Evening star., 1934-01-08
POSTAL RECEIPTS
MAY EQUAL COSTS
Farley Says 3.Cent Rate
Must Continue Unless
Deficit Increases.

Postal business probably has seen It's
best days. as the result of changed
methods of advertising and merchan-
jising
This note is sounded today by Post
master General Farley in his annual
report, which shows that for the first
time since 1919. and despite declining
revenues. the end of the current fiscal
year is expected to see actual postal
expenditures equaled by receipts.
A balanced budget has been the aim
of the postal administration since as
suming Office in March, but the Post
master General emphasizes that 1t has
only been made possible by reason of
the Scent rate and economies
effected principally through various
personnel retrenchment. II like
showing is to be made for the fiscal
year starting July l next, the same
policies, it is amplified, must De con-
tinued
The report brings out that the effort
to stimulate business by dropping the
local mail rate back to cents has
this year. when the estimated total
will be S570000,000, as compared to
S587 600 900 in 1888, is traceable largely
partment is making an effort 20 cope
with this situation now by denying the
use of private mail boxes to these con-
Germs which make practice of personal
delivery of bills and other matter. which
otherwise would go through the mail.
Deficits Reduced
The department ended the fiscal
year 1888 with gross deficit OF
SIP. 2.374892 LOS, and a net-which eX-
cluded the ship and air subsidies, and
credit for free mail--of $50, ,683. sos .46
This compared to gross of s205 ,550,-
Gil 90 and net of Sl52,246.l88 IN 1882
For 1884 the anticipated gross ex-
penditures are S629.000,000, leaving a
deficit of s5900O0oO from anticipated
revenues. When the non- postal items,
including s4l,750,0O0 for subsidies, are
offset here, the budget is brought into
line.
In his summation the Postmaster
General, pointing out receipts are down
for the third successive year. says:
The records of the department
changed methods of advertising and
merchandising. the period Of constantly
increasing postal receipts was approach
ing an end even before the depression
began. The Post Office Department is
now confronted with the problem Of
maintaining its revenues at the highest
possible level so that it may continue to
provide the service which the public
properly expects of it.
During the fiscal year 1888 the first
attack upon the deficit was made. not
only by the increase Of certain postal
rates, but also by sharp reduction Of
expenditures. Substantial reductions
were made in the outlay for transpor-
tation. rent. and supplies and equip
ment. as we'll as for other miscellaneous
items. The principal savings were
made, however. in the expenditures for
personal services.
Vacancies Untitled.
Although the department has avoid
ed discharging any employees on account
Of the shrinkage in post Office business,
the decline of volume has made it un-
necessary to flll vacancies OF approx
mately S80,000,000 saved during the
year in the Post Office pay roll more
than S58000,000 is attributable to re-
ductions resulting from various provi-
sions of economy legislation and ap-
proximately S22000000 to normal re-
ductions in personnel, through deaths,
retirements and designations"
Taking up rates and revenues, he
ADDS: The department believes that
as business conditions improve it can
look forward to gradual increase in
the volume of the mails. Should pres
ent rates of postage be continued
during the fiscal year 1885, the revenues
for that year can be conservatively es-
timated at $685., 900 900. an increase of
Sl5,000,000 over the anticipated re-
ceipts for the current fiscal year.
1T is to be noted, however. that in
the absence Of further legislation. the
letter postage rate will automatically
be restored to cents on July ! next
Should this occur. the revenues for
1885 can scarcely be expected to eX-
be a substantial improvement In busi-
ness. 1t is to be remembered also that
the reduction in postal expenditures
to the figure Of s629,000,000 now esti-
mated for 1884 has been made posi-
BILE largely by certain temporary pro-
visions of the economy legislation all
of which. urleSs re-enacted will cease
to Ue effective at the end of the current
fiscal year.
Deficit Forecast.
llle lapse OF IneSe PROVISIONS. EN-
bracing a percentage cut in compen-
sation rates and substantial reductions
in certain allowances will add s86,-
100000 to the departments annual
charges. or, in other words. will in
crease it's expenditures in 1885 from
approximately 1929 100000 to approx
mately 715,000,000 1t follows. oi
course, that in the absence Of further
legislation the department will be un-
able to escape a gross revenue deficiency
of almost Sl90,000,000 during the fiscal
year 1885"
AS to the Scent rate, which has some
vigorous opponents in Congress, and
continuation of which was recommend
ed by President Roosevelt in the budget
message, the report says:
The department estimates that, from
the data in its possession, had the
| 2-cent postage rate been continued the
receipts from flrSt-class mailings during
1888 would not have exceeded s257,
600 900 by comparison with the sum OF
| 1892 100000 which was actually COL
lected A revenue gain Of $75 900, 600 as
a result of the higher rate, after allow
| ing for all losses and diversions directly
attributable to the rate increase, Is con-
sidered a conservative estimate"