An individual, whose name and residence are, for obvious reasons, suppressed, gave the committee a full description of these private posts. He said that, in the year 1836, he kept an account of his letters; that the number sent by the post-office was 2068, and those sent by other means were 5861. Of these, about 5000 were to places within twenty miles, all of which were sent for 1d. each. Some carriers made it their sole business to carry letters. Some of them travelled on foot; others went by the stage coach to the place, and then distributed their letters. He found the practice prevailing when he began his apprenticeship in 1807. The population of the district thus accommodated was from 300,000 to 500,000. The practice was notorious, and used by all persons engaged in business. The object of a great deal of the correspondence was to convey orders, notes of inquiry, and other information to and from the small manufacturers, to whom it would be a tax of twenty-five per cent. on their earnings, if the letters were sent through the post-office at 4d. The letters were commonly wrapped up in brown paper, or tied with a string, some directed and some not. Very few persons thought about the practice being illegal. He had never heard of an attempt by the post-office to institute legal proceedings. It would absorb the whole revenue of the post-office to carry on the prosecutions that would be required to stop it, and without any effect, as most of the carriers were worth nothing. To suppress it by law, would be very injurious to the trade of the place. The only way to supersede it is to reduce the postage to 1d. Were this done, the post-office would be preferred, for its greater certainty, even though the carriers would go for a halfpenny. The post-office would unquestionably receive more money by the change.“E. F.”, a manufacturer, described what he called thefree-packetsystem. Those manufacturers who did much business with London, in forwarding parcels through the stage coaches, were allowed by the coach proprietors to send a“free-packet,”without any charge, except 4d. for booking; and this package contained not only the letters and patterns of the house itself, but of others, who thus evade the postage.“G. H.”had been a carrier, from a town in Scotland to other towns. There were six carriers, and they all carried letters, generally averaging fifty a day, and realizing from 6s. to 7s. per day, although there were four mails a-day running from the town. The business was kept in a manner secret. Reducing the postage to 2d. would not stop the practice, because the carriers would still take the letters for 1d.; but a penny postage would bring all the letters into the post-office, and then the post-office would beat the smuggler.Mr. John Reid, of London, formerly an extensive bookseller in Glasgow said his house used to send out twenty to twenty-five letters a day, and scarcely ever through the post. Of 20,000 times of infringing the post-office laws, he was never caught but once, and then the government failed in proof, and he had the matter exposed as a grievance in the house of commons. He had seen a carrier in Glasgow have more than 300 letters at a time, which he delivered for 1d. Nearly all the correspondence between Glasgow and Paisley, was by carriers. There were 200 carriers came to Glasgow daily. There was as regular a system of exchanging bags, as in the post-office. There was not much attempt at concealment; sometimes we got frightened, and sometimes we laughed at the postmasters. Of his own letters, about one in twenty of those sent, and one in twelve of those received, passed through the post-office. The only way to put an end to the smuggling of letters was to remove the inducement. He said he could send letters to every town in Scotland. He could do it in more ways than one. He declined to state in what ways he would do it, because the disclosure would knock up some convenient modes he had of ending his own letters, and those of others. He said he would never use the post-office in an illegal manner, as by writing on newspapers and the like, because that would be dishonestly availing himself of the post-office, without[pg 013]paying for it. But he consideredhe had a right to send his letters as he pleased. He did not feel it his duty to acquiesce in a bad law, but thought every good man should set himself against a bad law, in order to get it repealed. Some of the methods of evading postage, practised in Scotland, are amusing. One was through what he called“family boxes.”When a student from the country comes to Glasgow to attend the college, he usually receives a box, once or twice a week, from his family, who send him cheese, meal, butter, cakes, &c., which come cheaper from the farm-house than he can purchase them in town. Probably, also, his clean linen comes in this way. The moment it was known that any family had a son at the university, the neighbors made a post-office of that farm-house.The committee, in their report, concur in the opinion expressed by almost all the officers of the department, that it was not by stronger powers to be conferred by the legislature, nor by rigor in the exercise of those powers, that illicit conveyance could be suppressed. The post-office must be enabledto recommend itself to the public mind. It must secure to itself a virtual monopoly, by the greater security, expedition, punctuality,and cheapness, with which it does its work, than can be reached by any private enterprise.With this nearly all the witnesses also agree, although some of them thought it possible that a less extreme reduction of the rate of postage might have kept out the private mails, if it had taken place earlier, before these illicit enterprises had obtained so firm a footing.Lord Ashburton, who was examined before the committee, said that had a uniform rate of 2d., or even 3d. been adopted heretofore, most persons would sooner pay it than look out for the means of evading it.Mr. Cobden, of Manchester, said a 6d. rate between Manchester and London would increase but slightly the number of letters, since the sending of letters clandestinely has become a trade, which would not be easily broken down. The railroads which are now opening to all parts of the country will so increase the facilities for smuggling, asto counteract any reductionof from twenty to fifty per cent. on the postage. No small reduction will induce the people to write more. A reduction to one half of the present rates would certainly be a relief to his trade, as far as it went, that is, to all such as now pay the full rate; but he thinks it would not induce the poorer classes to use the post-office. It would occasion a loss to the revenue of fifty per cent.Mr. W. Brown, merchant of Liverpool, was sure a reduction to half the present rates would give satisfaction to the public, but would not meet the question, and would not prevent smuggling.I. J. Brewin, of Cirencester, one of the Society of Friends, considered the effect of a two penny rate would be, that the post-office would get the long jobs, but not the short ones.Lieutenant F. W. Ellis, auditor of district unions in Suffolk, under the poor law commissioners, said that 2d. would not have the effect of 1d. in bringing correspondence to the post-office, because by carriers, and in other ways, letters are now conveyed for 1d.The evidence seems to have produced a universal and settled conviction, that as far as the contraband conveyance of letters was an evil, either financial or social, there was no remedy for it but an absolute reduction of the postage to 1d. There were large portions of the country in which the government could control the postage at a higher rate, 2d. or even 3d.; but in the densely populated districts, where the greatest amount of correspondence arises, and where are also the greatest facilities for evading postage, no rate higher than 1d. would secure the whole correspondence to the mails. They therefore[pg 014]left the penal enactments just as they were, because they might be of some convenience in some cases. Mr. Hill declared his opinion that it would be perfectly safe to throw the business open to competition, for that the command of capital, and other advantages enjoyed by the post-office, would enable it to carry letters more cheaply and punctuallythan can be doneby private individuals. And the result shows that he was right; for the contraband carriage of letters is put down. The Companion to the British Almanac, for 1842, says,“The illicit transmission of letters, and the evasions practised under the old system to avoid postage,have entirely ceased.”All this experience, and all these sound conclusions, are doubtless applicable in the United States, with the additional considerations, of the great extent of country, the limited powers of the government, the entire absence of an organized police, and the fact that the federal government is to so great a degree regarded as a stranger in the States. Shall a surveillance, which the British government has abandoned as impracticable, be seriously undertaken at this day by the congress of the United States?III.The Postage Law of 1845.The Postage Act, passed March 3, 1845, which went into operation on the 1st of July of that year, was called forth by a determination to destroy the private mails; and this object gave character to the act as a whole. The reports of the postmaster-general, and of the post-office committees in both houses of congress, show that the end which was specially aimed at was to overthrow these mails. The Report of the House Committee, presented May 15, 1844, says:“Events are in progress of fatal tendency to the post-office department, and its decay has commenced. Unless arrested by vigorous legislation, it must soon cease to exist as a self-sustaining institution, and either be cast on the treasury for support, or suffered to decline from year to year, till the system has become impotent and useless. The last annual report of the postmaster-general shows that, notwithstanding the heavy retrenchments he had made, the expenditures of the department for the year ending June 30, 1843, exceeded its income by the sum of $78,788. The decline of its revenue during that year was $250,321; and the investigations made into the operations of the current year, indicate a further and an increasing decline, at the rate of about $300,000 a year.”“This illicit business has been some time struggling through its incipient stages; for it was not until the year commencing the 1st July, 1840, that it appears to have made a serious impression upon the revenues of the department. It has now assumed a bold and determined front, and dropped its disguises; opened offices for the reception of letters, and advertised the terms on which they will be despatched out of the mail.”“The revenue for the year ending June 30, 1840, was $4,539,265; for the last year it was $4,295,925; and indications show that for the present year it will not be more than $3,995,925.”“The number of chargeable letters in circulation, exclusive of dead letters, during the year ending June 30, 1840, may be assumed at 27,535,554. The annual number now reported to be in circulation, is 24,267,552. Thus, 3,268,000 letters a year and $543,340 of annual revenue, are the spoils taken from the mails by cupidity.”[pg 015]The Report of the Senate Committee has this remark:“We have seen in the outset that somethingmustbe done; that the revenues of the department are rapidly falling off, and a remedy must in some way be found for this alarming evil, or the very consequences so much dreaded by some from the reduction proposed, will inevitably ensue; namely, a great curtailment of the service, or a heavy charge upon the national treasury for its necessary expenses. It is believed that in consequence of the disfavor with which the present rates and other regulations of this department are viewed, and the open violations of the laws before adverted to, that not more than, if as much as one half the correspondence of the country passes through the mails; the greater part being carried by private hands, or forwarded by means of the recently established private expresses, who perform the same service, at much less cost to the writers and recipients of letters than the national post-office. It seems to the committee to be impossible to believe that there are but twenty-four or twenty-seven millions of letters per year, forwarded to distant friends and correspondents in the United States, by a population of twenty millions of souls; whilst, at the same time, there aretwo hundred and four millionsand upwards of letters passing annually through the mails of Great Britain and Ireland, with a population of only about twenty-seven millions.”The Senate Report recommended the reduction of the rates of postage to five and ten cents, an average of seven and a half cents, with a very great restriction of the franking privilege, on which it was confidently estimated that the revenues of the department, for the first year of the new system, would be $4,890,500; and that the number of chargeable letters would be sixty millions. The House Report recommended stringent measures to suppress the private mails, with the abolition of franking, without any reduction of postage, except to substitute federal coin for Spanish. It estimated the increase of letters to be produced by reducing the rates to five and ten cents, at only thirty per cent. in number, thus reducing the postage receipts at once to two and a half millions of dollars. It will be seen that each of these calculations has been proved to be erroneous.The great postage meeting in New York, held in December, 1843, had asked for a uniform rate of five cents. After stating the advantages of the English system, their committee still hung upon the length of the routes in this country as a reason against the adoption of the low rate of postage. They said,“It is plain that a similar system may be introduced with equally satisfactory results in the United States. On account, however, of the vast distances to be traversed by the mail-carriers, and the great difficulties of travel in the unsettled portions of our country, our petition asks that the rate be reduced to five cents for each letter not more than half an ounce in weight—which is more than double the uniform postage in Great Britain. It is a rate which would not only secure to the post-office the transport of nearly all the letters which are now forwarded through private channels, but it would largely increase correspondence, both of business and affection.“Above all, thefranking privilegeshould be abolished. Unless this is done, nothing can be done. It will be impossible, without drawing largely upon the legitimate sources of the national revenue, to sustain the post-office by any rates whatsoever, if this franking privilege shall continue to load the mails with private letters which everybody writes, and public documents which nobody reads.”The bill was passed, but the franking privilege was continued, and yet the Postmaster-General has told us that the current income of the department is equal to its expenses. The predictions to the contrary were very confident. Some of the gloomy forebodings then uttered, are worthy of being recalled at this time.[pg 016]“The post-office department estimates that the deficiency in the revenue of the department, under the new law, will be about $1,500,000, this year.”—Boston Post.“An additional tax of $1,500,000, to be raised to meet the deficiencies of the department, in a single year, must principally come from the pockets of farmers, (who write few letters, and are consequently less benefited by the reduction of postage,) in the shape of additional tariff duties upon articles which they consume.”