History of United States postage rates

The system for mail delivery in the United States has developed with the nation. Rates were based on the distance between sender and receiver in the early years of the nation. In the middle of the 19th century, rates stabilized to one price regardless of distance. Rates were relatively unchanged until 1968, when the price was increased every few years by a small amount. Comparing the increases with a price index, the price of a first class stamp has been steady. The logo for the Post Office showed a man on a running horse, even as the railroads and then motorized trucks moved mail. In 1970, the Post Office became the Postal Service, with rates set by the Postal Regulatory Commission, and some oversight by the Congress. Air mail became standard in 1975. In the 21st century, prices were segmented to match the sorting machinery in use; letters too large for the machines required slightly higher postage.

Main article: United States Postal Service
Seal of the former U.S. Post Office Department (1792–1971), predecessor to the USPS

Postal rates to 1847

Initial United States postage rates were set by Congress as part of the Postal Service Act signed into law by President George Washington on February 20, 1792. The postal rate varied according to "distance zone", the distance a letter was to be carried from the post office where it entered the mail to its final destination. Rates were adopted in 1847 for mail to or from the Pacific Coast and in 1848 for mail sent from one place in the west to another place in the west. There were double and triple rates as a letter's size increased. There were ship fees which were also added (i.e. mail to Hawaii). The ship fee, including the ship rate on letters for delivery at the port of entry, were on a per letter basis, rather than weight. The United States issued its first postage stamps in 1847. Before that time, the rates, dates and origin of the letter were written by hand or sometimes in combination with a handstamp device.[1]

US Postal Service

Since enactment of the Postal Reorganization Act of 1970, postage rates have been set by the Postal Regulatory Commission.

Historical rates
United States domestic first class & postcard rates, 1863–present (USD)[conversion 1]
Date IntroducedLetters
(for first ounce)		Packages
(for first ounce)		Additional
(per ounce)		 Postcard rate[2] International rate (letters) Comments
March 3, 1863.06
(.03 for ​1⁄2 oz)		.06.06
(.03 per ​1⁄2 oz)		.06 .02 per half ounce in drop boxes[3][4]
October 1, 1883.04
(.02 for ​1⁄2 oz)		.04.04
(.02 per ​1⁄2 oz)		.04 [4]
July 1, 1885.02.02.02.02 [4]
July 1, 1898.02.02.02.01 [5]
November 2, 1917.03.03.03.02 War Years
July 1, 1919.02.02.02.01 Dropped back by Congress
July 1, 1928.02.02.02.01
July 6, 1932.03.03.03.01
January 1, 1952.03.03.03.02
August 1, 1958.04.04.04.03
January 7, 1963.05.05.05.04
January 7, 1968.06.06.06.05
May 16, 1971.08.08.08.06
March 2, 1974.10.10.10.08
September 14, 1975.10.10.09.07 Last surface mail rate
December 31, 1975.13.13.11.09 All domestic first class & postcards by airmail
May 29, 1978.15.15.13.10 A Stamp Used
March 22, 1981.18.18.17.12 B Stamp Used
November 1, 1981.20.20.17.13 C Stamp Used
February 17, 1985.22.22.17.14 D Stamp Used
April 3, 1988[6].25.25.20.15 E Stamp Used
February 3, 1991.29.29.23.19 F Stamp Used (also 4 cent F makeup rate stamp)
January 1, 1995.32.32.23.20 G Stamp Used (also 3 cent G makeup rate stamp)
January 10, 1999.33.33.22.20 H Stamp Used (also 1 cent H makeup rate stamp)
January 7, 2001.34.34.21.20 Nondenominated Stamps Used
July 1, 2001.34.34.23.21 Nondenominated Stamps Used
June 30, 2002.37.37.23.23 Flag and Antique Toy Stamps Used
January 8, 2006.39.39.24.24 Lady Liberty Flag Stamp Used
May 14, 2007.411.13.17.26 Shape-based postage pricing introduced; Forever stamps introduced; different prices for letters and packages for the first time
May 12, 2008.421.17.17.27 Price change announced February 11, 2008
May 11, 2009.441.22.17.28 Price change announced February 10, 2009
April 17, 2011.441.71 (3 oz).20 (letters)
.17 (packages)		.29 [7]
January 22, 2012.451.95 (3 oz).20 (letters)
.17 (packages)		.32
January 27, 2013.462.07 (3 oz).20 (letters)
.17 (packages)		.33 Price change announced October 11, 2012
January 26, 2014.492.32 (3 oz).21 (letters)
.17 (packages)		.34 Price change announced September 25, 2013[8]
May 31, 2015.492.54 (3 oz).22 (letters)
.20 (packages)		.35
April 10, 2016.47[9]2.54 (3 oz).21 (letters)
.20 (packages)		.34 Price change announced February 25, 2016
January 22, 2017 .49[10] 2.67 (3 oz)[11] .21 (letters)
.18 (packages)		 .34 Price change announced October 12, 2016
January 21, 2018 .50[12] 3.50 (4 oz)[13] .21 (letters)
.35 (packages)[14]		 .35 Price change announced October 6, 2017
January 27, 2019 .55 .15 (letters) .35 1.15 Price change announced October 19, 2018
January 26, 2020[15] .55 .15 (letters) .35 1.20[16]
  1. 1 oz is 28.34 g.

