the shipping companies are a little misleading. The payments were not
then, and are not now, made solely from regard to the fact that the
vessels convey mails. Other considerations, such as the desirability of
encouraging the shipping industry, its value to the commerce of the
nation, and the value of a strong mercantile marine as a naval reserve,
have always entered largely into the question. It was in accordance with
this view, and largely on account of abuses in the administration of the
services by the Post Office which had come to light, that the control of
the Post Office packet services and of contracts for the conveyance of
mails by sea was in 1837 transferred from the Post Office to the
Admiralty. The control was in 1860 retransferred to the Post Office, but
the amount of the subsidies paid to steamship companies conveying mails
has continued to be influenced by other than purely Post Office
considerations. The chief development in this direction has been a legal
decision obtained in 1889, in a dispute between the Post Office and the
Cunard Steamship Company, which arose from an attempt by the Post Office
to introduce the American system of despatching mails by the fastest
ships available, and paying, not a general subsidy, but a sum calculated
on the basis of the weight of mails carried. The High Court ruled that
the Postmaster-General is entitled to have all such mails as he may
think fit received on board any of the Company's ships and conveyed and
delivered at the ports of destination without delay.[699] Failing
agreement as to the payment to be made in respect of such services, the
Post Office can fall back on its statutory right to the conveyance by
merchant ship of all letter mails at the rate of a halfpenny a letter.
The extension of penny postage to all countries has been prevented
simply by financial considerations.[700] In 1910 the question of
establishing penny postage with France received a good deal of public
attention both in this country and in France, but the Government were
not prepared at that time to face the sacrifice of revenue.
* * * * *
III. THE THURN AND TAXIS POSTS IN GERMANY
The great number of the principalities which made up the Germany of the
early Middle Ages, the mutual jealousy of the princes, and the
indefinite authority of the Emperor, made the introduction of any sort
of general system of communication extremely difficult. But for a long
period before posts of the ordinary type were established in Germany,
there existed throughout the Empire a system of messengers
(_Boten-Anstalten_).
These establishments were maintained by the political administration, by
the scholastic institutions, by political corporations, by merchant
bodies, or by private individuals.[701] Their function was to effect the
exchange of the correspondence of their founders. In addition, the
occasional posts (_Metzger_), merchants travelling to the fairs,
judicial and Imperial messengers, and pilgrim monks were much employed
for the carrying of letters.
The system of _Boten-Anstalten_ was widely extended, and its functions
were not limited to the conveyance of letters.[702] Its messengers
travelled some of the great routes, such as Hamburg-Stettin-Danzig;
Hamburg-Leipzig-Nuremberg; Cologne-Frankfort-Augsburg; and these
services were more or less permanent in character. Services on other
routes were established to meet local or temporary needs, such as the
assembly of the Reichstag, the meeting of the Electors, Peace
Congresses, War Conferences, and fairs; and these services were
discontinued when the occasion which had required them disappeared.