—New Hampshire Patriot.“A Caution.—Some people may be deceived on the subject of cheap postage, unless they take a‘sober second thought.’A part of those who are so strenuous for cheap postage are not quite so disinterested as would at first appear. They are seeking to pay their postage bills out of other people's pockets. Look at this matter. I am an industrious mechanic, for example, and I have little time to write letters. My neighbor publishes school-books, and he wishes to be sending off letters, recommendations, puffs, &c., by the hundred and by the thousand. This is his way of making money. Now, he wishes the expenses of the post-office department to be paid out of the treasury, and then I shall have to help him pay his postage, while he will only pay his national tax, according to his means, as I do mine. If he is making his money by sending letters, he should pay the whole cost of carrying those letters. I ought not to pay any part of it, in the way of duties on sugar, &c. Let every man pay his own postage. Is not this fair? But this will not be the case if the post-office department does not support itself. The cheap postage system may injure the poor man, instead of helping him.”—Philad. North American.“As for the matter of post-office reform, and reduction of the rates of postage, there are notone thousandconsiderate and reflecting people, in the Union, who desire or demand anything of the kind.“The commercial and mercantile classes have not desired‘reform;’and the rural and agricultural classes, the planters of the South, and the corn and wheat growers of the West, the mechanics and laboring classes, are not disposed to betaxedenormously to support a post-office department to gratify the avarice and cupidity of a body of sharpers and speculators.”—Madisonian.“The New Postage Law.—The following statement has been furnished us of the amount of postage chargeable on letters forwarded by the New York and Albany steamboats:The last thirteen days of June, $99.66First thirteen days of July, (same route,) 53.90Decrease, $45.76.Albany Argus.“I inquired at the post-office to-day for information. One of the gentlemanly clerks of that establishment said to me,‘Well, Mr. Smith, I can't give you all the information you desire, but I can say thus much. I this morning made up a mail for Hudson; it amounted toseventy cents; the same letters under the old law, and in the same mail, would have paidseven dollars. Now you can make your own deductions.’I then inquired of the same gentleman, if the increase of letters had been kept up since the 1st of July. He replied‘no,’but added,‘the increase of numbers is somewhat encouraging, but not sufficiently so to justify the belief that the new law will realize the hopes of its advocates.’”—N. Y. Correspondent of Boston Post.“From the city post-office we learn that the number of letters, papers, and packages, passing through their hands, unconnected with the business of the government, has increased about 33 per cent., when compared with the business of the month of June. The gross amount of proceeds from postage on these has fallen off nearly 66 per cent., while the postage charged to the government for its letters, &c., received and sent, is enormous. For the post-office department alone, it is said to reach near $40,000 for the month just past.”—Washington Union, Aug. 2.“We observe in the Eastern papers some paragraphs about the working of the new law, in which they suppose it will work well. Unquestionably it will work well for those who have to pay the postage; but as to therevenue, it will not yield even as much as the opponents of the system supposed. We do not believe the receipts will equal one half received under the old system. We are told that the experience of the first week in Cincinnati does not show more thanone quarterthe receipts.“Private correspondence is increased a little; but the falling off in the mercantile increase is immense. It cannot be otherwise; for many letters now pay 10 cents which formerly paid a dollar. Double and treble letters pay no more than single letters. In large cities three-fourths of the postage is paid bybusiness letters. These[pg 017]letters are nearly all double and treble. A double letter from Cincinnati to New York, Philadelphia, Boston, Baltimore, or New Orleans, before, paid 50 cents; now it pays 10 cents. The largest portion of postage is reduced toone-fifthpart of the former postage.“We are well pleased, however, that it will turn out as it will. The law will be too popular with the people to be repealed; and it will oblige Mr. James K. Polk's administration to provide ways and means out of the tariff to meet a deficiency of two millions in the postage. This will work favorably to the tariff.“All things will come right in the end. The lower the postage the more economical the post-office department must be, and the more money the government must raise from the tariff.”—Cleveland Herald.“Mr. McDuffie is reported to have made the following correct and just remarks, showing he understands well the operations of that Department. If the bill shall become a law, our word for it, that in less than six months one-fourth the offices in the Union will be discontinued, because nobody will be found who will keep them. But let the bill go into operation, and in less than twelve months the very clamorers for low rates of postage will become so sick of it, that they will be the first to unite in demanding its repeal. If we supposed our advice would have any influence, we would recommend to the Department and all Postmasters to hold on to the old books, arrangements and fixtures, even if the bill does pass, because in two weeks after Congress shall meet next year, it will be repealed and the old order restored.”—Kentucky Yeoman.“‘Mr. McDuffie rose, evidently much excited, and after expressing his regret that bodily infirmity disabled him to give the strength of his convictions in regard to the evils which would flow from the bill, he protested against its passage, as a measure more radical and revolutionary than anything that had ever been done by Congress. He denounced it as most unjust. It removes the burden from those who ought to have it, the manufacturers and merchants of the North, and throws it upon the farmers of the South and West, who are already oppressed by the tariff, and who will have to pay the expense by a tax on their necessaries.“‘You will sacrifice the intelligence of the people to the rapacity of the manufacturers. He could not imagine that the agriculturist anywhere could feel postage as a burden; it is but a moderate compensation for services rendered by the government. A poor man pays $10 duty on his sugar, salt and iron, and now you make him pay the postage. You will break up one half of the smaller offices, you will in ten years make the post-office the greatest organ of corruption the country has ever seen, and the man who wields its patronage can command the sceptre. By throwing it on the treasury, you destroy the responsibility of the head of the department, and in ten years you will have it cost you ten millions of dollars.’”Instead of a revenue of nearly four millions, it is therefore probable that the revenue of the first year of the experiment will not much exceed a million and a half. It will be remembered that Congress appropriated $750,000 to make up the expected deficiency; but this will fall far below the necessities of the service; and it is very probable that this sum will be consumed in the payments of the contracts for the two first quarters. They are very busy at the Department sending off letter balances, the postage of which will of course constitute a charge on the Treasury; and as the postage on each of these packets will amount to about three times as much as the first cost of the balances, the Department will make money out of this transaction.—Charleston Mercury.“I voted against this act. It is probable that a reduction might have been made in the rates of postage which would not have diminished the amount of revenue; but the reduction made by this act is too great, and will have the effect of throwing the Post-Office Department as a heavy charge on the general treasury, which has not been the case heretofore. The post-office tax was the only one in which the North and the East bore their share equally with the South and the West. We would all like to have cheap postage; and if that were the only consideration involved, I would have voted for the act; but there were others which influenced me to oppose it. The reduction of postage will cause a diminution in the post-office revenue, which must be supplied by thegeneral treasury. The treasury collects the revenue which must supply this deficiency, by a duty levied on imports; so that the tax taken off of themail correspondencewill have to be collected onsalt,iron,sugar,blankets, and other articles which we buy from the stores. The manufacturing States profit by this, because it aids theprotectivepolicy. I might add other objections, but deem it unnecessary at present.”—Letter of Hon. D. S. Reid, of ——, to his constituents.[pg 018]The Postmaster-General, in his report made Dec. 1, 1845, says:“So far as calculations can be relied on, from the returns to the department, of the operation of the new postage law, for the quarter ending 30th September last, the deficiency for the current year will exceed a million and a quarter of dollars; and there is no reasonable ground to believe that, without some amendment of that law, it will fall short of a million of dollars for the next year.”The actual deficiency for the year ending June 30, 1846, was only $589,837; and for the second year above alluded to, ending June 30, 1847, it was but $33,677. And the Postmaster-General's report for December, 1847, estimates the resources of the department for the year ending June 30, 1848, at $4,313,157, and the expenditures at $4,099,206, giving an actual surplus of $213,951. If this expectation should be realized, (and there is hardly a possibility but that it should be exceeded), the income will exceed the annual average receipts for the nine years before the reduction of postage, $51,467. The Postmaster-General ascribes the increase solely to“the reduction in the rates of postage,”while nearly a million of dollars are saved in the expenditures by the provision of the law of 1845, directing the contracts to be let to the lowest bidder, without reference to the transportation in coaches. So far, therefore, the triumph of the law of 1845 has been complete. It has proved that the same economic law exists here as in England, by which reduction of price leads to increase of consumption.On the other point, however, of meeting the wants of the people, so as to bring all the correspondence of the country into the mails, its success is very far from being equally satisfactory. The five and ten cents' postage does not have the effect of suppressing the private mails and illicit transportation of letters.The report of the House Committee in 1844, showed beforehand that such a reduction could not have the effect here, just as the parliamentary report had shown in 1838, that nothing but an absolute reduction to 1d.could suppress the private mails in England.“Individuals can prosecute on all the large railroad and steamboat routes between the great towns, as now, a profitable business in conveying letters at three and five cents, where the government would ask the five and ten cents postages.”Hill's New Hampshire Patriot said, shortly after the act went into operation:“Private expresseshave notbeen discontinued in this quarter. Far from it. They are now doing as large a business as ever, carrying letters at half the government rates. And, strange as it may appear, they appear to be sustained by public opinion. The new postage act did not abate what is called‘private enterprise,’and the act itself, it is thought, will soon be found to be insufficient.”The report of the Postmaster-General in 1845, speaks of a practice of enveloping many letters, written on very thin paper, in one enclosure, paying postage by the half-ounce, and thus reducing the postage on each to a trifle.“An incident recently occurred which will forcibly illustrate the injurious effects of such a practice upon the revenues of the department. A large bundle of letters was enveloped and sealed, marked‘postage paid, $1.60.’By some accident in the transportation, the envelope was so much injured as to enable the postmaster to see[pg 019]that it contained one hundred letters to different individuals, evidently designed for distribution by the person to whom directed, and should have been charged ten dollars. The continuance of this practice would, in a short time, deprive the department of a large proportion of its legitimate income. The department has no power to suppress it, further than to direct the postages to be properly charged, whenever such practices are detected. This has also introduced a species of thin, light paper, by which five or six letters may be placed under one cover, and still be under the half-ounce.”He adds:“The practice of sending packages of letters through the mails to agents, for distribution, has not entirely superseded the transmission of letters, over post roads, out of the mails, by the expresses. The character of this offence is such as to render detection very uncertain, full proof almost impossible, conviction rare. The penalties are seldom recovered after conviction, and the department rarely secures enough to meet the expenses of prosecution. If the officers of the department were authorized in proper cases to have the persons engaged in these violations of the law arrested, their packages, trunks, or boxes, seized and examined before a proper judicial officer, and, when detected in violating the law, retained for the examination of the court and jury, it is believed that the practice could be at once suppressed.”In his last report, December, 1847, he also says that,“Private expresses still continue to be run between the principal cities, and seriously affect the revenues of the department, from the want of adequate powers for their suppression.”The complaint is continually, of a want of adequate powers to suppress the practice. The law of 1845 has gone as far as could be desired in the severity of penalties and the extent of their application, involving in heavy fines every person who shall send or receive letters; and every stage-coach, railroad car, steamboat, or other vehicle or vessel—its owners, conductors and agents, which may knowingly be employed in the conveyance of letters, or in the conveyance of any person employed in such conveyance, under penalty of $50 for each letter transported. What the post-office department would deem“adequate powers”for the suppression of illicit letter-carrying, may be seen in the following extract of a bill, which was actually reported by the post-office committee of the House of Representatives, and“printed by order of the House:”
