PENNY POSTAGE.

Otago Daily Times, Issue 19505, 13 June 1925, Page 8

PENNY POSTAGE.

EFFECT OF THE CHANGE. (Fbom Oue Own Coheespondent.) WELLINGTON, Juno 12. Tire statement made by the Federal Postmaster-General (Air IV. G. Gibson) in the Commonwealth Parliament that the change from to Id postage in New Zealand has meant a loss at revenue amounting to £231,000, is a fair estimate considering that he probably based his figures on what was estimated would bo the drop before the reduction m postage rates was made. Penny postage was reverted to in New- Zealand in October, 1923, when it was estimated by the Postmaster-General that for the first full financial year this would mean a reduction in revenue, of approximately £250,000. Actually, after taking into consideration the natural increase in postal business and the further increase brought about by the reduction in rates because the lowering of charges stimulates business, the loss on the full year of penny postage has not amounted to miye than •£200,000. The exact figure, assuming it was possible to work it out to the last £l, would probably bo somewhere between £130,000 and £200,000. The exact result of the change cannot be accurately gauged because varying factors enter into the situation. When a country continues to make progress and the population grows, the volume of postal business expands in sympathy, and agfin the effect of easing the charges to the people is for them to respond and take increased advantage of the postal facilities. This is what has actually been the experience in New Zealand. The post a 1 business is buoyant as a consequence oi the rate reduction since the lowering of the rates. Tradespeople now frequently send out circulars and accounts in sealed envelopes at letter rates, namely, Id, instead of .posting unclosed envelopes for Id. Those who are unfortunate enough to he the more or less frequent recipients of bills do not like getting them in unsealed envelopes because there .is then no guarantee of the possible state of their exchequer being kept secret from the public :-ye.