The post office and its story an interesting account of the activities of a great government department

Then Sir Rowland claimed “the almost universal resort to prepayment of correspondence, and that by means of stamps,” the establishment of the book post, the reduction in the fee for registered letters from 1s. to 4d., a reduction in the price of money orders combined with a great extension and improvement of the system, a more frequent and more rapid communication between the Metropolis and the larger provincial towns, as also between one provincial town and another, a vast extension of the rural distribution, and many other facilities for the public, including the establishment of Post Office Savings Banks. He goes on to say: “The expectations I held out before the change were that eventually under the operation of my plans the number of letters would increase fivefold, the gross revenue would be the same as before, while the net revenue would sustain a loss of about £300,000. The actual figures show that the letters have increased not fivefold but nearly eight and a half fold, that the gross revenue, instead of remaining the same, has increased by about £1,500,000; while the net revenue, instead of falling £300,000, has risen more than £100,000.” This was written more than twenty years after the introduction of penny postage, but it must not be supposed that the reform was an immediate financial success. The last complete year (1839) of the old system of high rates yielded a profit of £1,659,000. The first complete year of the new system produced only £500,789. But in two years the number of chargeable letters passing through the post had increased from 72,000,000 per annum to 208,000,000, and in a few years the profit of 1839 had been passed.