An individual, whose name and residence are, for obvious reasons, suppressed, gave the committee a full description of these private posts. He said that, in the year 1836, he kept an account of his letters; that the number sent by the post-office was 2068, and those sent by other means were 5861. Of these, about 5000 were to places within twenty miles, all of which were sent for 1d. each. Some carriers made it their sole business to carry letters. Some of them travelled on foot; others went by the stage coach to the place, and then distributed their letters. He found the practice prevailing when he began his apprenticeship in 1807. The population of the district thus accommodated was from 300,000 to 500,000. The practice was notorious, and used by all persons engaged in business. The object of a great deal of the correspondence was to convey orders, notes of inquiry, and other information to and from the small manufacturers, to whom it would be a tax of twenty-five per cent. on their earnings, if the letters were sent through the post-office at 4d. The letters were commonly wrapped up in brown paper, or tied with a string, some directed and some not. Very few persons thought about the practice being illegal. He had never heard of an attempt by the post-office to institute legal proceedings. It would absorb the whole revenue of the post-office to carry on the prosecutions that would be required to stop it, and without any effect, as most of the carriers were worth nothing. To suppress it by law, would be very injurious to the trade of the place. The only way to supersede it is to reduce the postage to 1d. Were this done, the post-office would be preferred, for its greater certainty, even though the carriers would go for a halfpenny. The post-office would unquestionably receive more money by the change.“E. F.”, a manufacturer, described what he called thefree-packetsystem. Those manufacturers who did much business with London, in forwarding parcels through the stage coaches, were allowed by the coach proprietors to send a“free-packet,”without any charge, except 4d. for booking; and this package contained not only the letters and patterns of the house itself, but of others, who thus evade the postage.“G. H.”had been a carrier, from a town in Scotland to other towns. There were six carriers, and they all carried letters, generally averaging fifty a day, and realizing from 6s. to 7s. per day, although there were four mails a-day running from the town. The business was kept in a manner secret. Reducing the postage to 2d. would not stop the practice, because the carriers would still take the letters for 1d.; but a penny postage would bring all the letters into the post-office, and then the post-office would beat the smuggler.Mr. John Reid, of London, formerly an extensive bookseller in Glasgow said his house used to send out twenty to twenty-five letters a day, and scarcely ever through the post. Of 20,000 times of infringing the post-office laws, he was never caught but once, and then the government failed in proof, and he had the matter exposed as a grievance in the house of commons. He had seen a carrier in Glasgow have more than 300 letters at a time, which he delivered for 1d. Nearly all the correspondence between Glasgow and Paisley, was by carriers. There were 200 carriers came to Glasgow daily. There was as regular a system of exchanging bags, as in the post-office. There was not much attempt at concealment; sometimes we got frightened, and sometimes we laughed at the postmasters. Of his own letters, about one in twenty of those sent, and one in twelve of those received, passed through the post-office. The only way to put an end to the smuggling of letters was to remove the inducement. He said he could send letters to every town in Scotland. He could do it in more ways than one. He declined to state in what ways he would do it, because the disclosure would knock up some convenient modes he had of ending his own letters, and those of others. He said he would never use the post-office in an illegal manner, as by writing on newspapers and the like, because that would be dishonestly availing himself of the post-office, without[pg 013]paying for it. But he consideredhe had a right to send his letters as he pleased. He did not feel it his duty to acquiesce in a bad law, but thought every good man should set himself against a bad law, in order to get it repealed. Some of the methods of evading postage, practised in Scotland, are amusing. One was through what he called“family boxes.”When a student from the country comes to Glasgow to attend the college, he usually receives a box, once or twice a week, from his family, who send him cheese, meal, butter, cakes, &c., which come cheaper from the farm-house than he can purchase them in town. Probably, also, his clean linen comes in this way. The moment it was known that any family had a son at the university, the neighbors made a post-office of that farm-house.The committee, in their report, concur in the opinion expressed by almost all the officers of the department, that it was not by stronger powers to be conferred by the legislature, nor by rigor in the exercise of those powers, that illicit conveyance could be suppressed. The post-office must be enabledto recommend itself to the public mind. It must secure to itself a virtual monopoly, by the greater security, expedition, punctuality,and cheapness, with which it does its work, than can be reached by any private enterprise.With this nearly all the witnesses also agree, although some of them thought it possible that a less extreme reduction of the rate of postage might have kept out the private mails, if it had taken place earlier, before these illicit enterprises had obtained so firm a footing.Lord Ashburton, who was examined before the committee, said that had a uniform rate of 2d., or even 3d. been adopted heretofore, most persons would sooner pay it than look out for the means of evading it.Mr. Cobden, of Manchester, said a 6d. rate between Manchester and London would increase but slightly the number of letters, since the sending of letters clandestinely has become a trade, which would not be easily broken down. The railroads which are now opening to all parts of the country will so increase the facilities for smuggling, asto counteract any reductionof from twenty to fifty per cent. on the postage. No small reduction will induce the people to write more. A reduction to one half of the present rates would certainly be a relief to his trade, as far as it went, that is, to all such as now pay the full rate; but he thinks it would not induce the poorer classes to use the post-office. It would occasion a loss to the revenue of fifty per cent.Mr. W. Brown, merchant of Liverpool, was sure a reduction to half the present rates would give satisfaction to the public, but would not meet the question, and would not prevent smuggling.I. J. Brewin, of Cirencester, one of the Society of Friends, considered the effect of a two penny rate would be, that the post-office would get the long jobs, but not the short ones.Lieutenant F. W. Ellis, auditor of district unions in Suffolk, under the poor law commissioners, said that 2d. would not have the effect of 1d. in bringing correspondence to the post-office, because by carriers, and in other ways, letters are now conveyed for 1d.The evidence seems to have produced a universal and settled conviction, that as far as the contraband conveyance of letters was an evil, either financial or social, there was no remedy for it but an absolute reduction of the postage to 1d. There were large portions of the country in which the government could control the postage at a higher rate, 2d. or even 3d.; but in the densely populated districts, where the greatest amount of correspondence arises, and where are also the greatest facilities for evading postage, no rate higher than 1d. would secure the whole correspondence to the mails. They therefore[pg 014]left the penal enactments just as they were, because they might be of some convenience in some cases. Mr. Hill declared his opinion that it would be perfectly safe to throw the business open to competition, for that the command of capital, and other advantages enjoyed by the post-office, would enable it to carry letters more cheaply and punctuallythan can be doneby private individuals. And the result shows that he was right; for the contraband carriage of letters is put down. The Companion to the British Almanac, for 1842, says,“The illicit transmission of letters, and the evasions practised under the old system to avoid postage,have entirely ceased.”All this experience, and all these sound conclusions, are doubtless applicable in the United States, with the additional considerations, of the great extent of country, the limited powers of the government, the entire absence of an organized police, and the fact that the federal government is to so great a degree regarded as a stranger in the States. Shall a surveillance, which the British government has abandoned as impracticable, be seriously undertaken at this day by the congress of the United States?III.The Postage Law of 1845.The Postage Act, passed March 3, 1845, which went into operation on the 1st of July of that year, was called forth by a determination to destroy the private mails; and this object gave character to the act as a whole. The reports of the postmaster-general, and of the post-office committees in both houses of congress, show that the end which was specially aimed at was to overthrow these mails. The Report of the House Committee, presented May 15, 1844, says:“Events are in progress of fatal tendency to the post-office department, and its decay has commenced. Unless arrested by vigorous legislation, it must soon cease to exist as a self-sustaining institution, and either be cast on the treasury for support, or suffered to decline from year to year, till the system has become impotent and useless. The last annual report of the postmaster-general shows that, notwithstanding the heavy retrenchments he had made, the expenditures of the department for the year ending June 30, 1843, exceeded its income by the sum of $78,788. The decline of its revenue during that year was $250,321; and the investigations made into the operations of the current year, indicate a further and an increasing decline, at the rate of about $300,000 a year.”“This illicit business has been some time struggling through its incipient stages; for it was not until the year commencing the 1st July, 1840, that it appears to have made a serious impression upon the revenues of the department. It has now assumed a bold and determined front, and dropped its disguises; opened offices for the reception of letters, and advertised the terms on which they will be despatched out of the mail.”“The revenue for the year ending June 30, 1840, was $4,539,265; for the last year it was $4,295,925; and indications show that for the present year it will not be more than $3,995,925.”“The number of chargeable letters in circulation, exclusive of dead letters, during the year ending June 30, 1840, may be assumed at 27,535,554. The annual number now reported to be in circulation, is 24,267,552. Thus, 3,268,000 letters a year and $543,340 of annual revenue, are the spoils taken from the mails by cupidity.”[pg 015]The Report of the Senate Committee has this remark:“We have seen in the outset that somethingmustbe done; that the revenues of the department are rapidly falling off, and a remedy must in some way be found for this alarming evil, or the very consequences so much dreaded by some from the reduction proposed, will inevitably ensue; namely, a great curtailment of the service, or a heavy charge upon the national treasury for its necessary expenses. It is believed that in consequence of the disfavor with which the present rates and other regulations of this department are viewed, and the open violations of the laws before adverted to, that not more than, if as much as one half the correspondence of the country passes through the mails; the greater part being carried by private hands, or forwarded by means of the recently established private expresses, who perform the same service, at much less cost to the writers and recipients of letters than the national post-office. It seems to the committee to be impossible to believe that there are but twenty-four or twenty-seven millions of letters per year, forwarded to distant friends and correspondents in the United States, by a population of twenty millions of souls; whilst, at the same time, there aretwo hundred and four millionsand upwards of letters passing annually through the mails of Great Britain and Ireland, with a population of only about twenty-seven millions.”The Senate Report recommended the reduction of the rates of postage to five and ten cents, an average of seven and a half cents, with a very great restriction of the franking privilege, on which it was confidently estimated that the revenues of the department, for the first year of the new system, would be $4,890,500; and that the number of chargeable letters would be sixty millions. The House Report recommended stringent measures to suppress the private mails, with the abolition of franking, without any reduction of postage, except to substitute federal coin for Spanish. It estimated the increase of letters to be produced by reducing the rates to five and ten cents, at only thirty per cent. in number, thus reducing the postage receipts at once to two and a half millions of dollars. It will be seen that each of these calculations has been proved to be erroneous.The great postage meeting in New York, held in December, 1843, had asked for a uniform rate of five cents. After stating the advantages of the English system, their committee still hung upon the length of the routes in this country as a reason against the adoption of the low rate of postage. They said,“It is plain that a similar system may be introduced with equally satisfactory results in the United States. On account, however, of the vast distances to be traversed by the mail-carriers, and the great difficulties of travel in the unsettled portions of our country, our petition asks that the rate be reduced to five cents for each letter not more than half an ounce in weight—which is more than double the uniform postage in Great Britain. It is a rate which would not only secure to the post-office the transport of nearly all the letters which are now forwarded through private channels, but it would largely increase correspondence, both of business and affection.“Above all, thefranking privilegeshould be abolished. Unless this is done, nothing can be done. It will be impossible, without drawing largely upon the legitimate sources of the national revenue, to sustain the post-office by any rates whatsoever, if this franking privilege shall continue to load the mails with private letters which everybody writes, and public documents which nobody reads.”The bill was passed, but the franking privilege was continued, and yet the Postmaster-General has told us that the current income of the department is equal to its expenses. The predictions to the contrary were very confident. Some of the gloomy forebodings then uttered, are worthy of being recalled at this time.[pg 016]“The post-office department estimates that the deficiency in the revenue of the department, under the new law, will be about $1,500,000, this year.”—Boston Post.“An additional tax of $1,500,000, to be raised to meet the deficiencies of the department, in a single year, must principally come from the pockets of farmers, (who write few letters, and are consequently less benefited by the reduction of postage,) in the shape of additional tariff duties upon articles which they consume.”—New Hampshire Patriot.“A Caution.