It
is like an attempt to raise a large revenue by heavy tolls: it obstructs
all operations by which goods are conveyed from place to place, and
discourages the production of commodities in one place for consumption
in another; which is not only in itself one of the greatest sources of
economy of labour, but is a necessary condition of almost all
improvements in production and one of the strongest stimulants to
industry and promoters of civilization."--J. S. Mill, _Principles of
Political Economy_, London, 1871, vol. ii. p. 462.

"It may happen (quite acceptably) that a surplus comes in from an
undertaking which is primarily carried on for administrative purposes
alone. A striking instance of this is afforded by the letter post. If
the administrative purpose in question admitted of no aim beyond the
covering of its own expenses, such a surplus would have no meaning, or
at any rate no other meaning than that of a surplus in the hands of a
consumers' club, which is returned to the members, on the closing of the
accounts for the year, in the proportion in which they have contributed
to it. The fact that the postal service not only retains any such
surplus but even (with due regard to its primarily administrative
function) consciously seeks it, is to be explained on the ground that,
without hindrance to the administrative function, the different
abilities of the citizens to contribute to public purposes may be drawn
on by this means, with desirable results which are not attainable in any
other way."--G. Cohn, op. cit., p. 94. Cf. _The Development of the Post
Office_, Fabian Research Department, London, 1916, pp. 43-7.

[756] The extent to which any such disadvantage may be experienced is,
of course, largely minimized by the existence of a low rate containing
no element of tax, (see _supra_ Chapter IV) for most of the formal
documents of commerce.

[757] "It is wholly misleading to point to the fact that the business of
the Post Office now yields a very considerable profit, and to suggest
that increased remuneration can easily be provided from that source.
That profit is not in a bag to be drawn upon at will. It goes into the
National Exchequer, and forms part of the revenue of the country, and if
two or three millions is taken from it, the deficit in the Exchequer
must be made good in other ways. And it has never been admitted, nor can
it now be admitted, that the profits of the Post Office belong in equity
to the staff r