R 163. Post offices, 1789-1970.

Source: U.S. Post Office Department, Annual Report of the Postmaster General, 1970.

The source also presents a classification of the number of post offices into first, second, third, and fourth class for 1946-1970.

R 164-165. Revenues and expenditures, 1789-1970.
Source: See source for series R 163.

For 1789-1953, revenues and expenses are stated on a cash basis and therefore include payments and receipts in one year applicable to the expenses and revenues of prior years. For 1954-1962, revenues and expenses are stated on an accrual basis, with expenses reported in the year which gave rise to the earnings, whether collected or accrued. For 1963-1970, revenues and expenses are stated on an accrued cost basis.

Comparability of figures from year-to-year are affected by various factors. For example, the Post Office discontinued payment of subsidies to airlines in 1954; the Department also began receiving reimbursement for penalty and franked mail in 1954, costs which the Post Office had previously absorbed.

Expenses include expenditures for plant and equipment of a capital nature and for inventories and supplies, but no provision for depreciation is made. Expenses also include certain public service costs paid by the Post Office Department, but which the Department considered to be unrelated to the determination of the proper operating costs of the Postal Service. These include unreimbursed services for other Government agencies; specific rate subsidies for mailings of second- and third-class mail by certain nonprofit organizations, free-in-county second-class mail, classroom publications, and mail for the blind; excess rates paid to foreign air carriers; and custodial services for other Government departments and agencies. These costs were estimated to have been approximately $740 million for 1970.

Expenses of the Post Office Department do not include costs applicable to postal operations which are paid by other Government departments and agencies for retirement pay accrual, workmen's compensation and unemployment compensation for postal employees, and certain custodial and maintenance expenses. These expenses amounted to $424 million in 1970.

R 166-167. Ordinary postage stamps and stamped envelopes and wrappers issued, 1848-1970.

Source: See source for series R 163.

R 168. Postal cards issued, 1873-1970.
Source: See source for series R 163.

The Government postal card was authorized in 1872. The post card, or private mailing card, was introduced in 1898. The rate for this service has been practically identical with that of the postal cards. Business reply cards and letters as a postal service was initiated in 1928.

R 169. Pieces of matter of all kinds handled, 1886-1970.
Source: See source for series R 163.

With the establishment of the cost ascertainment system in 1926, data on the volume of mail have been obtained from sample counts

conducted quarterly for one week at representative post offices, ranging in number from 255 to over 500. These sample data were then projected to include all originating mail at all post offices in the United States. The methods of estimating the number of pieces of matter handled prior to 1926 could not be ascertained. See also general note for series R 172-186.

R 170. Surplus or deficit, 1926-1970.
Source: See source for series R 163.

The Post Office Department operated with a deficit in fiscal year 1970 as it had in all but a few years of its history. The last period in which there was a surplus was during the three World War II years, 1943 through 1945.

The accounts of the Department are maintained in such a way as to reflect the deficit in three ways—the cash deficit, the operating deficit, and the postal fund deficit. The "cash deficit" represents the excess of disbursements over receipts. The "operating deficit," which is utilized in the series, represents the excess of expense over income. The "postal fund deficit" represents the excess of obligations incurred over postal revenues.

R 171. Sales of postage stamps and other stamped paper, 1937-1970. Source: See source for series R 163.

R 172-186. General note.

The bulk of postal revenues and postal expenses cannot be allocated directly to the various classes of mail handled or to special services performed.

Postal revenues (except for about 10 percent which can be directly allocated or computed) are derived from postage acquired in the form of stamps and stamped paper and from payments under permits, which may be used by the purchaser generally on any class of mail. The result is a large common pool of revenues from numerous sources. Similarly, the several classes of mail and the special services are to a considerable extent handled by the same employees using the same buildings, equipment, operating facilities, house services, and supplies.

Pursuant to a Congressional Act of February 28, 1925 (39 U.S.C. 826), a regular, continuing cost ascertainment system was established in 1926 to collect and develop data on the revenue received (including volume and weight of mail) and cost incurred by the Post Office Department. This system was succeeded by the revenue-cost analysis system which incorporated incremental costs concepts into the system for the first time. The latter system represents the culmination of many changes and improvements for the Revenue and Cost Analysis Report (formerly the Cost Ascertainment Report).

The statistics of expenses as published annually are subject to later readjustments as a result of increases in the charges of railroad, air, or other transportation services, or increases in the salaries of Post Office Department employees, if such increases are made retroactive to an earlier fiscal year.

R 172-174. First-class mail, 1926-1970.

Source: U.S. Post Office Department, 1926-1946, Budget Digest, 1949, chapter IV, tables 5-11; 1947-1968, Cost Ascertainment Report, 1956, 1958, and 1968 issues; 1969-1970, Revenue and Cost Analysis, 1970.

Figures cover letters, matter wholly or partially in writing or typewriting, and packages (including local delivery letters), single or double postal and post cards, bills and statements of account, and matter closed against postal inspection. Each piece may not weigh more than 70 pounds or measure more than 100 inches in length and girth combined. Postage may be paid by adhesive stamps, stamped cards or envelopes, meter stamps, or permit imprint. For 1926-1929, domestic airmail could not be segregated and is included with first-class mail. Mail fees are included for 1950-1970. Box rent revenues, previously reported as unassignable are allocated to classes of mail, 1951-1955, and classified with special services for 1956-1970. For 1951-1970, the expense of free mail from members of the Armed Forces is included in first-class mail expenditures.