—Some people may be deceived on the subject of cheap postage, unless they take a‘sober second thought.’A part of those who are so strenuous for cheap postage are not quite so disinterested as would at first appear. They are seeking to pay their postage bills out of other people's pockets. Look at this matter. I am an industrious mechanic, for example, and I have little time to write letters. My neighbor publishes school-books, and he wishes to be sending off letters, recommendations, puffs, &c., by the hundred and by the thousand. This is his way of making money. Now, he wishes the expenses of the post-office department to be paid out of the treasury, and then I shall have to help him pay his postage, while he will only pay his national tax, according to his means, as I do mine. If he is making his money by sending letters, he should pay the whole cost of carrying those letters. I ought not to pay any part of it, in the way of duties on sugar, &c. Let every man pay his own postage. Is not this fair? But this will not be the case if the post-office department does not support itself. The cheap postage system may injure the poor man, instead of helping him.”—Philad. North American.“As for the matter of post-office reform, and reduction of the rates of postage, there are notone thousandconsiderate and reflecting people, in the Union, who desire or demand anything of the kind.“The commercial and mercantile classes have not desired‘reform;’and the rural and agricultural classes, the planters of the South, and the corn and wheat growers of the West, the mechanics and laboring classes, are not disposed to betaxedenormously to support a post-office department to gratify the avarice and cupidity of a body of sharpers and speculators.”—Madisonian.“The New Postage Law.—The following statement has been furnished us of the amount of postage chargeable on letters forwarded by the New York and Albany steamboats:The last thirteen days of June, $99.66First thirteen days of July, (same route,) 53.90Decrease, $45.76.Albany Argus.“I inquired at the post-office to-day for information. One of the gentlemanly clerks of that establishment said to me,‘Well, Mr. Smith, I can't give you all the information you desire, but I can say thus much. I this morning made up a mail for Hudson; it amounted toseventy cents; the same letters under the old law, and in the same mail, would have paidseven dollars. Now you can make your own deductions.’I then inquired of the same gentleman, if the increase of letters had been kept up since the 1st of July. He replied‘no,’but added,‘the increase of numbers is somewhat encouraging, but not sufficiently so to justify the belief that the new law will realize the hopes of its advocates.’”—N. Y. Correspondent of Boston Post.“From the city post-office we learn that the number of letters, papers, and packages, passing through their hands, unconnected with the business of the government, has increased about 33 per cent., when compared with the business of the month of June. The gross amount of proceeds from postage on these has fallen off nearly 66 per cent., while the postage charged to the government for its letters, &c., received and sent, is enormous. For the post-office department alone, it is said to reach near $40,000 for the month just past.”—Washington Union, Aug. 2.“We observe in the Eastern papers some paragraphs about the working of the new law, in which they suppose it will work well. Unquestionably it will work well for those who have to pay the postage; but as to therevenue, it will not yield even as much as the opponents of the system supposed. We do not believe the receipts will equal one half received under the old system. We are told that the experience of the first week in Cincinnati does not show more thanone quarterthe receipts.“Private correspondence is increased a little; but the falling off in the mercantile increase is immense. It cannot be otherwise; for many letters now pay 10 cents which formerly paid a dollar. Double and treble letters pay no more than single letters. In large cities three-fourths of the postage is paid bybusiness letters. These[pg 017]letters are nearly all double and treble. A double letter from Cincinnati to New York, Philadelphia, Boston, Baltimore, or New Orleans, before, paid 50 cents; now it pays 10 cents. The largest portion of postage is reduced toone-fifthpart of the former postage.“We are well pleased, however, that it will turn out as it will. The law will be too popular with the people to be repealed; and it will oblige Mr. James K. Polk's administration to provide ways and means out of the tariff to meet a deficiency of two millions in the postage. This will work favorably to the tariff.“All things will come right in the end. The lower the postage the more economical the post-office department must be, and the more money the government must raise from the tariff.”—Cleveland Herald.“Mr. McDuffie is reported to have made the following correct and just remarks, showing he understands well the operations of that Department. If the bill shall become a law, our word for it, that in less than six months one-fourth the offices in the Union will be discontinued, because nobody will be found who will keep them. But let the bill go into operation, and in less than twelve months the very clamorers for low rates of postage will become so sick of it, that they will be the first to unite in demanding its repeal. If we supposed our advice would have any influence, we would recommend to the Department and all Postmasters to hold on to the old books, arrangements and fixtures, even if the bill does pass, because in two weeks after Congress shall meet next year, it will be repealed and the old order restored.”—Kentucky Yeoman.“‘Mr. McDuffie rose, evidently much excited, and after expressing his regret that bodily infirmity disabled him to give the strength of his convictions in regard to the evils which would flow from the bill, he protested against its passage, as a measure more radical and revolutionary than anything that had ever been done by Congress. He denounced it as most unjust. It removes the burden from those who ought to have it, the manufacturers and merchants of the North, and throws it upon the farmers of the South and West, who are already oppressed by the tariff, and who will have to pay the expense by a tax on their necessaries.“‘You will sacrifice the intelligence of the people to the rapacity of the manufacturers. He could not imagine that the agriculturist anywhere could feel postage as a burden; it is but a moderate compensation for services rendered by the government. A poor man pays $10 duty on his sugar, salt and iron, and now you make him pay the postage. You will break up one half of the smaller offices, you will in ten years make the post-office the greatest organ of corruption the country has ever seen, and the man who wields its patronage can command the sceptre. By throwing it on the treasury, you destroy the responsibility of the head of the department, and in ten years you will have it cost you ten millions of dollars.’”Instead of a revenue of nearly four millions, it is therefore probable that the revenue of the first year of the experiment will not much exceed a million and a half. It will be remembered that Congress appropriated $750,000 to make up the expected deficiency; but this will fall far below the necessities of the service; and it is very probable that this sum will be consumed in the payments of the contracts for the two first quarters. They are very busy at the Department sending off letter balances, the postage of which will of course constitute a charge on the Treasury; and as the postage on each of these packets will amount to about three times as much as the first cost of the balances, the Department will make money out of this transaction.—Charleston Mercury.“I voted against this act. It is probable that a reduction might have been made in the rates of postage which would not have diminished the amount of revenue; but the reduction made by this act is too great, and will have the effect of throwing the Post-Office Department as a heavy charge on the general treasury, which has not been the case heretofore. The post-office tax was the only one in which the North and the East bore their share equally with the South and the West. We would all like to have cheap postage; and if that were the only consideration involved, I would have voted for the act; but there were others which influenced me to oppose it. The reduction of postage will cause a diminution in the post-office revenue, which must be supplied by thegeneral treasury. The treasury collects the revenue which must supply this deficiency, by a duty levied on imports; so that the tax taken off of themail correspondencewill have to be collected onsalt,iron,sugar,blankets, and other articles which we buy from the stores. The manufacturing States profit by this, because it aids theprotectivepolicy. I might add other objections, but deem it unnecessary at present.”—Letter of Hon. D. S. Reid, of ——, to his constituents.[pg 018]The Postmaster-General, in his report made Dec. 1, 1845, says:“So far as calculations can be relied on, from the returns to the department, of the operation of the new postage law, for the quarter ending 30th September last, the deficiency for the current year will exceed a million and a quarter of dollars; and there is no reasonable ground to believe that, without some amendment of that law, it will fall short of a million of dollars for the next year.”The actual deficiency for the year ending June 30, 1846, was only $589,837; and for the second year above alluded to, ending June 30, 1847, it was but $33,677. And the Postmaster-General's report for December, 1847, estimates the resources of the department for the year ending June 30, 1848, at $4,313,157, and the expenditures at $4,099,206, giving an actual surplus of $213,951. If this expectation should be realized, (and there is hardly a possibility but that it should be exceeded), the income will exceed the annual average receipts for the nine years before the reduction of postage, $51,467. The Postmaster-General ascribes the increase solely to“the reduction in the rates of postage,”while nearly a million of dollars are saved in the expenditures by the provision of the law of 1845, directing the contracts to be let to the lowest bidder, without reference to the transportation in coaches. So far, therefore, the triumph of the law of 1845 has been complete. It has proved that the same economic law exists here as in England, by which reduction of price leads to increase of consumption.On the other point, however, of meeting the wants of the people, so as to bring all the correspondence of the country into the mails, its success is very far from being equally satisfactory. The five and ten cents' postage does not have the effect of suppressing the private mails and illicit transportation of letters.The report of the House Committee in 1844, showed beforehand that such a reduction could not have the effect here, just as the parliamentary report had shown in 1838, that nothing but an absolute reduction to 1d.could suppress the private mails in England.“Individuals can prosecute on all the large railroad and steamboat routes between the great towns, as now, a profitable business in conveying letters at three and five cents, where the government would ask the five and ten cents postages.”Hill's New Hampshire Patriot said, shortly after the act went into operation:“Private expresseshave notbeen discontinued in this quarter. Far from it. They are now doing as large a business as ever, carrying letters at half the government rates. And, strange as it may appear, they appear to be sustained by public opinion. The new postage act did not abate what is called‘private enterprise,’and the act itself, it is thought, will soon be found to be insufficient.”The report of the Postmaster-General in 1845, speaks of a practice of enveloping many letters, written on very thin paper, in one enclosure, paying postage by the half-ounce, and thus reducing the postage on each to a trifle.“An incident recently occurred which will forcibly illustrate the injurious effects of such a practice upon the revenues of the department. A large bundle of letters was enveloped and sealed, marked‘postage paid, $1.60.’By some accident in the transportation, the envelope was so much injured as to enable the postmaster to see[pg 019]that it contained one hundred letters to different individuals, evidently designed for distribution by the person to whom directed, and should have been charged ten dollars. The continuance of this practice would, in a short time, deprive the department of a large proportion of its legitimate income. The department has no power to suppress it, further than to direct the postages to be properly charged, whenever such practices are detected. This has also introduced a species of thin, light paper, by which five or six letters may be placed under one cover, and still be under the half-ounce.”He adds:“The practice of sending packages of letters through the mails to agents, for distribution, has not entirely superseded the transmission of letters, over post roads, out of the mails, by the expresses. The character of this offence is such as to render detection very uncertain, full proof almost impossible, conviction rare. The penalties are seldom recovered after conviction, and the department rarely secures enough to meet the expenses of prosecution. If the officers of the department were authorized in proper cases to have the persons engaged in these violations of the law arrested, their packages, trunks, or boxes, seized and examined before a proper judicial officer, and, when detected in violating the law, retained for the examination of the court and jury, it is believed that the practice could be at once suppressed.”In his last report, December, 1847, he also says that,“Private expresses still continue to be run between the principal cities, and seriously affect the revenues of the department, from the want of adequate powers for their suppression.”The complaint is continually, of a want of adequate powers to suppress the practice. The law of 1845 has gone as far as could be desired in the severity of penalties and the extent of their application, involving in heavy fines every person who shall send or receive letters; and every stage-coach, railroad car, steamboat, or other vehicle or vessel—its owners, conductors and agents, which may knowingly be employed in the conveyance of letters, or in the conveyance of any person employed in such conveyance, under penalty of $50 for each letter transported. What the post-office department would deem“adequate powers”for the suppression of illicit letter-carrying, may be seen in the following extract of a bill, which was actually reported by the post-office committee of the House of Representatives, and“printed by order of the House:”
