the revenue has been oppressed and retarded by the unfavorable business
condition of the country, of which the postal service is a faithful
indicator. The gratifying fact is shown, however, by the report that our
returning prosperity is marked by a gain of $380,000 in the revenue of
the latter half of the last year over the corresponding period of the
preceding year.

The change in the weight of first-class matter which may be carried
for a single rate of postage from a half ounce to an ounce, and the
reduction by one-half of the rate of newspaper postage, which, under
recent legislation, began with the current year, will operate to
restrain the augmentation of receipts which otherwise might have been
expected to such a degree that the scale of expense may gain upon the
revenue and cause an increased deficiency to be shown at its close.
Yet, after no long period of reawakened prosperity, by proper economy
it is confidently anticipated that even the present low rates, now as
favorable as any country affords, will be adequate to sustain the cost
of the service.

The operation of the Post-Office Department is for the convenience
and benefit of the people, and the method by which they pay the charges
of this useful arm of their public service, so that it be just and
impartial, is of less importance to them than the economical expenditure
of the means they provide for its maintenance and the due improvement of
its agencies, so that they may enjoy its highest usefulness.

A proper attention has been directed to the prevention of waste or
extravagance, and good results appear from the report to have already
been accomplished.

I approve the recommendation of the Postmaster-General to reduce the
charges on domestic money orders of $5 and less from 8 to 5 cents. This
change will materially aid those of our people who most of all avail
themselves of this instrumentality, but to whom the element of cheapness
is of the greatest importance. With this reduction the system would
still remain self-supporting.

The free-delivery system has been extended to 19 additional cities
during the year, and 178 now enjoy its conveniences. Experience has
commended it to those who enjoy its benefits, and further enlargement
of its facilities is due to other communities to which it is adapted.
In the cities where it has been established, taken together, the local
postage exceeds its maintenance by nearly $1,300,000. The limit to which
this sys