smission of packets, but the
circumstances under which the services are conducted, whether at a
profit or at a loss, may indirectly affect the rates.

* * * * *

VI. POST OFFICE REVENUE

In England, Germany, and France the Post Office has, almost from the
first, been a source of revenue to the State. What has happened has been
that since the reform the Governments have been glad to take whatever
net revenue a penny rate would yield, but, in general, they have not
been prepared to raise that rate in order to obtain a greater
revenue.[738] The only one of the five countries which does not make,
and on principle does not wish to make, a revenue out of the Post Office
is the United States of America.

The penny letter rate is not by any means as low as the cost of the
service. It is, however, not a burdensome charge in any circumstances,
and, although so much greater than the cost, represents in a large
number of instances much less than the full measure of benefit which the
provision of the service confers on the beneficiary. This is, of course,
the ordinary case of the purchaser of a commodity securing a "consumer's
surplus."[739] Rates which yield a profit of 50 per cent. (pp. 76 and
311) must, however, be admitted to contain some element of taxation. In
France particularly the Post Office occupies a definite place in the
fiscal system.[740] There is, however, considerable diversity of opinion
among economists with regard to the theoretical character of this
revenue. Indeed, the general classification of public revenues is itself
not yet agreed upon.[741] Under any classification there is difficulty
in assigning a place for the Post Office revenue. With the simplest and
most fundamental division it has been regarded as falling under one or
other heading, according to the notion of the writer, or in accordance
with certain changes of conception based on variations in attendant
circumstances.[742]

The difficulty of classification arises from the fact that of the total
amount of the postage charges actually levied, only a portion can in any
case be regarded as taxation. A person who purchases a commodity from
the State, but in purchasing it is charged something more than its
actual value, is not taxed to the extent of the whole of the amount
which he is charged. There can be no taxation in that part of the amount
for which he receives equivalent value in the commodity purchased. It is