An individual, whose name and residence are, for obvious reasons, suppressed, gave the committee a full description of these private posts. He said that, in the year 1836, he kept an account of his letters; that the number sent by the post-office was 2068, and those sent by other means were 5861. Of these, about 5000 were to places within twenty miles, all of which were sent for 1d. each. Some carriers made it their sole business to carry letters. Some of them travelled on foot; others went by the stage coach to the place, and then distributed their letters. He found the practice prevailing when he began his apprenticeship in 1807. The population of the district thus accommodated was from 300,000 to 500,000. The practice was notorious, and used by all persons engaged in business. The object of a great deal of the correspondence was to convey orders, notes of inquiry, and other information to and from the small manufacturers, to whom it would be a tax of twenty-five per cent. on their earnings, if the letters were sent through the post-office at 4d. The letters were commonly wrapped up in brown paper, or tied with a string, some directed and some not. Very few persons thought about the practice being illegal. He had never heard of an attempt by the post-office to institute legal proceedings. It would absorb the whole revenue of the post-office to carry on the prosecutions that would be required to stop it, and without any effect, as most of the carriers were worth nothing. To suppress it by law, would be very injurious to the trade of the place. The only way to supersede it is to reduce the postage to 1d. Were this done, the post-office would be preferred, for its greater certainty, even though the carriers would go for a halfpenny. The post-office would unquestionably receive more money by the change.“E. F.”, a manufacturer, described what he called thefree-packetsystem. Those manufacturers who did much business with London, in forwarding parcels through the stage coaches, were allowed by the coach proprietors to send a“free-packet,”without any charge, except 4d. for booking; and this package contained not only the letters and patterns of the house itself, but of others, who thus evade the postage.“G. H.”had been a carrier, from a town in Scotland to other towns. There were six carriers, and they all carried letters, generally averaging fifty a day, and realizing from 6s. to 7s. per day, although there were four mails a-day running from the town. The business was kept in a manner secret. Reducing the postage to 2d. would not stop the practice, because the carriers would still take the letters for 1d.; but a penny postage would bring all the letters into the post-office, and then the post-office would beat the smuggler.Mr. John Reid, of London, formerly an extensive bookseller in Glasgow said his house used to send out twenty to twenty-five letters a day, and scarcely ever through the post. Of 20,000 times of infringing the post-office laws, he was never caught but once, and then the government failed in proof, and he had the matter exposed as a grievance in the house of commons. He had seen a carrier in Glasgow have more than 300 letters at a time, which he delivered for 1d. Nearly all the correspondence between Glasgow and Paisley, was by carriers. There were 200 carriers came to Glasgow daily. There was as regular a system of exchanging bags, as in the post-office. There was not much attempt at concealment; sometimes we got frightened, and sometimes we laughed at the postmasters. Of his own letters, about one in twenty of those sent, and one in twelve of those received, passed through the post-office. The only way to put an end to the smuggling of letters was to remove the inducement. He said he could send letters to every town in Scotland. He could do it in more ways than one. He declined to state in what ways he would do it, because the disclosure would knock up some convenient modes he had of ending his own letters, and those of others. He said he would never use the post-office in an illegal manner, as by writing on newspapers and the like, because that would be dishonestly availing himself of the post-office, without[pg 013]paying for it. But he consideredhe had a right to send his letters as he pleased. He did not feel it his duty to acquiesce in a bad law, but thought every good man should set himself against a bad law, in order to get it repealed. Some of the methods of evading postage, practised in Scotland, are amusing. One was through what he called“family boxes.”When a student from the country comes to Glasgow to attend the college, he usually receives a box, once or twice a week, from his family, who send him cheese, meal, butter, cakes, &c., which come cheaper from the farm-house than he can purchase them in town. Probably, also, his clean linen comes in this way. The moment it was known that any family had a son at the university, the neighbors made a post-office of that farm-house.The committee, in their report, concur in the opinion expressed by almost all the officers of the department, that it was not by stronger powers to be conferred by the legislature, nor by rigor in the exercise of those powers, that illicit conveyance could be suppressed. The post-office must be enabledto recommend itself to the public mind. It must secure to itself a virtual monopoly, by the greater security, expedition, punctuality,and cheapness, with which it does its work, than can be reached by any private enterprise.With this nearly all the witnesses also agree, although some of them thought it possible that a less extreme reduction of the rate of postage might have kept out the private mails, if it had taken place earlier, before these illicit enterprises had obtained so firm a footing.Lord Ashburton, who was examined before the committee, said that had a uniform rate of 2d., or even 3d. been adopted heretofore, most persons would sooner pay it than look out for the means of evading it.Mr. Cobden, of Manchester, said a 6d. rate between Manchester and London would increase but slightly the number of letters, since the sending of letters clandestinely has become a trade, which would not be easily broken down. The railroads which are now opening to all parts of the country will so increase the facilities for smuggling, asto counteract any reductionof from twenty to fifty per cent. on the postage. No small reduction will induce the people to write more. A reduction to one half of the present rates would certainly be a relief to his trade, as far as it went, that is, to all such as now pay the full rate; but he thinks it would not induce the poorer classes to use the post-office. It would occasion a loss to the revenue of fifty per cent.Mr. W. Brown, merchant of Liverpool, was sure a reduction to half the present rates would give satisfaction to the public, but would not meet the question, and would not prevent smuggling.I. J. Brewin, of Cirencester, one of the Society of Friends, considered the effect of a two penny rate would be, that the post-office would get the long jobs, but not the short ones.Lieutenant F. W. Ellis, auditor of district unions in Suffolk, under the poor law commissioners, said that 2d. would not have the effect of 1d. in bringing correspondence to the post-office, because by carriers, and in other ways, letters are now conveyed for 1d.The evidence seems to have produced a universal and settled conviction, that as far as the contraband conveyance of letters was an evil, either financial or social, there was no remedy for it but an absolute reduction of the postage to 1d. There were large portions of the country in which the government could control the postage at a higher rate, 2d. or even 3d.; but in the densely populated districts, where the greatest amount of correspondence arises, and where are also the greatest facilities for evading postage, no rate higher than 1d. would secure the whole correspondence to the mails. They therefore[pg 014]left the penal enactments just as they were, because they might be of some convenience in some cases. Mr. Hill declared his opinion that it would be perfectly safe to throw the business open to competition, for that the command of capital, and other advantages enjoyed by the post-office, would enable it to carry letters more cheaply and punctuallythan can be doneby private individuals. And the result shows that he was right; for the contraband carriage of letters is put down. The Companion to the British Almanac, for 1842, says,“The illicit transmission of letters, and the evasions practised under the old system to avoid postage,have entirely ceased.”All this experience, and all these sound conclusions, are doubtless applicable in the United States, with the additional considerations, of the great extent of country, the limited powers of the government, the entire absence of an organized police, and the fact that the federal government is to so great a degree regarded as a stranger in the States. Shall a surveillance, which the British government has abandoned as impracticable, be seriously undertaken at this day by the congress of the United States?III.The Postage Law of 1845.The Postage Act, passed March 3, 1845, which went into operation on the 1st of July of that year, was called forth by a determination to destroy the private mails; and this object gave character to the act as a whole. The reports of the postmaster-general, and of the post-office committees in both houses of congress, show that the end which was specially aimed at was to overthrow these mails. The Report of the House Committee, presented May 15, 1844, says:“Events are in progress of fatal tendency to the post-office department, and its decay has commenced. Unless arrested by vigorous legislation, it must soon cease to exist as a self-sustaining institution, and either be cast on the treasury for support, or suffered to decline from year to year, till the system has become impotent and useless. The last annual report of the postmaster-general shows that, notwithstanding the heavy retrenchments he had made, the expenditures of the department for the year ending June 30, 1843, exceeded its income by the sum of $78,788. The decline of its revenue during that year was $250,321; and the investigations made into the operations of the current year, indicate a further and an increasing decline, at the rate of about $300,000 a year.”“This illicit business has been some time struggling through its incipient stages; for it was not until the year commencing the 1st July, 1840, that it appears to have made a serious impression upon the revenues of the department. It has now assumed a bold and determined front, and dropped its disguises; opened offices for the reception of letters, and advertised the terms on which they will be despatched out of the mail.”“The revenue for the year ending June 30, 1840, was $4,539,265; for the last year it was $4,295,925; and indications show that for the present year it will not be more than $3,995,925.”“The number of chargeable letters in circulation, exclusive of dead letters, during the year ending June 30, 1840, may be assumed at 27,535,554. The annual number now reported to be in circulation, is 24,267,552. Thus, 3,268,000 letters a year and $543,340 of annual revenue, are the spoils taken from the mails by cupidity.”[pg 015]The Report of the Senate Committee has this remark:“We have seen in the outset that somethingmustbe done; that the revenues of the department are rapidly falling off, and a remedy must in some way be found for this alarming evil, or the very consequences so much dreaded by some from the reduction proposed, will inevitably ensue; namely, a great curtailment of the service, or a heavy charge upon the national treasury for its necessary expenses. It is believed that in consequence of the disfavor with which the present rates and other regulations of this department are viewed, and the open violations of the laws before adverted to, that not more than, if as much as one half the correspondence of the country passes through the mails; the greater part being carried by private hands, or forwarded by means of the recently established private expresses, who perform the same service, at much less cost to the writers and recipients of letters than the national post-office. It seems to the committee to be impossible to believe that there are but twenty-four or twenty-seven millions of letters per year, forwarded to distant friends and correspondents in the United States, by a population of twenty millions of souls; whilst, at the same time, there aretwo hundred and four millionsand upwards of letters passing annually through the mails of Great Britain and Ireland, with a population of only about twenty-seven millions.”The Senate Report recommended the reduction of the rates of postage to five and ten cents, an average of seven and a half cents, with a very great restriction of the franking privilege, on which it was confidently estimated that the revenues of the department, for the first year of the new system, would be $4,890,500; and that the number of chargeable letters would be sixty millions. The House Report recommended stringent measures to suppress the private mails, with the abolition of franking, without any reduction of postage, except to substitute federal coin for Spanish. It estimated the increase of letters to be produced by reducing the rates to five and ten cents, at only thirty per cent. in number, thus reducing the postage receipts at once to two and a half millions of dollars. It will be seen that each of these calculations has been proved to be erroneous.The great postage meeting in New York, held in December, 1843, had asked for a uniform rate of five cents. After stating the advantages of the English system, their committee still hung upon the length of the routes in this country as a reason against the adoption of the low rate of postage. They said,“It is plain that a similar system may be introduced with equally satisfactory results in the United States. On account, however, of the vast distances to be traversed by the mail-carriers, and the great difficulties of travel in the unsettled portions of our country, our petition asks that the rate be reduced to five cents for each letter not more than half an ounce in weight—which is more than double the uniform postage in Great Britain. It is a rate which would not only secure to the post-office the transport of nearly all the letters which are now forwarded through private channels, but it would largely increase correspondence, both of business and affection.“Above all, thefranking privilegeshould be abolished. Unless this is done, nothing can be done. It will be impossible, without drawing largely upon the legitimate sources of the national revenue, to sustain the post-office by any rates whatsoever, if this franking privilege shall continue to load the mails with private letters which everybody writes, and public documents which nobody reads.”The bill was passed, but the franking privilege was continued, and yet the Postmaster-General has told us that the current income of the department is equal to its expenses. The predictions to the contrary were very confident. Some of the gloomy forebodings then uttered, are worthy of being recalled at this time.[pg 016]“The post-office department estimates that the deficiency in the revenue of the department, under the new law, will be about $1,500,000, this year.”—Boston Post.“An additional tax of $1,500,000, to be raised to meet the deficiencies of the department, in a single year, must principally come from the pockets of farmers, (who write few letters, and are consequently less benefited by the reduction of postage,) in the shape of additional tariff duties upon articles which they consume.”—New Hampshire Patriot.“A Caution.—Some people may be deceived on the subject of cheap postage, unless they take a‘sober second thought.’A part of those who are so strenuous for cheap postage are not quite so disinterested as would at first appear. They are seeking to pay their postage bills out of other people's pockets. Look at this matter. I am an industrious mechanic, for example, and I have little time to write letters. My neighbor publishes school-books, and he wishes to be sending off letters, recommendations, puffs, &c., by the hundred and by the thousand. This is his way of making money. Now, he wishes the expenses of the post-office department to be paid out of the treasury, and then I shall have to help him pay his postage, while he will only pay his national tax, according to his means, as I do mine. If he is making his money by sending letters, he should pay the whole cost of carrying those letters. I ought not to pay any part of it, in the way of duties on sugar, &c. Let every man pay his own postage. Is not this fair? But this will not be the case if the post-office department does not support itself. The cheap postage system may injure the poor man, instead of helping him.”