within the revenue, and after he had been in the colony some two months
Mr. Page submitted a scheme which should remove the deficit in Nova
Scotia, then over [L]1,000 a year.[121] This scheme, which was not lacking
in boldness, proposed the discontinuance of no less than twenty-four
couriers, and reduction of the frequency of the mail in two other cases,
involving towns of some importance.
On the 6th July 1843 the Post Office of New Brunswick was separated from
that of Nova Scotia and a large number of services abolished. Following
on these drastic measures, the New Brunswick Legislature, in 1844,
adopted a joint Address to his Majesty, praying for redress. They asked
for a reduction of letter rates, for the abolition of newspaper rates,
and for the application of all surplus revenue to the extension of
facilities for inter-provincial communication, adding that in
consideration of the introduction of these changes the Legislature would
guarantee to provide such sums as might from time to time be necessary
to defray the expenses of the department. The reply of the Colonial
Office was that the prayer of the petition could not be granted, since
other provinces were involved; but that, so long as the province
guaranteed the charges, the proposal as regards newspapers, taken by
itself, was unobjectionable.
The Home authorities, seeing that in Nova Scotia and New Brunswick the
service still showed a deficit year by year, remained indisposed to
introduce reduced rates; but when Lord Clanricarde was appointed
Postmaster-General there was a change of policy. Lord Clanricarde came
to the conclusion that the time was ripe for a reduction of rates in
British North America, although he was convinced that such a reduction
would entail heavy postal deficits in all the provinces. It would be for
the provincial Legislatures to make good these deficits, and he
concluded it was therefore expedient that the full control of the
service should be handed over to the provincial authorities, subject to
certain conditions imposed with the view of preventing friction between
the provinces over the transit across the sea-board provinces of mails
for or from the interior.
Lord Elgin, Secretary of State for the Colonies, suggested to the
Governor-General[122] that one or two members of the Executive Councils
of Canada, Nova Scotia, New Brunswick, and Prince Edward Island should
meet at Montreal to discuss the question and mature a plan, which could
be submitted to the respective Legislatures, for the assumption by the
provinces of the administration of the Post Office. A conference was
arranged, and a plan for the establishment of a uniform system
throughout the British North American Colonies elaborated.
The conference made clear that in the repeated remonstrances against the
"transfer of assumed surplus receipts" to the revenue of the British
office there was no desire on the part of the provinces to make the Post
Office a source of revenue, or, indeed, to call into question the
prudent management of the Imperial Government; but that the
remonstrances were prompted by a growing conviction of the great
importance of an efficient postal system as a factor in their social and
commercial welfare, and as "a means in a new country of extending
civilization." The provinces were impressed by the great social and
moral benefits which had followed the introduction of cheap postage in
the Mother Country, and were anxious to extend to their own land the
benefits of the system, which had already been introduced by their great
neighbour. The delegates were satisfied that the most suitable rate
would be 3d. the half ounce, uniform, irrespective of distance; but,
thinking it likely that some of the provinces might be unwilling
entirely to disregard distance, they recommended that an option be
suggested for any province that wished so to do to charge double rates
for distances greater than 300 miles. They recommended the establishment
throughout British North America of a uniform system and rate of
postage, with as little local modification as the circumstances of the
various provinces might demand. But for two main reasons they were
opposed to a common administration: (1) they considered that the control
by each province of its postal establishment would be a powerful aid to
economy in administration, would prevent imprudent extensions of postal
accommodation, and would prevent also any feeling of jealousy between
the provinces with regard to the application of the funds of the
establishment to the extension of services in the respective provinces;
(2) they thought the various provinces would be more likely to accept a
system under local control, each province defraying the entire cost of
its service, and retaining all postage collected within its limits,
whether prepaid or post-paid.[123]
The Home authorities accepted the recommendations of the conference,
subject to a few slight modifications in non-essentials, and an Act,
passed in 1849, authorized provincial Legislatures to establish posts
within their respective territories, but gave them no authority over the
posts between the colonies and places abroad.[124]
The transfer of the Post Office systems to the provincial Governments
was accomplished in 1851.
