in weight; and a decrease of .1 of an ounce in the average weight per piece.

In unsealed parcels there was an increase of 355,565, or 43.5 per cent., in number; of 134,730 pounds, or 60.5 per cent., in weight; and of .57 of an ounce, or 13.2 per cent., in the average weight per parcel. In unsealed circulars there was an increase of 564,785, or 23.3 per cent., in number; 18,815 pounds, or 29.3 per cent., in weight; and .02 of an ounce in the average weight per piece.

These comparisons, while interesting enough in themselves, cannot be used as a basis upon which to estimate the loss by the increase in the unit of weight, for the reason that the latter part of June usually marks a period of stagnation in the use of the mails for business purposes, while the necessities of the fall trade greatly affect the volume of the matter committed to the mails during the latter part of September. To illustrate this statement, the records of this office show that in the issue of special-request envelopes, which are used essentially for business purposes, there was an increase for the month of September as compared to the month of June, of 665, or 8.5 per cent., in the number of individual orders, and of 1,248,000, or 11.4 per cent., in the total number of envelopes called for.

The following are the striking facts shown in the record for September as compared to the record for June:

1. There was a large increase in the number of pieces and in the weight of matter mailed, and also a large increase in the average weight of all the pieces.

2. There was a decrease in the proportionate number of letters weighing less than half an ounce, although there was a considerable increase in the number of such letters mailed.

3. There was an extraordinary increase in the number of letters weighing more than half an ounce. How many of these letters were drawn from those that but for the ounce unit would have weighed less than half an ounce, and how many from circulars that would have been sent unsealed except for the ounce unit, it is impossible to determine.

4. There was a very large increase in the number of parcels sent under seal; how many of these parcels would have been sent without the seal except for the ounce unit cannot be estimated.

5. While there was a large increase in the number of sealed parcels, there was a still greater increase in the number of unsealed parcels. 6. Considering the demands of business, the increase of unsealed circulars was disproportionately low; the small increase in the average weight of circulars, added to the comparatively small increase in the number, would indicate that much of this class of matter had been transferred to first-class matter under the advantages afforded by the seal.

Owing to the different conditions of business prevailing during the periods in which the counts were made, no comparison, as before stated, can be made between the results to determine the effects of the increase in the unit of weight. That must be left to the future to be ascertained by a comparison between corresponding periods of different years. A rough estimate made upon figures which I need not give here, and based upon the proportion of letters exceeding one-half ounce, as appearing in the record for June, would place the loss somewhere near $800,000 for the first year, without allowing, however, any compensation for the substitution of sealed for unsealed matter. It is evident, however, that these compensations have already begun to manifest themselves, and they must be expected to grow as time progresses. Whether or not

they will eventually offset the loss suffered by the increase in the unit, must be left for the future to determine.

In view of the premises, and in order to estimate the effects of the change in the unit with a reasonable degree of accuracy, I would respectfully recommend that the counts be made in June and September of next year, at the same offices, and under the same conditions, as the counts of the present year.

REDUCTION OF POSTAGE ON SECOND-CLASS MATTER.

The prepayment of postage at pound rates on second-class matter went into effect on the 1st January, 1875, under the act of June 23, 1874. The rates fixed by the act were 2 cents per pound for newspapers and 3 cents per pound for periodicals. The amount collected for the six months ended June 30, 1875, was $486,443.49, and it was estimated that the collections for the next year would reach $1,000,000. The amount actually collected during the year ended June 30, 1876, was $1,014,154.27, or $788,891.98 on 39,444,599 pounds at 2 cents, and $225,262.29 on 7,508,743 pounds at 3 cents, per pound-a total of 46,953,342 pounds.

