parcel-post conventions have been concluded with
Barbados, the Bahamas, British Honduras, and Mexico, and are now under
negotiation with all the Central and South American States. The increase
of correspondence with foreign countries during the past three years is
gratifying, and is especially notable and exceptional with the Central
and South American States and with Mexico. As the greater part of mail
matter exchanged with these countries is commercial in its character,
this increase is evidence of the improved business relations with them.
The practical operation of the parcel-post conventions, so far as
negotiated, has served to fulfill the most favorable predictions as to
their benefits. In January last a general postal convention was
negotiated with the Dominion of Canada, which went into operation on
March 1, and which practically makes one postal territory of the United
States and Canada. Under it merchandise parcels may now be transmitted
through the mails at fourth-class rates of postage.

It is not possible here to touch even the leading heads of the great
postal establishment to illustrate the enormous and rapid growth of its
business and the needs for legislative readjustment of much of its
machinery that it has outgrown. For these and valuable recommendations
of the Postmaster-General attention is earnestly invited to his report.

A Department whose revenues have increased from $19,772,000 in 1870 to
$52,700,000 in 1888, despite reductions of postage which have enormously
reduced rates of revenue while greatly increasing its business, demands
the careful consideration of the Congress as to all matters suggested by
those familiar with its operations, and which are calculated to increase
its efficiency and usefulness.

A bill proposed by the Postmaster-General was introduced at the last
session of the Congress by which a uniform standard in the amount of
gross receipts would fix the right of a community to a public building
to be erected by the Government for post-office purposes. It was
demonstrated that, aside from the public convenience and the promotion
of harmony among citizens, invariably disturbed by change of leasings
and of site, it was a measure of the highest economy and of sound
business judgment. It was found that the Government was paying in rents
at the rate of from 7 to 10 per cent per annum on what the cost of such
public buildings would be. A very great advantage resulting from such a
la