The organization of this system of messengers resembled in many ways
that of ordinary posts: it was established and managed by the political
authorities; the services were regular; the routes were fixed and stages
were appointed; and the messengers undertook the conveyance of letters,
goods, and persons, by foot, horse, or wagon.[703] At a later date
letter-carriers were employed in some instances for the delivery of
letters conveyed by the messenger services. A charge of 3 pf. was
raised on letters so delivered, the delivery charge on letters obtained
directly from the _Botenmeister_ being 1 pf.[704]
The intellectual awakening of the early sixteenth century, the great
discoveries of that period and their effect on commerce, together with
the tendency then developing towards amalgamation of the principalities
and creation of larger political entities, all increased the necessity
for an efficient system of intercommunication. The result is seen in the
establishment of an Imperial system of posts.[705]
The regular Imperial posts were established towards the end of the
fifteenth century by the Emperor Maximilian I. Johann von Taxis was the
first Imperial Postmaster, and the earliest record of his tenure of the
office is in 1489.[706] A decree suppressing the system of
_Boten-Anstalten_ and the _Metzgerposten_ was issued, but these posts
continued, and it was discovered at a later date that their continuance
was not incompatible with the maintenance of a system of Imperial
posts.[707]
The Imperial posts were to provide more particularly for the
transmission of despatches, and their immediate object was to provide a
means of obtaining information regarding the Turks, and a means of
communication with the princes of neighbouring territories.[708] Their
history is inseparable from that of the family of Thurn and Taxis, to
whom their management was from the first entrusted. This family was of
Italian origin, and before the establishment of the Imperial posts,
Roger the First of Thurn and Taxis had established a horse-post between
Italy and the Tyrol, which proved of so much value to the Empire that
as a reward Roger was made a chevalier. On the routes along which the
Imperial posts were laid, stages were fixed at intervals of about 5
(German) miles, and messengers were stationed at each stage.[709] These
messengers from the first enjoyed the privilege of exemption from all
taxes and charges in all the countries through which the post routes
passed. The posts were solely for the service of the Emperor, and at his
charge; and at first, like the earlier messenger services, were
established temporarily for special purposes, such as the movements of
the Imperial Court, or to meet necessities arising from war; or
permanently to provide services between distant and newly acquired
territory.[710]
In 1500 Francis von Taxis was appointed _capitaine et ma[^i]tre de nos
postes_ at Ghent by Philip the Fair, son of the Emperor Maximilian I,
and in 1505 a convention was concluded between Philip and von Taxis
under which the latter undertook to establish a line of posts between
the Court of Maximilian I, the Court of the French King, and the Spanish
Court, for a payment of 12,000 livres a year. The German and Spanish
services were intended to maintain permanent and regular communications.
The French post was intended to facilitate diplomatic intercourse.[711]
The time occupied in the transmission of letters between Innsbruck and
Brussels at this period was 5-1/2 days in summer and 6-1/2 days in
winter; between Paris and Brussels 44 hours; and between Granada and
Brussels 15 days.
Owing to financial difficulties the payments to von Taxis from the royal
exchequer could not be kept up, and in order to maintain the service
another source of revenue had to be discovered. It was found in the
acceptance for transmission by the posts of private letters, and in
allowing the use of the posts by private persons desirous of travelling.
This was made part of the ordinary business of the posts, with the
reservation that the use of the posts by private persons should not
interfere with or impede the official service.[712]
In 1512 the Emperor Maximilian conferred on Francis von Taxis, and on
several others of his family, titles of hereditary nobility in the
Empire and in the Austrian and Burgundian dominions, together with the
dignity of Count Palsgrave.[713] In 1516 the Taxis posts were extended
to Verona, Rome, and Naples, and were improved and accelerated. In 1615
the office of Imperial Postmaster-General was conferred on Lamoral von
Taxis and his descendants as an hereditary fief.
The actual development of the posts was of a twofold character. At first
the Taxis family were able to establish their posts in various parts of
the Empire without opposition; the princes were themselves satisfied
with their messenger systems, and were indisposed to establish posts on
account of the heavy cost. But after a time, when the profitable
character of the Taxis posts became apparent,[714] the princes
questioned the right of the Imperial Postmaster-General to lay posts
within their territories, and claimed that they alone possessed that
right.[715] In 1597 the posts were proclaimed an Imperial
reservation,[716] but this theory was never accepted by the
princes.[717] The Taxis posts, therefore, never became general
throughout the Empire. Eights were obtained in certain States, so that
they became an important system reaching many parts of the Empire; but
they did not altogether supplant the territorial services.[718]
In the early part of the seventeenth century the struggle against the
monopoly of the Imperial posts developed. The States were jealous of the
growing power of Austria, and political affinities were weakening. There
was, moreover, some feeling against such an office being held by an
alien family.[719] The Palatinate, W[:u]rtemberg, Saxony, Brandenburg, and
Mecklenburg established posts within their respective territories.[720]
The whole question became involved with the disputes which led up to
the Thirty Years' War, and the princes found their position indirectly
strengthened by the Peace of Westphalia, which contained no settlement
of the disputes regarding the posts, but merely referred the question to
the next Reichstag. Attempts were made to extend the Imperial posts, but
much opposition was encountered. Nevertheless, the system continued to
expand and attained considerable dimensions. The family held the
exclusive right of carrying passengers as well as letters; and it was
estimated that during the eighteenth century the house of Thurn and
Taxis received a gross sum of 20,000 livres per day, and a net profit of
four millions a year. Some 20,000 men, and a greater number of horses,
were employed in the service.[721]
The Revolutionary Wars were disastrous to the system. The Taxis posts
were in many instances replaced by territorial posts,[722] and by the
Peace of Luneville (1801), which made the Rhine the boundary between
France and Germany, the family lost control of all their posts to the
west of the Rhine. They were, however, compensated for the loss of the
revenues of those posts by a grant of territory
(Reichs-Deputationshauptschluss of 25 February 1803).