—Philad. North American.“As for the matter of post-office reform, and reduction of the rates of postage, there are notone thousandconsiderate and reflecting people, in the Union, who desire or demand anything of the kind.“The commercial and mercantile classes have not desired‘reform;’and the rural and agricultural classes, the planters of the South, and the corn and wheat growers of the West, the mechanics and laboring classes, are not disposed to betaxedenormously to support a post-office department to gratify the avarice and cupidity of a body of sharpers and speculators.”—Madisonian.“The New Postage Law.—The following statement has been furnished us of the amount of postage chargeable on letters forwarded by the New York and Albany steamboats:The last thirteen days of June, $99.66First thirteen days of July, (same route,) 53.90Decrease, $45.76.Albany Argus.“I inquired at the post-office to-day for information. One of the gentlemanly clerks of that establishment said to me,‘Well, Mr. Smith, I can't give you all the information you desire, but I can say thus much. I this morning made up a mail for Hudson; it amounted toseventy cents; the same letters under the old law, and in the same mail, would have paidseven dollars. Now you can make your own deductions.’I then inquired of the same gentleman, if the increase of letters had been kept up since the 1st of July. He replied‘no,’but added,‘the increase of numbers is somewhat encouraging, but not sufficiently so to justify the belief that the new law will realize the hopes of its advocates.’”—N. Y. Correspondent of Boston Post.“From the city post-office we learn that the number of letters, papers, and packages, passing through their hands, unconnected with the business of the government, has increased about 33 per cent., when compared with the business of the month of June. The gross amount of proceeds from postage on these has fallen off nearly 66 per cent., while the postage charged to the government for its letters, &c., received and sent, is enormous. For the post-office department alone, it is said to reach near $40,000 for the month just past.”—Washington Union, Aug. 2.“We observe in the Eastern papers some paragraphs about the working of the new law, in which they suppose it will work well. Unquestionably it will work well for those who have to pay the postage; but as to therevenue, it will not yield even as much as the opponents of the system supposed. We do not believe the receipts will equal one half received under the old system. We are told that the experience of the first week in Cincinnati does not show more thanone quarterthe receipts.“Private correspondence is increased a little; but the falling off in the mercantile increase is immense. It cannot be otherwise; for many letters now pay 10 cents which formerly paid a dollar. Double and treble letters pay no more than single letters. In large cities three-fourths of the postage is paid bybusiness letters. These[pg 017]letters are nearly all double and treble. A double letter from Cincinnati to New York, Philadelphia, Boston, Baltimore, or New Orleans, before, paid 50 cents; now it pays 10 cents. The largest portion of postage is reduced toone-fifthpart of the former postage.“We are well pleased, however, that it will turn out as it will. The law will be too popular with the people to be repealed; and it will oblige Mr. James K. Polk's administration to provide ways and means out of the tariff to meet a deficiency of two millions in the postage. This will work favorably to the tariff.“All things will come right in the end. The lower the postage the more economical the post-office department must be, and the more money the government must raise from the tariff.”—Cleveland Herald.“Mr. McDuffie is reported to have made the following correct and just remarks, showing he understands well the operations of that Department. If the bill shall become a law, our word for it, that in less than six months one-fourth the offices in the Union will be discontinued, because nobody will be found who will keep them. But let the bill go into operation, and in less than twelve months the very clamorers for low rates of postage will become so sick of it, that they will be the first to unite in demanding its repeal. If we supposed our advice would have any influence, we would recommend to the Department and all Postmasters to hold on to the old books, arrangements and fixtures, even if the bill does pass, because in two weeks after Congress shall meet next year, it will be repealed and the old order restored.”—Kentucky Yeoman.“‘Mr. McDuffie rose, evidently much excited, and after expressing his regret that bodily infirmity disabled him to give the strength of his convictions in regard to the evils which would flow from the bill, he protested against its passage, as a measure more radical and revolutionary than anything that had ever been done by Congress. He denounced it as most unjust. It removes the burden from those who ought to have it, the manufacturers and merchants of the North, and throws it upon the farmers of the South and West, who are already oppressed by the tariff, and who will have to pay the expense by a tax on their necessaries.“‘You will sacrifice the intelligence of the people to the rapacity of the manufacturers. He could not imagine that the agriculturist anywhere could feel postage as a burden; it is but a moderate compensation for services rendered by the government. A poor man pays $10 duty on his sugar, salt and iron, and now you make him pay the postage. You will break up one half of the smaller offices, you will in ten years make the post-office the greatest organ of corruption the country has ever seen, and the man who wields its patronage can command the sceptre. By throwing it on the treasury, you destroy the responsibility of the head of the department, and in ten years you will have it cost you ten millions of dollars.’”Instead of a revenue of nearly four millions, it is therefore probable that the revenue of the first year of the experiment will not much exceed a million and a half. It will be remembered that Congress appropriated $750,000 to make up the expected deficiency; but this will fall far below the necessities of the service; and it is very probable that this sum will be consumed in the payments of the contracts for the two first quarters. They are very busy at the Department sending off letter balances, the postage of which will of course constitute a charge on the Treasury; and as the postage on each of these packets will amount to about three times as much as the first cost of the balances, the Department will make money out of this transaction.—Charleston Mercury.“I voted against this act. It is probable that a reduction might have been made in the rates of postage which would not have diminished the amount of revenue; but the reduction made by this act is too great, and will have the effect of throwing the Post-Office Department as a heavy charge on the general treasury, which has not been the case heretofore. The post-office tax was the only one in which the North and the East bore their share equally with the South and the West. We would all like to have cheap postage; and if that were the only consideration involved, I would have voted for the act; but there were others which influenced me to oppose it. The reduction of postage will cause a diminution in the post-office revenue, which must be supplied by thegeneral treasury. The treasury collects the revenue which must supply this deficiency, by a duty levied on imports; so that the tax taken off of themail correspondencewill have to be collected onsalt,iron,sugar,blankets, and other articles which we buy from the stores. The manufacturing States profit by this, because it aids theprotectivepolicy. I might add other objections, but deem it unnecessary at present.”—Letter of Hon. D. S. Reid, of ——, to his constituents.[pg 018]The Postmaster-General, in his report made Dec. 1, 1845, says:“So far as calculations can be relied on, from the returns to the department, of the operation of the new postage law, for the quarter ending 30th September last, the deficiency for the current year will exceed a million and a quarter of dollars; and there is no reasonable ground to believe that, without some amendment of that law, it will fall short of a million of dollars for the next year.”The actual deficiency for the year ending June 30, 1846, was only $589,837; and for the second year above alluded to, ending June 30, 1847, it was but $33,677. And the Postmaster-General's report for December, 1847, estimates the resources of the department for the year ending June 30, 1848, at $4,313,157, and the expenditures at $4,099,206, giving an actual surplus of $213,951. If this expectation should be realized, (and there is hardly a possibility but that it should be exceeded), the income will exceed the annual average receipts for the nine years before the reduction of postage, $51,467. The Postmaster-General ascribes the increase solely to“the reduction in the rates of postage,”while nearly a million of dollars are saved in the expenditures by the provision of the law of 1845, directing the contracts to be let to the lowest bidder, without reference to the transportation in coaches. So far, therefore, the triumph of the law of 1845 has been complete. It has proved that the same economic law exists here as in England, by which reduction of price leads to increase of consumption.On the other point, however, of meeting the wants of the people, so as to bring all the correspondence of the country into the mails, its success is very far from being equally satisfactory. The five and ten cents' postage does not have the effect of suppressing the private mails and illicit transportation of letters.The report of the House Committee in 1844, showed beforehand that such a reduction could not have the effect here, just as the parliamentary report had shown in 1838, that nothing but an absolute reduction to 1d.could suppress the private mails in England.“Individuals can prosecute on all the large railroad and steamboat routes between the great towns, as now, a profitable business in conveying letters at three and five cents, where the government would ask the five and ten cents postages.”Hill's New Hampshire Patriot said, shortly after the act went into operation:“Private expresseshave notbeen discontinued in this quarter. Far from it. They are now doing as large a business as ever, carrying letters at half the government rates. And, strange as it may appear, they appear to be sustained by public opinion. The new postage act did not abate what is called‘private enterprise,’and the act itself, it is thought, will soon be found to be insufficient.”The report of the Postmaster-General in 1845, speaks of a practice of enveloping many letters, written on very thin paper, in one enclosure, paying postage by the half-ounce, and thus reducing the postage on each to a trifle.“An incident recently occurred which will forcibly illustrate the injurious effects of such a practice upon the revenues of the department. A large bundle of letters was enveloped and sealed, marked‘postage paid, $1.60.’By some accident in the transportation, the envelope was so much injured as to enable the postmaster to see[pg 019]that it contained one hundred letters to different individuals, evidently designed for distribution by the person to whom directed, and should have been charged ten dollars. The continuance of this practice would, in a short time, deprive the department of a large proportion of its legitimate income. The department has no power to suppress it, further than to direct the postages to be properly charged, whenever such practices are detected. This has also introduced a species of thin, light paper, by which five or six letters may be placed under one cover, and still be under the half-ounce.”He adds:“The practice of sending packages of letters through the mails to agents, for distribution, has not entirely superseded the transmission of letters, over post roads, out of the mails, by the expresses. The character of this offence is such as to render detection very uncertain, full proof almost impossible, conviction rare. The penalties are seldom recovered after conviction, and the department rarely secures enough to meet the expenses of prosecution. If the officers of the department were authorized in proper cases to have the persons engaged in these violations of the law arrested, their packages, trunks, or boxes, seized and examined before a proper judicial officer, and, when detected in violating the law, retained for the examination of the court and jury, it is believed that the practice could be at once suppressed.”In his last report, December, 1847, he also says that,“Private expresses still continue to be run between the principal cities, and seriously affect the revenues of the department, from the want of adequate powers for their suppression.”The complaint is continually, of a want of adequate powers to suppress the practice. The law of 1845 has gone as far as could be desired in the severity of penalties and the extent of their application, involving in heavy fines every person who shall send or receive letters; and every stage-coach, railroad car, steamboat, or other vehicle or vessel—its owners, conductors and agents, which may knowingly be employed in the conveyance of letters, or in the conveyance of any person employed in such conveyance, under penalty of $50 for each letter transported. What the post-office department would deem“adequate powers”for the suppression of illicit letter-carrying, may be seen in the following extract of a bill, which was actually reported by the post-office committee of the House of Representatives, and“printed by order of the House:”
An individual, whose name and residence are, for obvious reasons, suppressed, gave the committee a full description of these private posts. He said that, in the year 1836, he kept an account of his letters; that the number sent by the post-office was 2068, and those sent by other means were 5861. Of these, about 5000 were to places within twenty miles, all of which were sent for 1d. each. Some carriers made it their sole business to carry letters. Some of them travelled on foot; others went by the stage coach to the place, and then distributed their letters. He found the practice prevailing when he began his apprenticeship in 1807. The population of the district thus accommodated was from 300,000 to 500,000. The practice was notorious, and used by all persons engaged in business. The object of a great deal of the correspondence was to convey orders, notes of inquiry, and other information to and from the small manufacturers, to whom it would be a tax of twenty-five per cent. on their earnings, if the letters were sent through the post-office at 4d. The letters were commonly wrapped up in brown paper, or tied with a string, some directed and some not. Very few persons thought about the practice being illegal. He had never heard of an attempt by the post-office to institute legal proceedings. It would absorb the whole revenue of the post-office to carry on the prosecutions that would be required to stop it, and without any effect, as most of the carriers were worth nothing. To suppress it by law, would be very injurious to the trade of the place. The only way to supersede it is to reduce the postage to 1d. Were this done, the post-office would be preferred, for its greater certainty, even though the carriers would go for a halfpenny. The post-office would unquestionably receive more money by the change.