By the act of March 3, 1879, the postage on newspapers and periodicals was made uniform at 2 cents per pound, to take effect on the 1st of May of that year. The collections for the year ended June 30, 1879, amounted to $1,104,184.67. This was on 42,958,033 pounds at 2 cents and 8,167,467 pounds (to May 1) at 3 cents per pound. The total weight was 51,125,500 pounds, an increase over 1876 of 4,172,158 pounds, or 8.8 per cent., and an average annual increase of 2.8 per cent. for the three years. The increase for 1880 was at the rate of 19.9 per cent.; for 1881 it was 14.07 per cent.; for 1882 it was 11.8 per cent.; for 1883 it was 9.01 per cent.; for 1884 it was 10.82 per cent.; and for 1885 it was 6.96 per cent. This is an average annual increase for the six years of 12.09 per cent.

The number of pounds mailed during the last fiscal year was 101,057,963, an increase over the year ended June 30, 1876, the first full fiscal year of the pound rates, of 54,104,621 pounds (27,052,82 tons), or 115 per cent.

By the act of March 3, 1885, the postage on second-class matter was reduced to 1 cent per pound, to take effect July 1, 1885. On the weights and amounts collected for 1876 and 1885, respectively, the reduction was at the rate of 55 per cent. from the charges fixed by the act of June 23, 1874. The indications are that the reduction in the rate has thus far at least not led to an abnormal increase in the volume of matter committed to the mails.

Advanced returns have been obtained from 30 of the largest postoffices, covering the business from July 1 to October 31, inclusive. These 30 offices embrace most of the principal cities, and they collected 72.4 per cent. of the entire revenue realized on second-class matter during the last fiscal year. During the quarter ended September 30, 1885, the 30 offices in question mailed 18,697,250 pounds of second-class matter, an increase of 412,900 pounds, or 2.2 per cent., as compared to the quarter ended September 30, 1884. During the month ended October 31 the number of pounds mailed at the same offices was 6,447,767, an increase of 98,050 pounds, or 1.5 per cent., as compared to October, 1884. For the four months ended October 31 the total increase was 511,169 pounds, or 2 per cent., as compared to the corresponding period of the

previous year. An increase is shown at 15 and a decrease at a like number of the 30 offices. The following exhibit of some of the leading offices separately may be of interest, viz:

New York.-For quarter ended September 30, 1885, decrease 4.2 per cent.; for month ended October 31, decrease 2.3 per cent.; total for four months ended October 31, decrease 3.7 per cent.; for year 1885 over 1884, increase 5.42 per cent.; for 1884 over 1883, 4.38 per cent.; for 1883 over 1882, 5.9 per cent.; for 1882 over 1881, 10 per cent.; and for 1881 over 1880, 11.6 per cent. Average annual increase for five years from July 1, 1880, to June 30, 1885, 7.46 per cent. The decrease for the four months ended October 31, 1885, from the average of the year ended June 30, 1885, was at the rate of 1.9 per cent., and over the average of the year ended June 30, 1884, it was 3.3 per cent. For the month of Oc tober, 1885, alone, the increase was 9.2 per cent. over the average of the quarter ended September 30, 1885; 4.7 per cent. over the average of the year ended June 30, 1885, and 10.3 per cent. over the average of the year ended June 30, 1884.

Chicago. For quarter ended September 30, 1885, increase 24.1 per cent.; for month ended October 31, decrease 3.5 per cent.; total for four months ended October 31, increase 17.5 per cent.; for year 1885 over 1884, increase 16.02 per cent.; for 1884 over 1883, increase 24.56 per cent.; for 1883 over 1882, decrease 8 per cent.; for 1882 over 1881, increase 10.8 per cent., and for 1881 over 1880, increase 21.2 per cent. Average annual increase for five years from July 1, 1880, to June 30, 1885, 12.91 per cent. For the four months ended October 31, 1885, the increase over the average of the year ended June 30, 1885, was 16.5 per cent., and over the average of the year ended June 30, 1884, it was 35.2 per cent. For the month of October, 1885, there was a decrease of 27.5 per cent., as compared to the average of the quarter ended September 30, 1885, and also a decrease of 9.2 per cent., as compared to the aver age of the year ended June 30, 1885. There was an increase of 5.2 per cent. for the month of October, 1885, as compared to the average of the year ended June 30, 1884.