In the following years the Prince of Taxis strengthened his position by
a series of agreements with the German States, but with the
establishment in 1806 of the Confederation of the Rhine and the
abdication of the Emperor, the Holy Roman Empire and the Imperial posts
fell together. In 1814 Prince Charles Anselm of Thurn and Taxis
attempted unsuccessfully to regain possession of the posts in the Low
Countries. The territorial posts were not, however, altogether
satisfactory, and the rights of the Taxis family were restored by the
Agreement of 1815, establishing the German Confederation; in pursuance
of which the family recovered the posts in Electoral Hesse in 1816, in
Schwarzburg-Rudolstadt, Oldenburg, and Saxe-Coburg in 1817,
Hesse-Darmstadt in 1818, and W[:u]rtemberg in 1819. The posts in other
States were recovered in subsequent years, and in 1848 the Taxis posts
comprised an area of 2,675 square (German) miles, with a yearly income
of a million Marks.[723] In most cases a rent was paid to the State for
the privilege of conducting the posts. Thus, W[:u]rtemberg received a
yearly payment of 70,000 florins, the Grand Duchy of Hesse of 25,000
florins, and Electoral Hesse of 40,000 thalers.[724] In addition, the
Governments of the respective States were given considerable privileges
in regard to free transmission of State correspondence, etc. The rates
of postage charged compared favourably with those charged in the States
in which territorial posts were established.[725] In 1850 the rates were
simplified by the introduction of a scale based on three distance zones:
not exceeding 15 miles, 4 kr. (1 sgr.); from 15 to 30 miles, 7 kr. (2
sgr.); and for distances exceeding 30 miles, 10 kr. (3 sgr.). In 1861
these rates were reduced to 3, 6, and 9 kr. respectively for the three
zones.[726] In addition there was a local rate of 2 kr. (1/2 sgr.) for
letters delivered within a distance of 3 miles. In some of the towns a
still lower local rate, 1 kr. (1/4 sgr.) was in operation.[727]
The Taxis posts were, however, still regarded with a good deal of
jealousy, although it was recognized that in some ways the system was
advantageous in providing a unified postal service for a large part of
Germany at a time when it would have been difficult to arrange directly
between the various States for the maintenance of a common service.
The situation was materially changed when, after the events of 1864-6,
Prussia absorbed the duchies of the Elbe, Hanover, Electoral Hesse, the
Grand Duchy of Hesse, Nassau and Frankfort. Prussia, of course, desired
to assume control of the posts in these territories, which formed a
large part of the whole Taxis system. After some discussion of the
rights of the Taxis family, as a result of which it appeared that
legally the system was well grounded, and could not be taken, therefore,
from the Taxis family without compensation, the Prussian Government
decided to buy up the rights of the family in the new Prussian
territory.[728] The taking over of these posts would have left so small
a system in the hands of the Taxis family that they preferred to
negotiate for the transfer of the whole system to Prussia. The
compensation to be paid was based mainly on consideration of the net
revenue of the Taxis posts.