“E. F.”, a manufacturer, described what he called thefree-packetsystem. Those manufacturers who did much business with London, in forwarding parcels through the stage coaches, were allowed by the coach proprietors to send a“free-packet,”without any charge, except 4d. for booking; and this package contained not only the letters and patterns of the house itself, but of others, who thus evade the postage.
“G. H.”had been a carrier, from a town in Scotland to other towns. There were six carriers, and they all carried letters, generally averaging fifty a day, and realizing from 6s. to 7s. per day, although there were four mails a-day running from the town. The business was kept in a manner secret. Reducing the postage to 2d. would not stop the practice, because the carriers would still take the letters for 1d.; but a penny postage would bring all the letters into the post-office, and then the post-office would beat the smuggler.
Mr. John Reid, of London, formerly an extensive bookseller in Glasgow said his house used to send out twenty to twenty-five letters a day, and scarcely ever through the post. Of 20,000 times of infringing the post-office laws, he was never caught but once, and then the government failed in proof, and he had the matter exposed as a grievance in the house of commons. He had seen a carrier in Glasgow have more than 300 letters at a time, which he delivered for 1d. Nearly all the correspondence between Glasgow and Paisley, was by carriers. There were 200 carriers came to Glasgow daily. There was as regular a system of exchanging bags, as in the post-office. There was not much attempt at concealment; sometimes we got frightened, and sometimes we laughed at the postmasters. Of his own letters, about one in twenty of those sent, and one in twelve of those received, passed through the post-office. The only way to put an end to the smuggling of letters was to remove the inducement. He said he could send letters to every town in Scotland. He could do it in more ways than one. He declined to state in what ways he would do it, because the disclosure would knock up some convenient modes he had of ending his own letters, and those of others. He said he would never use the post-office in an illegal manner, as by writing on newspapers and the like, because that would be dishonestly availing himself of the post-office, without[pg 013]paying for it. But he consideredhe had a right to send his letters as he pleased. He did not feel it his duty to acquiesce in a bad law, but thought every good man should set himself against a bad law, in order to get it repealed. Some of the methods of evading postage, practised in Scotland, are amusing. One was through what he called“family boxes.”When a student from the country comes to Glasgow to attend the college, he usually receives a box, once or twice a week, from his family, who send him cheese, meal, butter, cakes, &c., which come cheaper from the farm-house than he can purchase them in town. Probably, also, his clean linen comes in this way. The moment it was known that any family had a son at the university, the neighbors made a post-office of that farm-house.
The committee, in their report, concur in the opinion expressed by almost all the officers of the department, that it was not by stronger powers to be conferred by the legislature, nor by rigor in the exercise of those powers, that illicit conveyance could be suppressed. The post-office must be enabledto recommend itself to the public mind. It must secure to itself a virtual monopoly, by the greater security, expedition, punctuality,and cheapness, with which it does its work, than can be reached by any private enterprise.
With this nearly all the witnesses also agree, although some of them thought it possible that a less extreme reduction of the rate of postage might have kept out the private mails, if it had taken place earlier, before these illicit enterprises had obtained so firm a footing.
Lord Ashburton, who was examined before the committee, said that had a uniform rate of 2d., or even 3d. been adopted heretofore, most persons would sooner pay it than look out for the means of evading it.
Mr. Cobden, of Manchester, said a 6d. rate between Manchester and London would increase but slightly the number of letters, since the sending of letters clandestinely has become a trade, which would not be easily broken down. The railroads which are now opening to all parts of the country will so increase the facilities for smuggling, asto counteract any reductionof from twenty to fifty per cent. on the postage. No small reduction will induce the people to write more. A reduction to one half of the present rates would certainly be a relief to his trade, as far as it went, that is, to all such as now pay the full rate; but he thinks it would not induce the poorer classes to use the post-office. It would occasion a loss to the revenue of fifty per cent.
Mr. W. Brown, merchant of Liverpool, was sure a reduction to half the present rates would give satisfaction to the public, but would not meet the question, and would not prevent smuggling.
I. J. Brewin, of Cirencester, one of the Society of Friends, considered the effect of a two penny rate would be, that the post-office would get the long jobs, but not the short ones.
Lieutenant F. W. Ellis, auditor of district unions in Suffolk, under the poor law commissioners, said that 2d. would not have the effect of 1d. in bringing correspondence to the post-office, because by carriers, and in other ways, letters are now conveyed for 1d.
The evidence seems to have produced a universal and settled conviction, that as far as the contraband conveyance of letters was an evil, either financial or social, there was no remedy for it but an absolute reduction of the postage to 1d. There were large portions of the country in which the government could control the postage at a higher rate, 2d. or even 3d.; but in the densely populated districts, where the greatest amount of correspondence arises, and where are also the greatest facilities for evading postage, no rate higher than 1d. would secure the whole correspondence to the mails. They therefore[pg 014]left the penal enactments just as they were, because they might be of some convenience in some cases. Mr. Hill declared his opinion that it would be perfectly safe to throw the business open to competition, for that the command of capital, and other advantages enjoyed by the post-office, would enable it to carry letters more cheaply and punctuallythan can be doneby private individuals. And the result shows that he was right; for the contraband carriage of letters is put down. The Companion to the British Almanac, for 1842, says,“The illicit transmission of letters, and the evasions practised under the old system to avoid postage,have entirely ceased.”
All this experience, and all these sound conclusions, are doubtless applicable in the United States, with the additional considerations, of the great extent of country, the limited powers of the government, the entire absence of an organized police, and the fact that the federal government is to so great a degree regarded as a stranger in the States. Shall a surveillance, which the British government has abandoned as impracticable, be seriously undertaken at this day by the congress of the United States?
III.The Postage Law of 1845.
The Postage Act, passed March 3, 1845, which went into operation on the 1st of July of that year, was called forth by a determination to destroy the private mails; and this object gave character to the act as a whole. The reports of the postmaster-general, and of the post-office committees in both houses of congress, show that the end which was specially aimed at was to overthrow these mails. The Report of the House Committee, presented May 15, 1844, says:
“Events are in progress of fatal tendency to the post-office department, and its decay has commenced. Unless arrested by vigorous legislation, it must soon cease to exist as a self-sustaining institution, and either be cast on the treasury for support, or suffered to decline from year to year, till the system has become impotent and useless. The last annual report of the postmaster-general shows that, notwithstanding the heavy retrenchments he had made, the expenditures of the department for the year ending June 30, 1843, exceeded its income by the sum of $78,788. The decline of its revenue during that year was $250,321; and the investigations made into the operations of the current year, indicate a further and an increasing decline, at the rate of about $300,000 a year.”
“This illicit business has been some time struggling through its incipient stages; for it was not until the year commencing the 1st July, 1840, that it appears to have made a serious impression upon the revenues of the department. It has now assumed a bold and determined front, and dropped its disguises; opened offices for the reception of letters, and advertised the terms on which they will be despatched out of the mail.”
“The revenue for the year ending June 30, 1840, was $4,539,265; for the last year it was $4,295,925; and indications show that for the present year it will not be more than $3,995,925.”
“The number of chargeable letters in circulation, exclusive of dead letters, during the year ending June 30, 1840, may be assumed at 27,535,554. The annual number now reported to be in circulation, is 24,267,552. Thus, 3,268,000 letters a year and $543,340 of annual revenue, are the spoils taken from the mails by cupidity.”
The Report of the Senate Committee has this remark:
“We have seen in the outset that somethingmustbe done; that the revenues of the department are rapidly falling off, and a remedy must in some way be found for this alarming evil, or the very consequences so much dreaded by some from the reduction proposed, will inevitably ensue; namely, a great curtailment of the service, or a heavy charge upon the national treasury for its necessary expenses. It is believed that in consequence of the disfavor with which the present rates and other regulations of this department are viewed, and the open violations of the laws before adverted to, that not more than, if as much as one half the correspondence of the country passes through the mails; the greater part being carried by private hands, or forwarded by means of the recently established private expresses, who perform the same service, at much less cost to the writers and recipients of letters than the national post-office. It seems to the committee to be impossible to believe that there are but twenty-four or twenty-seven millions of letters per year, forwarded to distant friends and correspondents in the United States, by a population of twenty millions of souls; whilst, at the same time, there aretwo hundred and four millionsand upwards of letters passing annually through the mails of Great Britain and Ireland, with a population of only about twenty-seven millions.”
The Senate Report recommended the reduction of the rates of postage to five and ten cents, an average of seven and a half cents, with a very great restriction of the franking privilege, on which it was confidently estimated that the revenues of the department, for the first year of the new system, would be $4,890,500; and that the number of chargeable letters would be sixty millions. The House Report recommended stringent measures to suppress the private mails, with the abolition of franking, without any reduction of postage, except to substitute federal coin for Spanish. It estimated the increase of letters to be produced by reducing the rates to five and ten cents, at only thirty per cent. in number, thus reducing the postage receipts at once to two and a half millions of dollars. It will be seen that each of these calculations has been proved to be erroneous.
The great postage meeting in New York, held in December, 1843, had asked for a uniform rate of five cents. After stating the advantages of the English system, their committee still hung upon the length of the routes in this country as a reason against the adoption of the low rate of postage. They said,
“It is plain that a similar system may be introduced with equally satisfactory results in the United States. On account, however, of the vast distances to be traversed by the mail-carriers, and the great difficulties of travel in the unsettled portions of our country, our petition asks that the rate be reduced to five cents for each letter not more than half an ounce in weight—which is more than double the uniform postage in Great Britain. It is a rate which would not only secure to the post-office the transport of nearly all the letters which are now forwarded through private channels, but it would largely increase correspondence, both of business and affection.
“Above all, thefranking privilegeshould be abolished. Unless this is done, nothing can be done. It will be impossible, without drawing largely upon the legitimate sources of the national revenue, to sustain the post-office by any rates whatsoever, if this franking privilege shall continue to load the mails with private letters which everybody writes, and public documents which nobody reads.”
The bill was passed, but the franking privilege was continued, and yet the Postmaster-General has told us that the current income of the department is equal to its expenses. The predictions to the contrary were very confident. Some of the gloomy forebodings then uttered, are worthy of being recalled at this time.
“The post-office department estimates that the deficiency in the revenue of the department, under the new law, will be about $1,500,000, this year.”—Boston Post.
