PENNY POSTAGE.

Hawera Star, Volume XLVIII, 3 January 1925, Page 15

PENNY POSTAGE.

HOPE OF ITS RESTORATION. LONDON, Nov. 18. Business men and the public generally are hoping that the new Government will see their way to restoring penny postage and penny cheques, and thereby take two very practical measures for the assistance of trade and employment. It is pointed out by industrial experts that a penny postage, even if it yielded smaller total earnings to the" Post Office (a contention that is not admitted), would greatly increase the number of letters in circulation. This, in turn, would lead to more business, and, therefore, to a bigger revenue for the Exchequer.. When the Association qf British Chambers of Commerce approached the Labour Chancellor of the Exchequer and the Postmaster-General th e association was told that the result of penny postage would mean a reduction in postal revenue of about £5,500,000 and an increase in postal packets carried annually of about 300,000,000. The representatives of the association said that even if a loss of £5,500,000 were entailed—and we say that there would be no such loss—this was an argument for the restoration of the facilities. It was maintained that 300,000,000 postal packets would mean immensely more than £5,500,000 to the. trade of the country, and whenever trade 'is increased so is revenue. With the cheque at 2d instead of Id much more money remains out of general circulation, and, therefore, trade suffers. The man with the moderate income wanting money for his pocket will draw £lO out of the bank instead of £5, and this amount goes in his wallet. It also discourages the cheque habit, a very excellent one as economists know.

In a very large number of instances people, to* avoid writing numerous cheques, draw out . considerable sums from the banks for email current accounts, and by paying in notes economise the extra' penny of tax. It is calculated that by reverting to the Id duty the Government would encourage the' rmblic to leave the money in the banks, and thus add £100,000,000, or even more, to the sum available for financing industry. “The telephones must not he forgotten,” said a high official of the Post Office. “During the week after the election there were 8,800,000 calls in Lopdon alone. What effect had that enormous number on the number of letters carried ? Then, again, the traffic conditions in London at present are not conducive to promptitude and punctuality, and people are relying more and more on the telephone. The problem has to be faced, but it is not quite so simple as it looks. The country cannot afford to regard with equanimity a probable large loss of revenue.”