During the years 1855-65 this had been as follows:--
Florins.
1855-6 405,582
1856-7 579,218
1857-8 692,884
1858-9 500,412
1859-60 638,801
1860-1 648,519
1861-2 464,751
1862-3 583,409
1863-4 753,917
1864-5 724,405[729]
The amount of compensation was agreed at three million Marks. The sum
was voted by the Prussian Parliament without debate, and on the 1st July
1867 Prussia assumed the control of the entire Taxis system of posts.
The administration was amalgamated with that of the ordinary Prussian
posts.
* * * * *
IV. PARCEL POST IN CANADA
Difficulties arising from the circumstances of the country made the
early establishment of a parcel post system impracticable.[730]
For many years, however, a strong feeling in favour of a parcel post
system existed, especially among the farmers of the West; and with the
establishment of a service in the United States in 1913 it became
impossible to withhold a similar service from Canada. The question was
discussed in Parliament in January 1913, and, as the immediate adoption
of a system was obviously desired, the Government undertook to give the
matter fullest consideration, with the view of submitting a scheme at an
early date. The matter was really of some urgency since, under an
existing Convention, although no internal parcel post service was in
operation, Canada was called upon to carry throughout her territory
parcels originating in the United States; and in June 1913, when the
success of the service in the United States was seen to be assured, a
Bill was introduced authorizing the establishment of a parcel post in
Canada.
There could be no question of applying a flat rate in a country of such
vast territories and scattered population;[731] and the Canadian system,
like the American, is based on zones of distance. The limits of the
zones correspond with the provincial boundaries. Each province forms a
zone, with a flat rate within its borders; a rate as for an additional
zone is charged on parcels crossing into an adjoining province; and a
rate as for a third zone on parcels crossing an intermediate province to
a third province; and so on. The three maritime provinces are grouped
together as one zone, and a special local zone rate is given for parcels
delivered within 20 miles of the place of posting. This local rate is
independent of the provincial boundaries. It is a concession to the
storekeepers of the smaller towns, given chiefly for their protection
against the competition of the great departmental stores of Montreal,
Toronto, and Winnipeg.
The determination of the actual amount of the rates was left to the Post
Office department, with the proviso that they must be such as would make
the service self-supporting.
The service was introduced in April 1914, with the following rates of
charge:--
(_a_) Five cents for the first pound and 1 cent for each additional
pound or fraction thereof, up to four pounds, and 2 cents for each
subsequent pound up to eleven pounds within a radius of 20 miles
from the place of mailing, irrespective of provincial boundaries.
(_b_) Ten cents for the first pound and 4 cents for each subsequent
pound or fraction thereof, for all points in the province in which
a parcel is posted, outside of the 20-mile radius.
(_c_) Ten cents for the first pound and 6 cents for each additional
pound or fraction thereof, for all points outside the province in
which a parcel is posted, and beyond the 20-mile radius, with an
additional charge of 2 cents a pound for each province that has to
be crossed to the destination of the parcel, not including the
province in which it is to be delivered, up to a maximum of 12
cents a pound.[732]
An additional charge to meet the extra cost of transportation is made on
parcels addressed to or posted at offices in certain outlying districts
when the parcels have to be conveyed on stage routes over 100 miles in
length.
Statistics of the number of parcels dealt with are not taken by the
Canada Post Office.