See also text for series R 188-189.

R 175-177. Second-class mail, 1926-1970.
Source: See source for series R 172-174.

Newspapers and periodical publications, both domestic and foreign, which meet all of the requirements set forth in part 132, Postal Service Manual, may be mailed at the second-class rates of postage. Revenues include postage payments (stamps or money order permit) and, since 1932, payment of fees for use of the second-class privilege; transient second-class matter (mailings of second-class publications by other than the publisher or news agents); publishers' second-class matter forwarded or returned, 1950-1970; mailing fees, 1951-1970; and box rent revenue allocation, 1951-1970.

Expenses include cost of publishers' second-class matter forwarded or returned, 1950-1970, and, for 1953-1970, also includes the expense of sending notices to publishers regarding undelivered mail.

R 178-180. Third-class mail, 1926-1970.

Source: See source for series R 172-174.

Third-class mail embraces all matter less than 16 ounces in weight and not qualifying as first or second class. A significant proportion of the matter mailed under third class is advertising material. Also included are keys, identification cards and tags, or similar identification devices that are without cover and bear, contain, or have securely attached the name and complete post office address of a person, organization, or concern with instructions to return to such address and a statement guaranteeing the payment of the postage due on delivery. In 1928, a special "bulk rate" was made applicable to separately addressed identical pieces of third-class matter mailed at one time. The present law requires such matter be mailed in quantities of at least 50 pounds or at least 200 pieces. Also, there is a single piece third-class rate. Revenues include postage revenues and fees for permits; domestic mail fees, 1951-1970; and box rent revenue allocation, 1951-1970.

Prior to 1953, the revenues and expenses applicable to controlled circulation publications (publications consisting primarily of advertising and distributed free or mainly free) were included with third-class and fourth-class services. For 1953-1970, controlled circulation publications are shown separately.

R 181-183. Fourth-class mail, 1926-1970.

Source: See source for series R 172-174.

This class includes mailable matter 16 ounces or more in weight, not qualifying as first or second class. The major development in this class of mail was the establishment of the parcel post system effective January 1, 1913. Books, special fourth-class and library rate items, catalogs, and matter for the blind, included in fourth class, carry special rates. Mailers of fourth-class articles may use any method of paying postage. Revenues include domestic mail fees for 1951-1970; box rent revenue allocations, 1951-1970; and special handling fees.

R 184-186. Domestic airmail, 1929-1970.
Source: See source for series R 172-174.

Since September 1948, domestic airmail includes a parcel post service and since January 1949 airmail postal and post card service. Paid airmail to and from the Armed Forces overseas and the outlying areas of the United States, formerly in international airmail, is included with domestic airmail, 1947-1970. For 1951-1970, airmail expenses include the cost of free mail from members of the Armed Forces.

Airmail expenditures include subsequent payments, as of June 30, 1950, to airlines for retroactive rate increases where effective. The decline in airmail expenses between 1953 and 1954 resulted from the transfer of subsidy payments to airlines from the Post Office Department to the Civil Aeronautics Board effective October 1, 1953. The Cost Ascertainment Report for 1953 and prior years shows division of service costs and subsidy payments.

For 1954-1970, the Post Office Department experimented with the transporting of all mail by air between a number of major cities. Such mail, carrying first-class postage, is counted within first-class service.

R 187. Post Office employees, 1926-1970.

Source: U.S. Post Office Department, Annual Report of the Postmaster General, 1970.

Included are regular or full-time employees and substitute, hourly rate, and part-time employees. Part-time employees are a substantial part of the Post Office labor force.

Prior to October 1933, the operating force for public buildings housing post offices and other Government agencies was on the rolls of the Treasury Department. On that date, the personnel were transferred to the Post Office Department. This increased the regular labor force of the Post Office Department by 8,000 employees.

R 188-190. Postal rates for first-class mail, letters and postal cards, 1792-1970.

Source: 1792-1956, U.S. Post Office Department, United States Domestic Postage Rates, 1789-1956, table I; 1958-1970, Public Law 85-426 (Postal Policy Act of 1958), Public Law 87-793 (Postal Service and Employee Salary Act of 1962), and Public Law 90-206 (Postal Service and Employee Salary Act of 1967).

The postage rates in effect in 1789 were those fixed by the Continental Congress in the Ordinance of 1782. These rates were continued until 1792. It was not until 1863 that mail was divided into "classes." In the early days of the postal service the recipient rather than the sender ordinarily paid the postage. In 1847 postage stamps were introduced, and in 1885 compulsory prepayment for all domestic letter mail was established.

The rates shown are for regular service. During the earlier years of the westward expansion, special local rates were often improvised. Thus, the first letter rate on the "pony express," which operated between Missouri and California from 1860 to 1861, was $5 for a half ounce, reduced in May 1861 to $2 for a half ounce, and in July 1861 to $1 for a half ounce because of a Government subsidy.

A considerable part of the domestic mail service between 1792 and 1863 was carried by ship, and was subject to shipletter rates. These rates are detailed in the source, table II, p. 24. In 1863, a ship and steamboat rate, double the regular rate, was made applicable to domestic mail conveyed by ships not regularly employed in carrying mail. This classification is omitted after 1879 because of its diminishing importance but the double rate is still in effect although little or no matter is mailed under these rates.

In 1863, first-class mail was defined to include letters and matter wholly or partly in writing, except book manuscripts and corrected proof sheets. In 1872, first-class mail was described as including