Boston. For quarter ended September 30, 1885, increase 9.6 per cent.; for month ended October 31, increase 3.2 per cent.; total for four months ended October 31, increase 7.8 per cent.; for 1885 over 1884, increase .19 per cent.; for 1884 over 1883, increase 9.01 per cent.; for 1883 over 1882, increase 15.5 per cent.; for 1882 over 1881, increase 15.3 per cent.; and for 1881 over 1880, increase 10.9 per cent. Average annual increase for five years from July 1, 1880, to June 30, 1885, 10.18 per cent.

Philadelphia. For the quarter ended September 30, 1885, decrease 1.7 per cent.; for month ended October 31, increase 27.8 per cent.; total for four months ended October 31, increase 6.3 per cent.; for 1885 over 1884, increase 3.56 per cent.; for 1884 over 1883, increase 8.34 per cent.; for 1883 over 1882, increase 4.8 per cent.; for 1882 over 1881, increase 20.5 per cent.; and for 1881 over 1880, increase 10.7 per cent. Average annual increase for the five years from July 1, 1880, to June 30, 1885, 9.58 per cent.

Saint Louis.-For the quarter ended September 30, 1885, decrease 5.6 per cent.; for month ended October 31, decrease 9.3 per cent.; total for four months ended October 31, decrease 6.5 per cent.; for 1885 over 1884, increase 10.5 per cent.; for 1884 over 1883, increase 13.2 per cent.; for 1883 over 1882, increase 12.2 per cent.; for 1882 over 1881, increase 7.7 per cent.; aud for 1881 over 1880, increase 19.5 per cent. Average

annual increase for the five years from July 1, 1880, to June 30, 1885, 12.6 per cent.

Cincinnati. For the quarter ended September 30, 1885, increase 2.4 per cent.; for month ended October 31, increase 15.9 per cent.; total for four months ended October 31, increase 5.6 per cent.; for 1885 over 1884, decrease 7.7 per cent.; for 1884 over 1883, increase 6.14 per cent.; for 1883 over 1882, increase 12.8 per cent.; for 1882 over 1881, increase .4 per cent.; and for 1881 over 1880, increase 6.9 per cent. Average annual increase for the five years from July 1, 1880, to June 30, 1885, 3.7 per cent.

San Francisco.-For the quarter ended September 30, 1885, increase .2 per cent.; for month ended October 31, decrease 8.8 per cent.; total for four months ended October 31, decrease 2.1 per cent.; for 1885 over 1884, increase 2.59 per cent.; for 1884 over 1883, increase 12.05 per cent.; for 1883 over 1882, increase 14 per cent.; for 1882 over 1881, increase 12.5 per cent.; for 1881 over 1880, increase 1.3 per cent. Average annual increase for the five years from July 1, 1880, to June 30, 1885, 8.48 per cent.

Milwaukee. For the quarter ended September 30, 1885, increase 7.8 per cent.; for month ended October 31, decrease 10 per cent.; total for four months ended October 31, increase 2.8 per cent.; for 1885 over 1884, increase 9.87 per cent.; for 1884 over 1883, increase 23.6 per cent.; for 1883 over 1882, increase 22.4 per cent.; for 1882 over 1881, increase 13.8 per cent.; and for 1881 over 1880, increase 8.8 per cent. Average annual increase for the five years from July 1, 1880, to June 30, 1885, 15.7 per cent.

Cleveland. For the quarter ended September 30, 1885, increase 18.9 per cent.; for the month ended October 31, decrease 2.9 per cent.; total for four months ended October 31, increase 12.2 per cent.; for 1885 over 1884, increase .66 per cent.; for 1884 over 1883, increase 5.03 per cent.; for 1883 over 1882, increase 41.5 per cent.; for 1882 over 1881, decrease 11.2 per cent.; and for 1881 over 1880, increase 13.9 per cent. Average annual increase for the five years from July 1, 1880, to June 30, 1885, 9.99 per cent.