Historical trend
Nominal and inflation adjusted first-class postage rates in the US

Taking the above data and plotting it yields the graph shown to the right. The dark plot is the nominal issued price of the stamp and the light plot is the price adjusted for inflation and is shown in 2019 US cents.

This plot shows that, despite the rise in the nominal cost of a first-class stamp, the adjusted cost of the stamp has stayed relatively stable. The large jumps in the early 1900s are because a change by a single penny was large compared to the cost of the stamp. For example, the price increase from $0.02 to $0.03 on July 6, 1932 was a 50% increase in cost. Additionally, while the cost of the stamp itself remained fixed, the adjusted price in 2019 dollars was not fixed over time which added to larger jumps in adjusted prices.

Historical notes

Domestic parcel post service was adopted in 1913, 25 years after the Post Office had agreed to deliver international parcel post packages pursuant to the Universal Postal Union treaty and various bilateral agreements with other nations.[17] “The establishment of parcel post in 1913 had a tremendously stimulating effect on the national economy; it opened a world of opportunities for both farmers and merchants alike.”[17] Initially, there were no or few postal regulations governing packages mailed by parcel post. E.g., to construct a bank in Vernal, Utah, in 1916, a Salt Lake City company ascertained that the cheapest way to send 40 tons of bricks to the building was by parcel post.[18]

Bulk postal rates were restructured in 1996:

  • Second Class became Periodicals
  • Third and Fourth Class Mail became Standard Mail (A) and (B)
  • Special Fourth Class Mail was renamed Special Standard Mail

In 2007, First Class Mail was restructured to include variable pricing based on size, not just on weight. Shape-based postage pricing is a form of dimensional weight. Also at that time, International Parcel Post air service was re-branded as Priority Mail International, and Parcel Post surface service was discontinued for international destinations.[19]

Regular Air Mail service began in 1918 and over the years rates varied considerably depending on distance and technology. Domestic Air Mail, as a class of service, officially ended May 1, 1977. By that time all domestic First Class Mail was being dispatched by the most expeditious means, surface or air, whether or not the Air Mail postage had been paid.

Additional charges for Special delivery existed from 1885 to 2001. Today, Express Mail Overnight is the most similar service level.

During the summer of 2010 the USPS requested the Postal Regulatory Commission to raise the price of a first class stamp by 2 cents, from 44 cents to 46 cents, to take effect January 2, 2011. On September 30, 2010, the PRC formally denied the request, but the USPS filed an appeal with the Federal Court of Appeals in Washington DC.[20][21]

On September 25, 2013, the USPS announced a 3 cent increase in the First Class postal rate, to be effective January 26, 2014, increasing the price of a stamp to 49 cents. Bulk mail, periodicals, and package service rates were also increased by 6 percent. A loss of US$5 billion during the 2013 fiscal year was the reason given for the increase.[22]

The legislation which set the price to 49 cents was enacted as a temporary measure and as an "exigent surcharge for mailing products and services".[23] However, this legislation was set to expire in April 2016. As a result, the Post Office retained one cent of the price change as a previously allotted adjustment for inflation, but the price of a first class stamp became 47 cents: for the first time in 97 years (and for the third time in the agency's history[24]), the price of a stamp decreased.

