keeping pace with the growth of the country. The great increase of the last year was unnatural, and owing to temporary causes of disturbance which have passed by. Some more safe basis of estimation must be found. To exhibit separately the increase in the revenue derived from letter postage and from printed matter, the following comparison is instituted between the past and the preceding year: Letter postage including stamps sold, Aggregate, Year ending June Year ending June 30, 1848. 767,335 $4,117,639 30, 1849. Rate of increase. $4,701,778 14 2-10 It will be observed that the letter postage increased in the past year 15 9-10 per cent., and that the aggregate increase is 14 1-5. The rate of increase upon letters being extraordinary, and much beyond the natural growth of our population and business, and being double that of the previous year, it cannot be expected to continue, especially as the causes to which it is mainly attributable have ceased to operate. These were the retaliatory postage act of the 27th June, 1848, which was superseded by the postal treaty with Great Britain in February, 1849, and the greater frequency of correspondence induced by the presidential canvass in the fall of 1848. In estimating the revenue for the current year, it will therefore be necessary to assume something like the natural increase of the revenue as the basis of the calculation. To ascertain as nearly as may be what is that natural rate of increase, I take the aggregate revenue from postages, year by year, since the reduction on the 1st July, 1845, and show what has been the annual rates of increase, thus: Year ending- Postages on letters, news- Amount of June 30, 1846, $3,443,840 The average of the years 1847 and 1848 appears to be 9 35-100 per cent., and of the three years ending 30th June, 1849, nearly eleven per cent.; but as it has been shown that there were temporary causes operating to increase unnaturally the postages of the year ending 30th June, 1849, it is deemned safest to take 9 per cent. as the rate, omitting the fraction, and the revenue of 1848 as the basis for estimating the revenue for the year ending 30th June, 1850, thus: Revenue from postages for year ending June 30, 1848 $4,117,639 00 370,587 00 Add nine per cent. Probable revenue for year ending June 30, 1850 To this add balance on hand June 30, 1849 Appropriation for free matter for departments for year ending June 30, 1850 Deduct expenditures before stated This amount will be subject to a still further reduction of about $175,000, payable to Great Britain for the balance of postage collected for the past and current year Leaving a balance on 30th of June, 1850, of RATE OF POSTAGE. 175,000 00 $858,710 57 It seems long to have been the received principle in this department that its expenses should be always kept within the income furnished by postage, and all exertions at the improvement and extension of the service are to be limited to and fall within such receipts. The opinion of the community without the department is believed to be, that the general post-office, being for the dissemination of intelligence and advancement of business, is not a proper subject of taxation that no burden for public service should lean upon it, and that the rate of postage should only be such as will pay the expense of the care, conveyance, and delivery of the matter on which the postage is laid. These views are in no way incompatible, and may both be successfully regarded, provided a reasonable compensation be made to the department for the service it performs by those for whose benefit such service is required. It must be quite obvious that there can be no practicable method of ascertaining the expense of mail service on each particular letter or paper, as it fluctuates with the cost in each different section of the country; but what is the proper proportion of each class of service may be settled with a good degree of justice, if when ascertained it is to bear its fair proportion, and that only. The classes of service now required are three: the care, transportation, and delivery—1st, of letters-2d, of newspapers and pamphlets-3d, matter carried without compensation. It is by postage on the two first classes of service that the whole expenses of the department are now sustained. The whole number of letters charged with postage passing through the mails the past year, reckoned on the postage received, agreeably to a basis heretofore approved, amounted to sixty-two millions. On all these letters the postage collected was $3,882,762; on newspapers and pamphlets, $819,016. It is well known that the postage on the newspapers and pamphlets, in proportion to their weight and numbers, is in a very great degree less than the letter postage; so that they do not pay their proportion of the expenses of the service. It, therefore, follows that the letter postage pays now, not only for its own cost, but also for what the paper postage falls short of its proportion, and also for all the other operations and services of the department, including the expense of all the matter carried for the public without pay from government. This brings us to inquire what is the extent of this class of service rendered without pay from the employers. First, what is the nature and amount of this franked matter? The heads of the different departments frank all the mail matter sent from their respective departments, and receive free all to them directed. Under the act of 1845, an account was kept by the post-office of the city of Washington, of all such matter received by the departments for the year ending June 30, 1846, but no account of the matter sent from them. The postage on that received, at the present rate, was $250,383 83, and the amount as then estimated at the treasury on the matter sent would be fully equal, so that the same then amounted to $500,767 66. (Ex. Doc. 64, 2d Ses. 29 Cong.) In 1847 this mode of payment was abolished, and the only provision since for this service rendered to the executive departments, is an appropriation of two hundred thousand dollars