Delegates from all the colonies met to consider the arrangements to be
made for conducting the office under the new conditions. With the
example of England before them, as before the world, the delegates were
anxious for a uniform rate, and for a low uniform rate. They realized,
however, that conditions vastly different from those prevailing in
England prevailed in British North America. With their great distances
and their thinly settled districts, with the rigours of the American
climate and the generally poor state of the roads, it could not be
anticipated that rates which had been found successful in England, with
its comparatively small area and dense population, with its less
difficult climate and its better facilities for intercommunication,
would prove equally successful. In the end a compromise was
adopted--uniformity of rate, but a rate moderately high, viz. 5
cents.[125]
A period of great development ensued, especially in the Maritime
Provinces. Under the stimulus of the reduction of the rate to the new
uniform charge of 5 cents per 1/2 ounce, in place of a charge graduated
by distance which had averaged over 8d. a letter, the number of letters
increased so rapidly that in four years the gross revenue had recovered
its former level.[126] But in both Nova Scotia and New Brunswick the
account regularly showed a heavy deficit, in partial explanation of
which there was the fact that both Governments carried newspapers in the
mails free of charge. In Canada, with a larger number of commercial
communities, the results were somewhat better. But even there the
accounts showed a deficit until 1859. From that year there was an annual
surplus until 1865, when the heavy charges for conveyance of the mails
by railway began to tell.
These conditions continued until the confederation of the British North
American Colonies in 1867. The control of the Post Office was within the
powers assigned to the new Dominion Government. The Government was
desirous of not falling behind other countries in the provision of Post
Office services, and it was necessary for political reasons to take
advantage of every available means for facilitating intercommunication
between the different parts of the Dominion. Shortly after
confederation, therefore, a Bill to establish and regulate a Federal
Dominion Post Office was brought before the Dominion Parliament.
A reduction of the letter rate of postage from 5 cents to 3 cents per
1/2 ounce was proposed, and a rate of postage on newspapers. In some of
the provinces newspapers had previously been carried by the posts free
of charge; and the establishment of a rate of postage for them was to
some extent bound up with the reduction of the letter rate, since with
the lower rate for letters the free transmission of newspapers would
have proved so great a strain on the revenue, that either the Government
would have been compelled to make larger grants in aid, or services
would have to be withheld in districts where it was desirable they
should be provided. Some members were disposed to think the better
course would have been to retain the old rate for letters and to allow
newspapers to pass free, as had long been the practice in the Lower
Provinces; and the imposition of a rate on newspapers was characterized
as a tax on the dissemination of public intelligence and a retrogressive
step towards old and exploded abuses.[127]
Other members desired to follow the English example and reduce the
letter rate to 2 cents, the equivalent of a penny; but this was deemed
impracticable on account of the different conditions under which the
Post Office was conducted in Canada, where the mails were carried very
long distances through a sparse population.[128] In the United States,
where the circumstances were more nearly comparable, the rate was still
3 cents. With a rate of 3 cents in Canada, as proposed, it was
anticipated that there would be a considerable deficit, but that the
deficit would soon disappear.[129] It was alleged that there was no
demand for a reduction and that everybody was willing to pay 5 cents;
but the real objection was not to a reduction in the letter rate _per
se_. The objection arose from the assumption, fairly well grounded, that
the reduction was only possible if accompanied by the establishment of a
postage on newspapers, to which a number of members were strongly
opposed. The rate of 3 cents for 1/2-ounce letters was, however,
adopted. In three years the yield of postage at 3 cents surpassed the
former yield at 5 cents.[130]
In 1898 a Bill for modifying rates of postage was introduced. The main
propositions of the Bill were (1) to reduce the letter rate to 2 cents
per ounce, and (2) to impose a postage on newspapers. Since 1867 there
had been several changes in newspaper postage, and for about nineteen
years newspapers had been passing through the post in Canada free of any
charge for postage.[131] The postal service was at this time being
carried on at some loss to the general Dominion revenue, and, as in
1867, the proposal to charge postage on newspapers was made to
counterbalance any loss of revenue which might result from the reduction
in the letter rate of postage. It was hoped that with this
counterbalance any such loss would soon be made good, and that, indeed,
the Post Office would become a self-sustaining department.[132]
The arguments in Parliament were almost identical with those of 1867,
when the previous similar proposals as regards the letter and newspaper
rates were before it. Stress was, however, now laid on the contention
that letter-writing was the pursuit of the wealthy, and of business and
commercial men, who were well able to pay for their correspondence,
while the newspapers were sent mainly to the farmers of the country, who
wrote few letters. The Government were proposing at this time to raise a
million dollars by a tax on sugar, a course denounced as an imposition
by the Government on the poorer classes, to whom sugar is a necessity,
while the reduction of postage would present the wealthier classes with
some $650,000 a year.[133]
The reduction was carried, and the 2-cent rate has proved successful.
