rigours of the American
climate and the generally poor state of the roads, it could not be
anticipated that rates which had been found successful in England, with
its comparatively small area and dense population, with its less
difficult climate and its better facilities for intercommunication,
would prove equally successful. In the end a compromise was
adopted--uniformity of rate, but a rate moderately high, viz. 5
cents.[125]

A period of great development ensued, especially in the Maritime
Provinces. Under the stimulus of the reduction of the rate to the new
uniform charge of 5 cents per 1/2 ounce, in place of a charge graduated
by distance which had averaged over 8d. a letter, the number of letters
increased so rapidly that in four years the gross revenue had recovered
its former level.[126] But in both Nova Scotia and New Brunswick the
account regularly showed a heavy deficit, in partial explanation of
which there was the fact that both Governments carried newspapers in the
mails free of charge. In Canada, with a larger number of commercial
communities, the results were somewhat better. But even there the
accounts showed a deficit until 1859. From that year there was an annual
surplus until 1865, when the heavy charges for conveyance of the mails
by railway began to tell.

These conditions continued until the confederation of the British North
American Colonies in 1867. The control of the Post Office was within the
powers assigned to the new Dominion Government. The Government was
desirous of not falling behind other countries in the provision of Post
Office services, and it was necessary for political reasons to take
advantage of every available means for facilitating intercommunication
between the different parts of the Dominion. Shortly after
confederation, therefore, a Bill to establish and regulate a Federal
Dominion Post Office was brought before the Dominion Parliament.

A reduction of the letter rate of postage from 5 cents to 3 cents per
1/2 ounce was proposed, and a rate of postage on newspapers. In some of
the provinces newspapers had previously been carried by the posts free
of charge; and the establishment of a rate of postage for them was to
some extent bound up with the reduction of the letter rate, since with
the lower rate for letters the free transmission of newspapers would
have proved so great a strain on the revenue, that either the Government
would have been compelled to make larger grants