per annum. It is always to be recollected that no amount of appropriation, however large, to pay for franked matter, will ever in any degree relieve the letter or paper postage, so long as such postage actually pays the whole expense of the department, whereby such appropriation remains as surplus undrawn from the Trea sury. But the principal part of the franked matter, for which no payment is made to the department, consists in the letters, papers, and documents franked by the members of the senate and house of representatives. The amount of this matter cannot be ascertained with entire accuracy, as much is forwarded of which no account is kept. By a report from the clerk's office of the house of representatives, it appears that, during the two sessions of the 30th Congress, ending in March last, the extra number of public documents for distribution was 370,350, and their weight was 467,762 pounds. Printed speeches folded for members to frank, 6,584,500, which are estimated at one ounce each, 411,531 pounds; though one-half of this shows the annual amount of this matter from the house of representatives the two past years. This does not include the written correspondence of the members, or the mail matter by them received. No report direct from the senate is received, but by a report from the post-office in this city, it appears that during the year ending June 30th, 1849, the number of free written mail matter sent, The letter postage and pamphlet postage, to which this matter would have been subject, if not franked, is computed by that report at $792,709. It should be recollected that the post-office department is not only required to mail and transport this matter, after requiring the hire of additional coaches and teams, but is also subject to the actual payment of money contributed entirely by the letter postage in this manner. By law, two cents each is allowed every postmaster for the delivery of a free letter or package, if his income does not exceed $2,000 per annum. The proportion of these free papers, delivered by postmasters of $2,000 income, will not exceed one-tenth. Two cents each on the foregoing number, deducting one-tenth, was $95,161, which is actually paid to postmasters for delivering this free matter, out of money received for letter postage. Thus, it appears that for the delivery of nine-tenths of the millions of printed speeches franked and transported in the mails without compensation, (the printing of which cost about one cent each,) there is paid two cents each, not by the person who sends or by the person who receives it, or by the country as for a public service, but by those who pay postage on their private correspondence. It rests entirely in the wisdom of Congress to decide whether this franking by its members is a valuable public service, proper to continue, and it is not intended to make any remark on that topic. Were it abolished, there would probably be very much less of such matter printed; but the postage on the remainder, together with that on the correspondence of the members, and the relief of the expense of the transportation and delivery of this franked matter, would enable the department to sustain itself, though the postage was materially reduced on letters. But if Congress continue this franking, as a valuable public service, it is but just and proper that the letter correspondence, by a reduction on its postage, be relieved from its support, and that provision be made therefor in the same manner that other branches of public service are sustained. Another great additional demand of public service by the post-office department without compensation is made this year-that is, the transmission of all the blanks, returns, and correspondence required in taking the census of 1850. Three thousand reams of these blanks are already engaged. It has been said that the newspaper and pamphlet postage is not in proportion to the cost of their transportation; but it is not, therefore, to be understood that any increase of that postage. is proposed. It has long been regarded as sound public policy to promote the circulation of these publications by cheap postage, and it may be advisable to proceed further in this policy, especially in promoting their circulation in the vicinity of their places of publication, provided no decided injustice be done to the postmasters within that same vicinity. It would be desirable to have a fixed sum granted from the treasury for this public service, as to free matter, and then the postage so reduced and arranged as to provide for the remainder; but that course is impracticable, as the money from the treasury cannot be drawn until that from postage is first exhausted; and, therefore, the only safe way is to make reductions of postage from time to time, until justice is produced by leaving a balance to be annually drawn from the treasury, equivalent to the public service performed; and no extent of reduction which does not produce this effect is sufficient so long as public service is required to be performed free of postage. What should be the degree or measure of the reduction of postage at this time, is entirely a question to be settled by Congress, but it is proposed respectfully to submit what would be the probable effect of one measure of reduction. The most obvious and prominent feature now in our postage is the double price, ten cents, charged on all single letters carried over three hundred miles. The reduction of this ten cent postage, and charging all single letters at five cents each, would much simplify the manner of accounting, and render the same both more facile and perfect, would remove the dissatisfaction arising from the great difference in the postage in different offices, even in the same vicinity, but separated by this arbitrary line, and would promote and encourage the correspondence and intercourse by mail between the most distant parts of the country, which most need and demand it, in precise proportion as their other means of intercommunication are slow and unfrequent. The next inquiry is, what would