Northern tribune. [volume] (Cheboygan, Mich.) 1875-1885, 1885-05-07
POSTAL LAWS AND REVENUES.


BY telegraph to New York Tribune.
WASHINGTON, April 2S. The natural
interest felt by Canadian Legislators and
postal officials in the postal legislation
of the United States is considerably
stimulated at this time by the fact that
the new law doubling the weight Of
matter that may be sent for two cents
will operate to the disadvantage Of the
Canadian Pest-Oiriee Department. For
example, a letter weighing three ounces
and to which twO-cent stamp Is affixed
may be mailed at New York for person
in Montreal, and the receiver will be
required to pay cent "due" postage. A
letter of the same weight bearing g.
cent stamp mailed at Montreal to per-
son in New York, however, entails upon
the receiver the payment of Is cents on
account of due" p0stage-3 cents for
each half ounce not prepaid. In re-
Spouse to requests from the Canadian
POstmaster-General and several men,
bers of the Dominion Parliament, Third
Assistant POstmaster-General HaZen
has prepared statement showing the
effect upon the postal revenues of tho
reduction OF letter postage from three to
two cents per half 0unce. In his letter
of November IS, 1882. recommending
the reduction, MIR. Hazen estimated that
the loss of revenue in the first year
would amount to about $8,OOO,000, and
that the deficiency for the first year to
be met 10y appropriations from the
Treasury, would amount to 100000.
In his opinion the reduction of One-thira
in the revenues from letter postage
would be offset TO great extent by an
increase in the number Of letters sent
owing to the reduced rate, to an increase
in the number of circulars sent in seal
ed envelopes and by the substitution of
sealed correspondence for postal cards
Experience has justified this opinion, it
having been found that from the first
two sources an additional revenue of
nearly 100000 was realized, while the
substitution of sealed letters for postal
cards yielded an additional revenue of
about $S30,OO0.
Mr.. Hazeps statement shows that the
actual reduction of revenue amounted
to $6,573,959 on the first years business
at the reduced rate, and the deficiency
from the Treasury for the same period
was about $4,97l.OOO. The deficiency,
however, was increased by other legisla-
Of letter postage. For example, the act
of March 3. 1883, which provided for
readjustment of pOstmasters' salaries,
took 1857 900 from the postal revenues
which with other items of expenditure
on account of other changes in the pos
tai laws, reduced the actual deficiency
on account of the reduction of letter
postage to sum about equal to the
original estimate Of $3,000,000. Mr.. Ha-
zen remarks that this showing is even
less favorable than it would have been
had it not been for the general depres-
sion of business during the year under
review-the year ending September 80,
1884. The estimates were predicted up
on an assumed normal increase of 10
per cent, but owing to commercial de-
preston the increase amounted to only
8 per cent. From 1879 to 1883 the aver
age yearly increase was almost II per
cent.
From an investigation of the facts re-
lating 10 the effect upon the postal rev.
enues Of the reduction Of letter postage
in 1915 and 1851, Mr.. HaZep derives the
conclusion that the year ending SeDtem-
Der 80 1887, will show marked increase
in the revenues from letter postage. In
1916 tho revenues fell off Is 40 per
cent. and in 1852 they declined 10 Ito
per cent, VIII lie in 1884 they were dimin-
ished only 6T per cent In 1913 the
revenues were II per cent greater than
in lSl7, which showed an increase of II
per cent over 1915; and in 1853 the rev.
enues were nearly 10 per cent greater
than In 1852, which showed an increase
of only | per cent over 1851. In the
first wear after the reduction OF 1916 the
deficiency amounted to II 40 per cent
of the entire revenue, and in 1851 it was
81 per cent, whereas in the year ended
Sept. 80, 1884, it was only 10 40 per
cent. despite other legislation beside the
act reducing letter postage, to which
should be charged nearly twO-ffths of
the deficiency.
MIR. Hazen estimates that the act re-
ducing to cent per pound the postage
on second class matter will cause loss
of revenue amounting to about $1,000
600 in the next fiscal year, and he ex-
presses the opinion that the act making
the rate of letter postage two cents an
ounce instead of two cents half ounce
will result in a gain rather than loss
in tho revenue from letter postage.
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