See also

Unions of the U.S. Postal Service:

History:

References
  1. Smoot, Frederick. "Early United States Domestic Postal Rates". TNGenWeb. Retrieved June 29, 2014.
  2. "Rates for Stamped Cards and Postcards". HISTORIAN, United States Postal Service. February 2019. Retrieved December 8, 2019. Postcards (privately printed cards) did not qualify for a special postage rate until July 1, 1898. Since then, the rates for postcards have been the same as for stamped cards (produced by the Postal Service) except for the period from April 15, 1925, to July 1, 1928.
  3. Encyclopædia Britannica, 9th ed., Postal Service
  4. "Rates for Stamped Cards and Postcards" (PDF). HISTORIAN, United States Postal Service. February 2019. Retrieved December 8, 2019.
  5. "U.S. Domestic Postcard Rates". Smithsonian National Postal Museum. Washington, D.C. Retrieved December 8, 2019.
  6. "Postal rates go up today". The Galveston Daily News. Galveston, TX. AP. April 3, 1988. Archived from the original on December 11, 2018. Retrieved October 29, 2016 – via Newspapers.com.
  7. "2011 U.S. postage rate increase". Retrieved December 8, 2019. NOTE: The price for a First-Class Mail stamp did not increase in 2010, nor 2011.
  8. "U.S. Postal Service Announces New Prices for 2014". United States Postal Service Postal News. September 25, 2013. Retrieved December 8, 2019.
  9. "Forced Price Reduction to Worsen USPS Financial Condition by $2 Billion Per Year". United States Postal Service Postal News. February 25, 2016. Retrieved December 8, 2019.
  10. "Postal Service announces 2017 mailing services prices". United States Postal Service Postal News. Retrieved January 8, 2017.
  11. "USPS Website Price List, Notice 123". Archived from the original on 2016-07-07. Retrieved 2016-06-25.
  12. "U.S. Postal Service Announces New Prices for 2018". Unites States Postal Service Postal News. October 6, 2017. Retrieved December 8, 2019.
  13. "USPS Website Price List, Notice 123". Archived from the original on 2016-07-07. Retrieved 2016-06-25.
  14. for the 5th through 8th oz, the price is a constant 25 cent increase. The 35 cent increase starts with the 9th oz.
  15. "Stamp Price Increases 2020: USPS Stamp, Mail Rates Going Up in January?".
  16. "First-Class Mail International | USPS". www.usps.com. Retrieved 2020-08-12.
  17. "Parcel Post: Delivery of Dreams". Smithsonian libraries. Washington, D.C. Retrieved December 8, 2019.
  18. "Precious Packages—America's Parcel Post Service". National Postal Museum. Retrieved 2014-11-13.
  19. 2007 Comprehensive Statement on Postal Service Operations http://www.usps.com/strategicplanning/cs07/chpt2_007.htm
  20. Metzler, Natasha (September 30, 2010). "Rate board denies Postal Service price hike plea". Associated Press. Retrieved 2010-11-15.
  21. O'Keefe, Ed (October 22, 2010). "Postage rates may still go up". Washington Post. Retrieved 2010-11-15.
  22. Reilly, Allison (25 December 2013). "Postal Rates Going Up In January". DailyGlobe. Retrieved 2013-12-26.
  23. Laura Wagner (1 March 2016). "Stamp Prices Set To Drop 2 Cents In April, Putting USPS In Sticky Situation". National Public Radio.
  24. Isidore, Chris (April 8, 2016). "Postage prices set to go down, and the USPS isn't happy". CNN Business. Retrieved December 8, 2019.

Sources

Further reading
  • Beecher, Henry W. and Anthony S. Wawrukiewicz. U.S. Domestic Postal Rates, 1872–2011. Bellefonte, Pa.: American Philatelic Society, 2011. ISBN 9780933580787
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