The gross revenue recovered within four years.[134] The number of
letters has largely increased, especially in recent years, largely, no
doubt, in consequence of the growing commercial prosperity. The total
number, which in 1876 was some 41 millions, had in 1913 increased to 633
millions. The financial result has also proved satisfactory. The Post
Office service in Canada as a whole in 1913 showed a profit of some
$1,200,000, and there is no doubt that the greater part of this profit
was derived from letters.
NOTE.--In 1915 a war-tax of 1/2-d. was imposed on all letters and
postcards. On the assumption that the numbers posted would not be
appreciably diminished, the increase of revenue was estimated at
$6,000,000 a year, and this estimate has been realized.
* * * * *
LETTER POST IN THE UNITED STATES OF AMERICA
The New England colonies had not been long established when the public
authorities first took cognizance of the arrangements for the
distribution of letters. In 1639 the general court of the Massachusetts
Bay colony made an order for the establishment of a service in respect
of letters for or from places abroad. A house-to-house delivery of
letters received from abroad at the low uniform rate of 1d. would seem
to have been contemplated.[135] At various intervals during the latter
half of the century, Post Offices were established in most of the other
colonies--in Virginia in 1657, in New York in 1672, in Connecticut in
1674, in Philadelphia in 1683, and in New Hampshire in 1693.[136] These
Post Offices were set up in the various colonies by legal enactment, but
they were in general local and municipal in character. In the
circumstances of the case they could at that time hardly have been
otherwise. The colonies were independent of each other in administrative
matters, and seldom acted together for any purpose. The population
relatively to the extent of the colonies was extremely small, the
settlements were scattered, and the roads were mere trails.[137] In
general there was very little intercourse between the various colonies.
Such intercommunication as was carried on usually went by means of
coastwise vessels or by occasional travellers. The one exception was a
post route from New York to Boston, established in 1672 to go monthly.
The system established in Virginia in 1657 was of a primitive character,
being merely a requirement that every planter should furnish a messenger
to convey the mail to the next plantation, under penalty of forfeiting a
hogshead of tobacco in default.
In 1688, by an Order in Council, the establishment of a Post Office in
Jamaica, and such other of his Majesty's plantations in America "as
shall be found convenient," was authorized. On the 17th February 1692
the Crown granted a patent to Thomas Neale (then Master of the Mint)
vesting in him the American post, with full power and authority to erect
post offices in the chief parts of the American colonies "for the
receiving and despatching of letters and pacquets, and to receive, send,
and deliver the same under such rates and sums of money as the planters
shall agree to give." It was no light matter to obtain the acquiescence
of all the colonies in the exercise of general rights as regards the
Post Office in North America, especially as they had previously been
free to make their own arrangements in this respect. Neale was himself
never in North America, but his deputy there, Andrew Hamilton, who was a
very capable man, was able not only to secure the acceptance by the
colonies of a general postal system under Neale's patent, but to obtain
from some of them small grants in aid.
Most of the colonies passed Acts authorizing the establishment of Post
Offices under the provisions of the patent; and the principle of postal
monopoly was introduced in these enactments.[138] The General Assembly
of Virginia authorized a Post Office in the colony, believing such an
office to be of "generall concernement and of great advantage for the
increase and preservation of trade and commerce therein, for thereby
speedy and safe despatch may be had."[139] The rates of postage were as
follows:--
Every letter For distance not 3d.
not exceeding exceeding 80
one sheet English miles
Ditto two sheets " 6d.
Every pacquet " 12d. per ounce
of writs and weight.
deeds
Every letter Above distance 4-1/2d.
not exceeding of 80 English
one sheet miles
Ditto two sheets " 9d.
Every pacquet " 18d. per ounce.
of writs and
deeds
The rates established in the other colonies were similar but not
identical.
The new postal service under the authority of the patent was commenced
on the 1st May 1693. A post was set up from Portsmouth, New Hampshire,
to Boston, Saybrook, New York, Philadelphia, Maryland, and Virginia.
Five stages were fixed, and a rider was appointed to each stage. In
summer the service was performed weekly, and in winter fortnightly. At
the commencement, as may be readily understood, the conditions were
somewhat difficult.[140] But with the growth of population and commerce,
conditions improved. The service to the South was for many years subject
to general irregularity and temporary suspension, especially at times of
flood.
