pire. In
1898 penny postage was established between the United Kingdom and all
the chief colonies except Australia, the Cape, and Natal. In 1905 these
colonies joined, and were followed by Egypt and the Sudan.

In 1907 a special rate of 1d. a pound was established for magazines and
trade journals posted in the United Kingdom, for Canada. The rate did
not cover the cost of service, and its justification is to be sought in
political considerations. In order to secure the low rate Canada
undertook to defray the whole cost of ocean transport. Difficulties in
regard to the financial arrangements arose subsequently, and on the 1st
January 1915 the rate was altered to the following, viz. 1d. for the
first 6 ounces, 1-1/2d. for 1-1/2 pounds, 2-1/2d. for 2-1/2 pounds, and
so on.

Under the old system the rates of postage were for the most part
nominal, that is to say, no attempt was made to adjust the rates to the
actual cost of providing the service, although in allocating between the
different States the total amount of postage, a rough assignment as
between land and sea services was made.[694] The usual 6d. rate for
single letters to and from the various colonies illustrates this. The
actual cost of service must have varied greatly. In the case of the
colonies other considerations, mainly political, were allowed to enter.
In the case of foreign countries the whole arrangements for the
interchange of correspondence were based on such agreements as could be
arrived at, and the actual rates of postage were determined in that
way.[695] The chief difficulties in negotiations occurred in connection
with the division between the contracting parties of the postage
collected. The packet service was often conducted at a loss, and the
rates of postage on foreign and colonial letters were not, in general,
fixed with a view to rendering the service self-supporting, although
this was regarded as a condition to be aimed at.[696]

By the Consolidating Acts of 1837 (1 Vict., cap. 34 & 36) the
Postmaster-General was empowered to require the masters of outward-bound
vessels to accept mails, and to deliver them without delay on arrival at
the port of destination, under penalty of [L]200.

The general character of the foreign packet service was entirely changed
by the introduction of steam propulsion, which greatly shortened the
length of voyages and introduced a degree of punctuality and regularity
hitherto undreamt of. Until this time the P