anies were bought up by the government at an
expense of L10,130,000. A strict telegraphic monopoly in the hands of
the government was established, and the telegraph made an integral
part of the post-office system.

In 1878 the telephone began to compete with the telegraph, and its
relation to the government telegraphic monopoly became a matter of
question. At first the government adopted the policy of collecting a
ten per cent royalty on all messages, but allowed telephones to be
established by private companies. In the meantime the various
companies were being bought up successively by the National Telephone
Company which was thus securing a virtual monopoly. In 1892 Parliament
authorized the Postmaster General to spend L1,000,000, subsequently
raised to L1,300,000, in the purchase of telephone lines, and
prohibited any private construction of new lines. As a result, by 1897
the government had bought up all the main or trunk telephone lines and
wires, leaving to the National Telephone Company its monopoly of all
telephone communication inside of the towns. This monopoly was
supposed to be in its legal possession until 1904, when it was
anticipated that the government would buy out its property at a
valuation. In 1898, however, there was an inquiry by Parliament, and a
new "Telegraph Act" was passed in 1899. The monopoly of the National
Company was discredited and the government began to enter into
competition with it within the towns, and to authorize local
governments and private companies under certain circumstances to do
the same. It was provided that every extension of an old company and
every new company must obtain a government license and that on the
expiring of this license the plant could be bought by the government.
In the meantime the post-office authorities have power to restrict
rates. An appropriation of L2,000,000 was put in the hands of the
Postmaster General to extend the government telephone system. It seems
quite certain that by 1925, at latest, all telephones will be in the
hands of the government.

The post-office savings-bank was established in 1861. Any sum from
one shilling upward is accepted from any depositor until his deposits
rise to L50 in any one year, or a total of L200 in all. It presents
great attractions from its security and its convenience. The
government through the post-office pays two and one-half per cent
interest. In 1870 there was deposited in the post-office savings-banks