The Post Office in America has from its first establishment as a general
system, as distinguished from the merely local or municipal posts, had
to reckon with two factors which have been of great importance in
relation to all the main services--a vast extent of territory and a
sparse population. The rates were higher than those in operation in
England, but at first, and for many years, the revenue was insufficient
to defray the expenses. The finance of the American Post Office
consequently differed fundamentally from that of the English office.
Neale was required by the terms of his patent to render an account at
the end of three years of the receipts and expenditures of the American
post. His first account was not, however, rendered until 1698. It showed
that the expenses up to May 1697 were [L]3,817, and the receipts [L]1,457,
there being thus a loss of [L]2,360. The account was accompanied by a
statement prepared by Hamilton, explaining the great advantages to the
trade and commerce of the colonies, as well as to their security, which
the Post Office provided; showing how necessary in consequence was the
continuance of the office, and recommending that definite rates of
postage for the whole territory be fixed by statute. Other regulations
for the conduct of the system were also suggested, as the existing
arrangement, involving such serious loss to the patentee, could not be
continued indefinitely. Neale contented himself with a brief remark to
the effect that whenever his Majesty should see fit to take the conduct
of the posts into his own hands, he (Neale) would be glad to surrender
his patent--of course, for a consideration.[141]
The Postmasters-General opposed the suggested increase of rates on
general grounds, their experience having taught them that "the easy and
cheap corresponding doth encourage people to write letters, and that
this revenue was but little in proportion to what it is now, till the
postage of letters was reduced from sixpence to threepence."
Neale died shortly afterwards, and his rights in the patent were
transferred to his creditors, who were Hamilton himself and an
Englishman named West. Hamilton died in 1703, and his widow carried on
the posts for some two or three years. In 1706 she and West endeavoured
to obtain an extension of the term of the patent; so that, although the
posts had been conducted for some years at heavy loss, both by Hamilton
and by his widow, the conditions had improved, and there was now
reasonable anticipation of a profit from the office. The view of the
Postmasters-General, however, ultimately prevailed, and in 1707 the
patent was bought back for the Crown for the sum of [L]1,664. When, a few
years later, a general Act of Parliament was found necessary, the
opportunity was taken to place the American posts on a definite
statutory footing.[142]
The preamble recites that posts had at great charges been established on
the mainland of North America through most of her Majesty's plantations
and colonies, and the Postmasters-General were authorized to establish a
"Chief Letter Office" in New York, and other chief offices at some
convenient place or places in each of the colonies in America, and to
appoint deputies for the "better managing, ordering, collecting, and
improving the Revenue" granted by the Act. Rates for the transmission of
letters between England and America were fixed, and detailed rates for
transmission between specific towns within the North American colonies.
The rates between London and America were 1s. for a single letter, 2s.
for a double letter, and so on. For transmission within the colonies the
rates were, broadly, for distances under 60 miles, 4d. the single
letter, 8d. the double letter, and so on; distances under 100 miles, for
a single letter 6d., and so in proportion for double and treble and
ounce letters.
These rates were, in general, higher than those which had been fixed by
the colonies under the Neale patent, but for several years they did not
produce sufficient revenue to meet expenses. In 1722 the
Postmasters-General were for the first time able to say that in the
future the Post Office in North America, even if it yielded no net
revenue, would no longer involve a charge, and there was a good prospect
of a profit. The Act of 1765 provided rates for the longer distances and
made a general reduction of nearly 30 per cent. The rates now became,
for a single letter, for conveyance for any distance not exceeding 60
miles, 4d.; from 60 to 100 miles, 6d.; from 100 to 200 miles, 8d.; for
each additional 100 miles, 2d.[143] In the intervening period the chief
events had been the appointment of Benjamin Franklin, in 1737, to be
Postmaster of Philadelphia, and in 1753, to be joint Postmaster-General
for British North America, and the acquisition of Canada in 1763. The
latter event had, indeed, been one of the reasons assigned for the
passing of the Act of 1765.[144]
Under Andrew Hamilton the posts had run only along the coast, the great
main route extending from Portsmouth, N.H., through Boston and New York
to Maryland and Virginia. Under his son, John Hamilton, who succeeded
him in the office, the posts were pushed inland as occasion offered or
circumstances demanded, and for these extensions John Hamilton adopted
the principle of establishing routes in those cases where the postage
was sufficient to maintain them. On such a basis the system could not,
however, be very largely developed. The circumstances of the country
made any great extension impossible, and in 1766 the posts still went
mainly along the sea coasts.[145]