route along which, at certain stages, post-horses were kept in readiness for the use of the King's messengers. Travelling in this way the messengers were able to cover a hundred miles a day. The establishment of lines of regular posts became a feature of the administrative system, and a special officer of the royal household was appointed to control them.

The first recorded Master of the Posts was Brian Tuke, who held the office in 1512. The posts, like the establishment of special messengers, were maintained solely at the cost of the King. The master received a salary from the King (which in a patent issued in 1545 is given as [L]66 13s. 4d. a year), and also the amount of his expenses incurred in providing for the carrying of letters. The regular postmasters received a daily wage from the King. On lines along which no regular post had been established, but along which it might on occasion be necessary to send special messengers, the townships were obliged to furnish horses for the service of the messengers. Remarks in contemporary papers suggest that no payment was made in such cases, but that horses were supplied gratis for the King's service.[7] There is no record of the early days of Tuke's tenure of the office of Master of the Posts; but in 1533 Thomas Cromwell complained to Tuke concerning the condition of the posts, and the great default in the conveyance of letters.[8]

The posts were in many cases established on account of some special circumstance, and were of a temporary character. The first regular post--that established in 1482 during the war with Scotland--was, of course, temporary; but at much later dates, when "ordinarie," or permanent, posts had been established, such as the post from London to Berwick and that from London to Beaumaris, it was still usual to establish "extra ordinarie" posts "in divers places of the Realme" as occasion might from time to time require, as, for example, during the periods of the sovereign's progresses.[9]

The early posts had a second function, not less in importance than that of providing for the conveyance of the sovereign's despatches, and despatches sent on affairs of State viz. the provision of means by which persons actually travelling on the business of the sovereign, though not bearing despatches, might do so with facility. This second function, the travelling post, continued until the eighteenth century. It is a function which is essentially akin to the provision of a means of intercommunication by means of letters. In many parts of the United Kingdom, and also in other countries, the means provided for the conveyance of the mail are still largely used by persons desiring to travel.[10]

The use of the post-horses by ordinary travellers commenced at an early period. In 1553, when the posts had been in existence only some fifty or sixty years, a rate of a penny a mile for persons riding post was fixed by statute.[11]

Great abuses grew up round the travelling post, or "thorough post," as it was called.[12] Riders in post frequently failed to pay a reasonable sum for the hire of horses; and since King's messengers, although paying no fixed rates, obtained better accommodation than others, riders in post travelling on their own affairs made no scruple to represent themselves as travelling on public service. Orders directed against these abuses were issued in 1603. Riders in post on the King's affairs, with a special commission signed either by one of the Principal Secretaries of State, by six at least of the Privy Council, or by the Master of the Posts, were to pay at the rate of 2-1/2d. a mile for a horse. All others riding post about their own affairs were to make their own terms with the postmaster, and to pay in advance.[13] The net result was that for all persons riding with the special commission a fixed rate was payable in place of uncertain rates as hitherto, and the postmasters were protected from being imposed upon by persons riding post on their private business. Without the special commission it was useless to pretend to be travelling on the King's affairs. By this proclamation the postmasters were also given the exclusive right of letting horses to travellers.[14] The wages of the postmasters in respect of the "post for the pacquet" were a fixed sum per day, and a certain number of horses had to be kept in readiness, in proportion to the amount of the wages paid. As regards the service for the State, the system of posts was therefore on a complete and definite financial basis. The rates for the thorough post, although not in any way rates of postage in the modern sense, were the first rates applied to the service of the posts (the pay of the postmasters for the packet post being merely wages per diem), and it was to them that the term "postage" was first applied. These rates were in fact the original "postage."

The number of regular posts was in early times quite small.[15] In order to provide a means of reaching other parts of the kingdom with some degree of facility, the municipalities were required to maintain, or at least provide when required, post-horses for the use of the King's messengers.[16] Some municipalities made definite provision of horses: Leicester, for example, maintained "certen poste-horses" (four in number) for the service of the Prince; but if horses were not provided voluntarily, the magistrates and constables were authorized to seize them for the King's service wherever they could be found.[17] Many of the posts continued for a long period to be of a temporary nature. Even in the seventeenth century some which it might be thought would have been important at any time, were regarded as extraordinary posts, and were discontinued with the disappearance of the special circumstances on account of which they had been established.[18]

A third function became attached to the posts, viz. the transmission of private letters. As it is impossible to say at what date the posts began to be used by ordinary travellers, so it is impossible to say at what date they were first used for the conveyance of letters other than those on the affairs of the King or of the State. The universities and municipalities provided services for the carriage of their own letters;[19] but from a very early period the posts were also made use of for the conveyance of unofficial letters. The Master of the Posts received no direct profit from the carrying of such letters,[20] but the price paid to him for the office of Deputy Postmaster was probably thereby increased.[21]

A Proclamation of 26th April 1591 prohibited the conveyance of letters to or from countries beyond the seas by any person other than the ordinary posts and messengers; and referred to previous similar prohibitions. The object of this prohibition, which foreshadowed the monopoly of the carriage of all letters, whether for places within the realm or to or from foreign countries, was alleged to be the redress of disorders among the posts in general, and particularly to prevent inconveniences both to the royal service and the lawful trade of honest merchants.[22] A Proclamation of 1609 repeated this prohibition.[23]

In 1626 a legal struggle was in progress between Matthew de Quester and Lord Stanhope, both of whom claimed to hold a King's Patent conferring the right to carry foreign letters.[24] This litigation led to laxity and omission in the conduct of the foreign service, so that merchants trading abroad were put to great inconvenience. In consequence, in November of that year, the King granted the Merchant Companies permission to arrange for the conveyance of their foreign letters by their own messengers. The high authorities were disturbed by the grant of this permission,[25] and in October 1627 it was revoked "upon weightie reasons of State." Only the Merchant Adventurers were still permitted to use their own messengers, and they and all other merchants were required in times of war and danger to the State to acquaint the Secretaries of State from time to time with what letters they forwarded abroad.

The foreign post continued in an unsatisfactory state, and a reorganization in accordance with a proposition submitted by the Master of the Foreign Posts, Thomas Witherings, was notified in orders issued on the 28th January 1633. In consequence of complaints, both of Ministers of State and merchants, it was decided to send no more letters by the carriers, who came and went at pleasure, but, in conformity with other nations, to erect "stafetti," or packet posts, at fit stages, to run day and night without ceasing. Under this new system the Foreign Postmaster of England undertook, with the consent of the foreign Governments, to provide "stafetti" for the conveyance of foreign letters on the Continent, e.g. he arranged the "stafetti" between Calais and Antwerp.