be the effect of this reduction on the receipts from postage, and how would it affect the treasury? It is not possible from any returns or data in the department to ascertain, with much precision, the number of letters passing annually in the mail under this charge of ten cents. Even if the number of ten cent letters were actually known, it would still be impossible to determine how many of them were ten cent letters from being double. Thence arises the great difference in the estimate of loss of revenue from such a reduction as was presented in the report of the postmastergeneral last year, to wit, $715,187, and that of the first assistant, $306,738. From a careful examination now made of the data in the department, it is estimated that the whole number of charged letters sent through the mails the past year was 62,000,000; and of this number, about 15,500,000 were subject to the ten cent postage on account of distance. If then the reduction were to bring no more letters into the mail, the diminution of revenue therefrom the first year would be $775,000. It is already shown that the surplus on the first day of July last was $691,682 70; and that on the first of July next will be $58,710 57; which will undoubtedly increase in future years by natural accumulation and by increase of the number of letters arising from this reduction. It therefore follows that such reduction will, in the first year, occasion no charge on the treasury, and it is extremely uncertain whether its operation can ever produce that effect. A brief trial of this experiment will show its effect, and if it should not produce any important draught on the treasury, then further reductions of postage should be made. Whether any further reduction should be made, and a corresponding provision from the treasury adopted until after this has been tested by experiment, is respectfully submitted. Should the reduction now recommended produce, on experiment, a successful result without heavy charge on the treasury, the next step should probably be a reduction of the five to three cents postage on single letters, if prepaid. RAILROAD SERVICE. This is a constantly increasing service. In the current year the length of railroad routes is 6,138 miles, being an increase within two years of 1,149 miles; and it is almost daily increasing, as new roads are being completed. On these routes the mail is now transported 5,749,040 miles annually. It is true that this service is done with more despatch than the same amount of service in any other way, yet it is at much greater cost. The law of 1845, requiring this service to be classed, and fixing the maximum compensation, has in some degree reduced the cost. There is one feature of this service which frequently embarrasses the operations of the department. In all the ordinary mail contracts, provision is made that the time of arrival and departure and connexion of the mails is subject to the order of the department. This feature has never been admitted by the railroad proprietors to be inserted in their contracts. It is provided in them that if any change is made without their consent, they may abandon the contract. This often deprives the department of the power to make such changes and improvements in the time of the transportation of the mails as the public convenience requires, and subjects it to censure by those who know not this circumstance. FOREIGN MAIL SERVICE. The mail service by the way of Southampton to Bremen has been, under the contract with this department, carried the past year by the steamships Washington and Hermann for the sum of two hundred thousand dollars, and the gross amount realized in postage from that service for the year ending October 4th was $61,114. 20. The gross amount from 1st June, 1847, to October 4th, 1848, was $29,082. 51. Notice has recently been received from the proprietors that this service will be suspended until February next, in order to make the necessary repairs now required for the safety of these steamships. The mail from Charleston, via Savannah, to Havana, under the contract with this department, has been carried, since the 18th October, 1848, in the steamer Isabel, with a good degree of regularity, at the cost of $35,086. 22. No other foreign mail is carried by contract with this department. By a contract with the Navy department, made by direction of law, provision was made for carrying a mail twice in each month between New York and New Orleans, via Charleston, Savannah, and Havana, and also for like transportation between Havana and Chagres. This was entered upon in December, 1848, and has been partially performed. Under a like contract with the navy department, steamships are carrying the mails on the Pacific, between Panama and California, once in each month. By a treaty, the government of New Grenada is bound to transport the mail across the Isthmus. This service, more particularly on the Atlantic and across the Isthmus, has been very imperfectly performed, and the connexions have been very unsuccessful. This the department has not been able entirely to remedy, the contractors not being within its control. Ex. ertions have, however, been continued, and such arrangements have been made and assurances received, as to give a good degree of confidence that, with the co-operation of the navy department, the mails will hereafter receive regular despatch through this entire route of great and increasing importance. By the present organization of the post-office department, established in 1836, the mail service of the United States is sustained by appropriations entirely from the money derived from postage. Congress, by the act of March 3, 1847, entitled "An act providing for the building and equipment of four naval steamships," entered on the policy of encouraging the erection by individuals of war steamers, so that, on the emergency of a war, they might be ready for public use. Contracts were ordered and made by the navy department for three lines of war steamers; one from New York via Havana to New Orleans, and from Havana to Chagres, and onc |