“An additional tax of $1,500,000, to be raised to meet the deficiencies of the department, in a single year, must principally come from the pockets of farmers, (who write few letters, and are consequently less benefited by the reduction of postage,) in the shape of additional tariff duties upon articles which they consume.”—New Hampshire Patriot.
“A Caution.—Some people may be deceived on the subject of cheap postage, unless they take a‘sober second thought.’A part of those who are so strenuous for cheap postage are not quite so disinterested as would at first appear. They are seeking to pay their postage bills out of other people's pockets. Look at this matter. I am an industrious mechanic, for example, and I have little time to write letters. My neighbor publishes school-books, and he wishes to be sending off letters, recommendations, puffs, &c., by the hundred and by the thousand. This is his way of making money. Now, he wishes the expenses of the post-office department to be paid out of the treasury, and then I shall have to help him pay his postage, while he will only pay his national tax, according to his means, as I do mine. If he is making his money by sending letters, he should pay the whole cost of carrying those letters. I ought not to pay any part of it, in the way of duties on sugar, &c. Let every man pay his own postage. Is not this fair? But this will not be the case if the post-office department does not support itself. The cheap postage system may injure the poor man, instead of helping him.”—Philad. North American.
“As for the matter of post-office reform, and reduction of the rates of postage, there are notone thousandconsiderate and reflecting people, in the Union, who desire or demand anything of the kind.
“The commercial and mercantile classes have not desired‘reform;’and the rural and agricultural classes, the planters of the South, and the corn and wheat growers of the West, the mechanics and laboring classes, are not disposed to betaxedenormously to support a post-office department to gratify the avarice and cupidity of a body of sharpers and speculators.”—Madisonian.
“The New Postage Law.—The following statement has been furnished us of the amount of postage chargeable on letters forwarded by the New York and Albany steamboats:
The last thirteen days of June, $99.66First thirteen days of July, (same route,) 53.90Decrease, $45.76.
Albany Argus.
“I inquired at the post-office to-day for information. One of the gentlemanly clerks of that establishment said to me,‘Well, Mr. Smith, I can't give you all the information you desire, but I can say thus much. I this morning made up a mail for Hudson; it amounted toseventy cents; the same letters under the old law, and in the same mail, would have paidseven dollars. Now you can make your own deductions.’I then inquired of the same gentleman, if the increase of letters had been kept up since the 1st of July. He replied‘no,’but added,‘the increase of numbers is somewhat encouraging, but not sufficiently so to justify the belief that the new law will realize the hopes of its advocates.’”—N. Y. Correspondent of Boston Post.
“From the city post-office we learn that the number of letters, papers, and packages, passing through their hands, unconnected with the business of the government, has increased about 33 per cent., when compared with the business of the month of June. The gross amount of proceeds from postage on these has fallen off nearly 66 per cent., while the postage charged to the government for its letters, &c., received and sent, is enormous. For the post-office department alone, it is said to reach near $40,000 for the month just past.”—Washington Union, Aug. 2.
“We observe in the Eastern papers some paragraphs about the working of the new law, in which they suppose it will work well. Unquestionably it will work well for those who have to pay the postage; but as to therevenue, it will not yield even as much as the opponents of the system supposed. We do not believe the receipts will equal one half received under the old system. We are told that the experience of the first week in Cincinnati does not show more thanone quarterthe receipts.
“Private correspondence is increased a little; but the falling off in the mercantile increase is immense. It cannot be otherwise; for many letters now pay 10 cents which formerly paid a dollar. Double and treble letters pay no more than single letters. In large cities three-fourths of the postage is paid bybusiness letters. These[pg 017]letters are nearly all double and treble. A double letter from Cincinnati to New York, Philadelphia, Boston, Baltimore, or New Orleans, before, paid 50 cents; now it pays 10 cents. The largest portion of postage is reduced toone-fifthpart of the former postage.
“We are well pleased, however, that it will turn out as it will. The law will be too popular with the people to be repealed; and it will oblige Mr. James K. Polk's administration to provide ways and means out of the tariff to meet a deficiency of two millions in the postage. This will work favorably to the tariff.
“All things will come right in the end. The lower the postage the more economical the post-office department must be, and the more money the government must raise from the tariff.”—Cleveland Herald.
“Mr. McDuffie is reported to have made the following correct and just remarks, showing he understands well the operations of that Department. If the bill shall become a law, our word for it, that in less than six months one-fourth the offices in the Union will be discontinued, because nobody will be found who will keep them. But let the bill go into operation, and in less than twelve months the very clamorers for low rates of postage will become so sick of it, that they will be the first to unite in demanding its repeal. If we supposed our advice would have any influence, we would recommend to the Department and all Postmasters to hold on to the old books, arrangements and fixtures, even if the bill does pass, because in two weeks after Congress shall meet next year, it will be repealed and the old order restored.”—Kentucky Yeoman.
“‘Mr. McDuffie rose, evidently much excited, and after expressing his regret that bodily infirmity disabled him to give the strength of his convictions in regard to the evils which would flow from the bill, he protested against its passage, as a measure more radical and revolutionary than anything that had ever been done by Congress. He denounced it as most unjust. It removes the burden from those who ought to have it, the manufacturers and merchants of the North, and throws it upon the farmers of the South and West, who are already oppressed by the tariff, and who will have to pay the expense by a tax on their necessaries.
“‘You will sacrifice the intelligence of the people to the rapacity of the manufacturers. He could not imagine that the agriculturist anywhere could feel postage as a burden; it is but a moderate compensation for services rendered by the government. A poor man pays $10 duty on his sugar, salt and iron, and now you make him pay the postage. You will break up one half of the smaller offices, you will in ten years make the post-office the greatest organ of corruption the country has ever seen, and the man who wields its patronage can command the sceptre. By throwing it on the treasury, you destroy the responsibility of the head of the department, and in ten years you will have it cost you ten millions of dollars.’”
Instead of a revenue of nearly four millions, it is therefore probable that the revenue of the first year of the experiment will not much exceed a million and a half. It will be remembered that Congress appropriated $750,000 to make up the expected deficiency; but this will fall far below the necessities of the service; and it is very probable that this sum will be consumed in the payments of the contracts for the two first quarters. They are very busy at the Department sending off letter balances, the postage of which will of course constitute a charge on the Treasury; and as the postage on each of these packets will amount to about three times as much as the first cost of the balances, the Department will make money out of this transaction.—Charleston Mercury.
“I voted against this act. It is probable that a reduction might have been made in the rates of postage which would not have diminished the amount of revenue; but the reduction made by this act is too great, and will have the effect of throwing the Post-Office Department as a heavy charge on the general treasury, which has not been the case heretofore. The post-office tax was the only one in which the North and the East bore their share equally with the South and the West. We would all like to have cheap postage; and if that were the only consideration involved, I would have voted for the act; but there were others which influenced me to oppose it. The reduction of postage will cause a diminution in the post-office revenue, which must be supplied by thegeneral treasury. The treasury collects the revenue which must supply this deficiency, by a duty levied on imports; so that the tax taken off of themail correspondencewill have to be collected onsalt,iron,sugar,blankets, and other articles which we buy from the stores. The manufacturing States profit by this, because it aids theprotectivepolicy. I might add other objections, but deem it unnecessary at present.”—Letter of Hon. D. S. Reid, of ——, to his constituents.
The Postmaster-General, in his report made Dec. 1, 1845, says:
“So far as calculations can be relied on, from the returns to the department, of the operation of the new postage law, for the quarter ending 30th September last, the deficiency for the current year will exceed a million and a quarter of dollars; and there is no reasonable ground to believe that, without some amendment of that law, it will fall short of a million of dollars for the next year.”
The actual deficiency for the year ending June 30, 1846, was only $589,837; and for the second year above alluded to, ending June 30, 1847, it was but $33,677. And the Postmaster-General's report for December, 1847, estimates the resources of the department for the year ending June 30, 1848, at $4,313,157, and the expenditures at $4,099,206, giving an actual surplus of $213,951. If this expectation should be realized, (and there is hardly a possibility but that it should be exceeded), the income will exceed the annual average receipts for the nine years before the reduction of postage, $51,467. The Postmaster-General ascribes the increase solely to“the reduction in the rates of postage,”while nearly a million of dollars are saved in the expenditures by the provision of the law of 1845, directing the contracts to be let to the lowest bidder, without reference to the transportation in coaches. So far, therefore, the triumph of the law of 1845 has been complete. It has proved that the same economic law exists here as in England, by which reduction of price leads to increase of consumption.
On the other point, however, of meeting the wants of the people, so as to bring all the correspondence of the country into the mails, its success is very far from being equally satisfactory. The five and ten cents' postage does not have the effect of suppressing the private mails and illicit transportation of letters.
The report of the House Committee in 1844, showed beforehand that such a reduction could not have the effect here, just as the parliamentary report had shown in 1838, that nothing but an absolute reduction to 1d.could suppress the private mails in England.“Individuals can prosecute on all the large railroad and steamboat routes between the great towns, as now, a profitable business in conveying letters at three and five cents, where the government would ask the five and ten cents postages.”Hill's New Hampshire Patriot said, shortly after the act went into operation:
“Private expresseshave notbeen discontinued in this quarter. Far from it. They are now doing as large a business as ever, carrying letters at half the government rates. And, strange as it may appear, they appear to be sustained by public opinion. The new postage act did not abate what is called‘private enterprise,’and the act itself, it is thought, will soon be found to be insufficient.”
The report of the Postmaster-General in 1845, speaks of a practice of enveloping many letters, written on very thin paper, in one enclosure, paying postage by the half-ounce, and thus reducing the postage on each to a trifle.
“An incident recently occurred which will forcibly illustrate the injurious effects of such a practice upon the revenues of the department. A large bundle of letters was enveloped and sealed, marked‘postage paid, $1.60.’By some accident in the transportation, the envelope was so much injured as to enable the postmaster to see[pg 019]that it contained one hundred letters to different individuals, evidently designed for distribution by the person to whom directed, and should have been charged ten dollars. The continuance of this practice would, in a short time, deprive the department of a large proportion of its legitimate income. The department has no power to suppress it, further than to direct the postages to be properly charged, whenever such practices are detected. This has also introduced a species of thin, light paper, by which five or six letters may be placed under one cover, and still be under the half-ounce.”
He adds:
“The practice of sending packages of letters through the mails to agents, for distribution, has not entirely superseded the transmission of letters, over post roads, out of the mails, by the expresses. The character of this offence is such as to render detection very uncertain, full proof almost impossible, conviction rare. The penalties are seldom recovered after conviction, and the department rarely secures enough to meet the expenses of prosecution. If the officers of the department were authorized in proper cases to have the persons engaged in these violations of the law arrested, their packages, trunks, or boxes, seized and examined before a proper judicial officer, and, when detected in violating the law, retained for the examination of the court and jury, it is believed that the practice could be at once suppressed.”
In his last report, December, 1847, he also says that,“Private expresses still continue to be run between the principal cities, and seriously affect the revenues of the department, from the want of adequate powers for their suppression.”The complaint is continually, of a want of adequate powers to suppress the practice. The law of 1845 has gone as far as could be desired in the severity of penalties and the extent of their application, involving in heavy fines every person who shall send or receive letters; and every stage-coach, railroad car, steamboat, or other vehicle or vessel—its owners, conductors and agents, which may knowingly be employed in the conveyance of letters, or in the conveyance of any person employed in such conveyance, under penalty of $50 for each letter transported. What the post-office department would deem“adequate powers”for the suppression of illicit letter-carrying, may be seen in the following extract of a bill, which was actually reported by the post-office committee of the House of Representatives, and“printed by order of the House:”