The Archive · 1922

The Postal Increases

To the Editor of the "Norra-Curya Darty News."

Sir,—The substantial increase in the postal charges which are to take effect from November 1 have provoked widespread indignation among all classes, both native and foreign. I understand protests have poured in from all quarters and it is to be hoped that this ill-advised measure will be quickly rescinded.

Te is a sound principle in political economics, that when a Government undertakes to serve the public by providing essential Fublic utilities, to the exclusion of private enterprise, it is inconsistent with the cheet in view end unjust to the public to extort charges any greaten than are necessary to cover the actual cost providing such utilities or for their inyprovement or extension. Therefore, unless and until the Postal Administration is able to assure the public that the increased charges are absolutely necessary for these purposes and that no part of the increased revenue will be applied for any other purpose, all business firms, corporations and individuals have an undoubted right strenuously to protest against what appears to be an unnecessary and unjustifiable tax on the public in excess of the cost of the public service vendered.

The belief is that such assurance cannot be given in view of the fact that ever since: v15 there has been a rapidly increasing surplus of income over and above expenses. For the year 1920 this surplus was $2,2)2,069 and this after including in the general expenses out of revenue $1,263,326 on account of capital expenditure, so that the actual surplus was $3,475,- 295 on an income of $12,679,122 or more than 2q per cent. of the income was in excess of working expenses. These figures apparently give a decisive answer to the question whether the increased charges bear any relation to the needs of the Postal Service.

Much credit is due tu the Postal Administration for the very high standard of efficiency achieved in so short a time and it is a great ity that those responsible for this ically wonderful record should be compelled to mar their achievement by permitting the Service to te used as a means of extorting money from the public for other the requirements of the Service itself.

I have referred to one objection only in this letter because this is itself complete and unanswerable, but there are other very obvious and weighty objections to the proposed increases in the postal charges. Indeed it appears to me that they cannot be defended on any grounds that will satisfy business men and that to enforce them, especially aow, is as untimely and unwise as it is unwarranted and economically unsound.

I am, ete.,

Text read from the printed page and cleaned; old type leaves the occasional error.

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