POSTAL RATES

Evening Post, Volume CXI, Issue 74, 28 March 1931, Page 11

POSTAL RATES

CHANGES IN FORCE

PREVIOUS FLUCTUATIONS

EFFECT ON REVENUE

j Although just on a month has elapsed since the new postal rates came into force, it is impossible as yet to gauge the effect on the revenue of the Post and Telegraph Department. Inquiries as to the number of letters, parcels, cic, being handled compared with this lime Jast year or any other year elicit entirely non-committal replies, and, in order lo find out whether the Department is raking in the increased revenue expected, it is obviously necessary, to adopt that time-honoured bit of advice and "Wait and sec."

' In. the meantime, however, it is instructive to see what has happened on •previous occasions when postal rates , have been raised. From Ist August, 1920, when incroases in charges were aiado approximating to those now in force, there was at once a decline in the number of letters and other postal • missives. Tho numbers for letters and letter-cards posted in each year ending 31st March clearly show this:- — 1920 259,743,234 1921 253,707,131 1922 239,997,081 1923 ' 252,021,959 The number at letters posted, averaged per head of the population, dropped from 103.5S in 1920 to 95.35 in 1921, 89.0S in 1922, and 92.27 in 1923. There were also decreases in the posting of postcards and newspapers, and in the sending of telegrams. For tho year ending 31st March, 1922, tho revenue from postages was £1,410,----251, and from telograms £685,855. As the increased rates were only introduced in August, 1920, tho previous year's revenue forms no basis of comparison. But. for tho year ending 31st March, 1920, postages brought in £1,013,026 and telegrams £004,221. It should be noted that'for the second complete .year during which higher rates operated there was a decline m revenue. For the year ending 31st March, 1923, the revenue from postages was £1,289,496, approximately £120,----000 less than for the previous year. INCREASES IN 1920. ■ In August, 1920, tho minimum rates were raised as follows: — d. d. Letters l'>om li to 2, Postcards -. .. .. From 1 to 1* Newspapers .. .. From ito j Inland packets .. .. From ito 1-J Kegistored magazines From 1 to v Parcels From *i to " Other increases were, made too, and telephone rentals, etc., all cost more. In February, 1923, however, times were improving,' and certain rates and chargos were reduced: d. d. Letters From 3 to 1* Postcards From li to 1 Inland packets .. .. From .U to 1 Newspapers .. - • ■li'voni Ito ~ Inland telegrams (12 words) •• ■• >>0I» 12 to ■ 9 Further reductions, were made in October of the same year, the minimum letter rate coming down to Id and tbat for postcards to M., From 1 ebruary, 19"3 when some of tho charges wevs first reduced, there was at once an increase in tho per capita postage. _ At tho present time it is obvious that business firms and others are economising as far as possible in the matter of postage. A decline in tho number of postal packets is only tcj bo expected: time alono will tell whether the increased postal rates will brmg about the increase in revenue expected, despite the reduction in the number of postings. During 1929 a total of 309 162,103 letters and letter-cards ant 48,658,470 newspapers woro posted ana delivered, compared with 209,740,^4 and 37,859,247 in 1920.

near future of another new penny stamp to mark the return to penny postagethin time, a permanent return. It would certainly mean more postal business, and probably more postal revenue than that produced by the £M rate.