* * * * *
V. THE SUPPLEMENTAL SERVICES
In connection with the transmission of postal packets, other services,
which are supplemental, and in some cases complementary, have been
added, e.g. registration and insurance, in order that senders may
protect themselves against loss or damage of packets in the post.[733]
Closely allied to the transmission of ordinary letters is the
transmission of money from place to place, and from early times the Post
Office has also undertaken this function for appropriate fees. This is
the money order and postal order business. These services apply only to
a very small proportion of the total number of packets posted, and may
in general be regarded as exceptional.[734]
In addition to these supplemental functions, the Post Office has usually
been called upon to undertake services which have little or no relation
to the transmission of letters from place to place. Thus, the British
Post Office conducts a Savings Bank, undertakes the issue of certain
local taxation licences (gun and dog licences, etc.) on behalf of the
Inland Revenue Department and local authorities, pays Old Age Pensions,
sells stamps on behalf of the National Health and Unemployment Insurance
Commissioners, exhibits certain Government notices in the windows of
post offices, and, in general, stands ready to perform any service to
which, by reason of its ramifications reaching to the remotest part of
the kingdom, it may be specially well adapted.[735] In many countries
the Post Office has assumed the control of the telegraph or telephone
systems, or both--this, of course, largely in consideration of the
close affinity between the essential character of those
services--transmission from place to place of information and
intelligence--and the primary function of the Post Office; and in
consideration of the tendency of those services, like the letter
service, to develop on monopolistic lines.[736] In continental countries
the Government control of the telegraphs has been regarded as a military
necessity.[737] The assumption of these functions has no necessary
relation to the rates charged for the transmission of packets, but the
circumstances under which the services are conducted, whether at a
profit or at a loss, may indirectly affect the rates.
* * * * *
VI. POST OFFICE REVENUE
In England, Germany, and France the Post Office has, almost from the
first, been a source of revenue to the State. What has happened has been
that since the reform the Governments have been glad to take whatever
net revenue a penny rate would yield, but, in general, they have not
been prepared to raise that rate in order to obtain a greater
revenue.[738] The only one of the five countries which does not make,
and on principle does not wish to make, a revenue out of the Post Office
is the United States of America.
The penny letter rate is not by any means as low as the cost of the
service. It is, however, not a burdensome charge in any circumstances,
and, although so much greater than the cost, represents in a large
number of instances much less than the full measure of benefit which the
provision of the service confers on the beneficiary. This is, of course,
the ordinary case of the purchaser of a commodity securing a "consumer's
surplus."[739] Rates which yield a profit of 50 per cent. (pp. 76 and
311) must, however, be admitted to contain some element of taxation. In
France particularly the Post Office occupies a definite place in the
fiscal system.[740] There is, however, considerable diversity of opinion
among economists with regard to the theoretical character of this
revenue. Indeed, the general classification of public revenues is itself
not yet agreed upon.[741] Under any classification there is difficulty
in assigning a place for the Post Office revenue. With the simplest and
most fundamental division it has been regarded as falling under one or
other heading, according to the notion of the writer, or in accordance
with certain changes of conception based on variations in attendant
circumstances.[742]
The difficulty of classification arises from the fact that of the total
amount of the postage charges actually levied, only a portion can in any
case be regarded as taxation. A person who purchases a commodity from
the State, but in purchasing it is charged something more than its
actual value, is not taxed to the extent of the whole of the amount
which he is charged. There can be no taxation in that part of the amount
for which he receives equivalent value in the commodity purchased. It is
easy to say of the gross postal revenue that so much is tax (i.e. the
net revenue), and so much is cost of service (i.e. the actual expenses),
though it may not be easy to justify even this distinction;[743] but
what principle is to be followed in determining whether a particular
postage charge (e.g. the letter rate or the parcel rate), or any part of
it, is taxation?
Taxes are reckoned according to the rate of charge. Thus, the income tax
is 2s. 3d. in the pound on earned incomes; but approached in this way
postage is not a tax. If the charge only covers the cost of the service,
there can be no tax.[744] And when there is a surplus (above normal
commercial profit) it cannot be argued that the whole charge becomes a
tax. The solution seems to be that in such a case it is neither tax nor
industrial price. It contains elements of both, and cannot be classed
wholly under either.[745]
The differing analyses of Post Office revenue result largely from their
being based on consideration of the balance-sheet of the Post Office, as
indicating whether postal charges are to be regarded as taxes.[746] The
character of postal charges should not, however, be determined by
reference solely to the amount of the surplus revenue. The true
classification rests on the conception that the character of public
revenue (including Post Office revenue) varies with varying
circumstances.[747]