Sessional_Paper_1890 — Page 389

385.

13. The total number of letters in 1889 carried at 10 cent rates to the United Kingdom and other countries by the British and French Packets is represented by the following sum.

(14,469 +9,375 + 17,089) × 13—532129.

14. From para. 12 it is apparent that even with exchange at its present comparatively high rate, the reduction of the charge for Postage from 10 to 5 cents per oz. would result in a large loss to the Colony. A computation shows that it would require exchange to touch 4/- before any loss could be prevented.

15. If the postage per half oz. were reduced from 10 cents to 5 cents, an increase in the amount of correspondence would probably follow. Reference to the last part of paragraph 11 will show, however, that an increase in the number of letters conveyed will only augment the dead loss which the revenue of the Colony will annually incur, for it is there demonstrated that, with exchange at 3/7 and rates at 5 cents a half ounce, the Colony must incur a yearly dead loss of £159; and if this loss is divided up amongst the 532,129 letters per annum carried by the French and English Mails to the United Kingdom and other countries, we get a quotient of 07d. loss on each letter; from which it is clear that any addition to the quantity of letters will involve a proportionate drain on the Revenue.

16. In the above calculation, all the figures are approximate only. Letters conveyed at 10 cents per oz. rates by English and French mails to countries other than the United Kingdom have been included, on the assumption that the anomaly of a 5 cent rate to London and a 10 cent rate to Singapore or France would not be allowed to exist.

17. By English mail, Hongkong pays to Egypt 22d., Italy 53d., France ·67d. and United Kingdom 1.67d. Total 3·09d. on each half ounce letter. By French mail, Hongkong pays to France and Egypt charges equal to 1.89d. on each half ounce letter.

T. SERCOMBE-SMITH, Acting Assistant Postmaster General.