Taking the thirty offices as a whole, the increase for the four months ended October 31, 1885, was 3 per cent. over the average of the year ended June 30, 1885, and 10.5 per cent. over the average of the year ended June 30, 1884. For the month ended October 31, 1885, the increase was 3.4 per cent. over the average of the quarter ended September 30, 1885; 5.6 per cent. over the average of the year ended June 30, 1885; and 13.3 per cent. over the average of the year ended June 30, 1884.

Allowing for an increase of 8 per cent. on the number of pounds (101,057,963) mailed at all the post-offices during the year ended June 30, 1885, would give 109,142,600 pounds for the current year. At an increase of 10 per cent. on this latter number, the total weight for the year ended June 30, 1887, would be 120,056,860 pounds, the postage on which would amount to $1,200,568.60, and this amount would also represent the loss for that year caused by the reduction in the rate. The ratios of increase just assumed are, however, purely conjectural, sufficient time not having elapsed to estimate the results of the change in the rate with any degree of certainty.

Concerning the system of prepayment at pound rates, and its immediate effects, the following from the report of the Postmaster-General for the year ended June 30, 1875, may be of interest:

The act of June 23, 1874, requiring prepayment in stamps of postage on newspapers and periodical publications, mailed from known offices of publication or news

agencies, and addressed to regular subscribers or news agents, went into effect on the 1st of January, 1875, and from present indications it will realize about $1,000,000 for the first calendar year. This is not a material variation from the average results of the old law, though during the last year in which this latter was in operation the amount was increased by the payment of postage on newspapers circulating within the county of publication-a requirement that was discontinued at the end of one year. While, therefore, there has been no increase in the aggregate receipts, there has been a large net gain by saving the commissions on collections allowed by the old law, as under the present law the great bulk of postage is paid at the large offices, whose salaries are not affected by this item. Under the old law there was no check to insure collections at the office of destination, and the consequence was that much matter went unpaid; and it is a satisfaction that, under the present more equitable mode, the universal collections have made up for the reduction in the rates.

The new system has worked so admirably, and has given such general satisfaction, that no change is deemed necessary.

REVENUES OF THE PAST.

The exhibits of revenue in the past may not only aid in the quest for information as to the receipts for the future, but they will prove of lasting value for the statistical purposes of the Department. To correctly appreciate the growth in the ordinary postal revenue, it will be necessary to eliminate from the gross receipts of the postal service two elements, whose influence is not only important but greatly misleading, upon superficial examination, in considering the revenue immediately or nearly relating to the subject of postages paid directly by the public. These two elements are the net profits from the money-order business, and the revenue derived for a series of years from official postage-stamps and stamped envelopes. The former should be excluded not only because they are irregular in amount as between the different years, but for the reason that the amount for any particular fiscal year is not ascertained until after the close of the year, when it is credited as a whole to the last quarter, giving to that quarter an undue proportion of the gross receipts of the entire year. The official postage-stamps and stamped envelopes deserve more extended notice in view of their effect upon the postal receipts during the period in which they were used.

OFFICIAL POSTAGE STAMPS AND STAMPED ENVELOPES.

The use of official postage-stamps and stamped envelopes having ceased on the 30th of June, 1884, and the same having been declared invalid for postages by the act of July 5, 1884, the stock remaining in the hands of the stamp and envelope contractors was destroyed in February last under the supervision of a committee appointed by the Postmaster General. The report of the committee, covering other subjects also, is on the files of this office, and a copy is to be found on pages 71 to 86 of Ex. Doc. No. 264, House of Representatives, second session, Forty-eighth Congress. The stamps and envelopes were issued to prepay postages on official matter for the several Executive Departments of the Government under the act of March 3, 1873, following the repeal of the franking privilege. The amounts were credited to the postal revenue, appropriations for the purchase of the articles at their representative values having been made by Congress. In this the Post-Office Department was included with the other Departments until 1876, when further appropriations for the purpose were denied to the Department by Congress, although the use of the stamps was still required. Subsequent to that date, therefore,