PENNY POSTAGE.

Press, Volume LXI, Issue 18407, 13 June 1925, Page 14

PENNY POSTAGE.

LOSS NOT MORE THAN £200,000. (special to "the press.") WELLINGTON, June 12. The statement made by tho Federal Postmaster-General (Mr W. G. Gibson) in tho Commonwealth Parliament that the change from one penny halfpenny to one penny postage in New Zealand had meant a loss of revenue amounting to £231,000 is a fair estimate, considering that ho probably based his figure on what it was estimated would be the drop before the reduction in postage rates was made.

Penny postage was reverted to in New Zealand ill October, 1923, when it was estimated by the PostmasterGeneral 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 businosa, the loss 011 tho full year of penhy postage has not a&ounted to more than £200,000. The exact figure, assuming that it was possible to work it out to the last £l, would probably bo somewhere between £IBO,OOO and £200,000. The exact result of fhe change, canhat be accurately gauged, because varying factors enter into the situation. Whoa a country continuba to tnako progress and the population grows, the volume of postal business expands in sympathy, and again tlie effect of reducing charges is for them to respond and take an increased advantage of postal facilities. This is what has actually been the experience in New Zealand. The postal business ia buoyant as a consequence of the reductions.

Since the lowering of the letter rate, tradespeople now frequently send but circulars and accounts in sealed envelopes at letter rates, namely, ono ponny, instead of posting unclosed envelopes for a halfpenny. Those who are unfortunate enough to be more or IeBS frequent recipients of bills do not like getting them in unsealed cnvolopes, because thorc is then no guarantco of the possible state of their exchequer being kept secret from the public eye.