Tag: Post Office

Link here. The story is interesting indeed, and is especially relevant in the context of what SpaceX and Elon Musk have done to force prices down in rocketry. This quote, about the government’s eventual response to the challenge to its postal monopoly, struck a nerve with me.

Constitutional or not, the government defended its monopoly. Six days after Spooner’s company began, Congress introduced a resolution to investigate the establishment of private post offices. Meanwhile, Spooner’s company was booming. As the US postal revenue went down, the government threatened those who were caught serving private mail carriers. In his book, Spooner noted that by March 30, he and his agents were arrested while using a railroad in Maryland to transport letters. Spooner, busy with multiple legal challenges, was released on bail by mid-June ( “Mr. Spooner’s Case.” Newport Mercury, June 15, 1844.)

People had become accustomed to inexpensive mail, and Congress reluctantly acknowledged the need to lower postal rates. Still, officials stressed that “it was not by competition, but by penal enactment, that the private competition was to be put down” (The Congressional Globe, 14. Washington: The Globe Office, 1845, page 206). In March 1845, Congress fixed the rate of postage at five cents within a radius of 500 miles. The post office adopted tactics that private carriers used to increase efficiency, such as requiring prepayment via stamps. These changes turned the post office’s budgetary deficit into a surplus within three years.

It seems that as much as things change, they remain the same.