assaing proposed, among other reforms, the reduction of the letter
rate to 10 centimes for each 15 grammes. Although admitting the
desirability of granting the boon, the Budget Commission were unable to
recommend that course on account of the serious effect on the net
revenue which must be anticipated.[209]
In 1900 M. Millerand, Minister for Commerce, Industry, Posts, and
Telegraphs, in a report to the President,[210] recommended a reduction
of the rate on the grounds that it would give satisfaction to the
public, and, at the same time, increase appreciably the number of
letters transmitted by post. He suggested the following scale:--
Letters not exceeding 15 grammes 10 centimes
From 15 to 50 grammes 15 "
Over 50 grammes 5 " for each
50 grammes, or fraction
of 50 grammes
Such a reduction would bring the rate of letter postage down to the
level of the existing rate for postcards; and M. Millerand regarded the
reduction of the latter rate to 5 centimes as an inevitable corollary,
and a reform which might safely be made.[211] Assuming this further
reduction, and applying the proposed reduced rates to the statistics of
existing traffic--ignoring both the probable increase of traffic and the
increase of expenses which would result from the increase of traffic--it
was estimated that the loss to revenue would be--
fr.
On single letters 34,071,584
On heavy letters 4,707,836
On charged letters 404,787
On postcards 2,569,787
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Total 41,753,994
The reduction of revenue would be 35.6 per cent. of the total yield.
The reform of 1878 had entailed an increase of working expenses of about
37 millions (5-1/2 millions of capital cost, and 31-1/2 millions of
annual expenses). The increase of traffic from the proposed reform
would, however, be 17 per cent. less than the increase after 1878
(because the reduction was five-fifteenths of the rate instead of
six-fifteenths as in 1878), and the increase of cost would therefore be
proportionately less. Calculated on this basis, the increase was
estimated at 31,037,829 fr. (4,920,000 fr. capital expenses and
26,117,829 fr. annual).
In all, therefore, the reduction would involve a loss of revenue of
41,753,994 fr., and an increase of expen
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