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History of United States postage rates

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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 nation's early years. In the middle of the 19th century, rates stabilized at 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 cost of a first-class stamp has been steady. The seal of the Post Office Department showed a man on a running horse, even as railroads and, later, motorized trucks and airplanes moved mail. In 1971, the Post Office became the United States Postal Service, with rates set by the Postal Regulatory Commission, with some oversight by Congress. Air mail became standard in 1975. In the 21st century, prices were segmented to match the sorting machinery used; non-standard letters required slightly higher postage.

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

Postal rates to 1847

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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. Ship fees 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 letters' rates, dates, and origins were written by hand or sometimes in combination with a handstamp device.[1]

United States Postal Service

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The Postal Reorganization Act of 1970 established the postage rates, which have been set by the Postal Regulatory Commission.

Historical rates

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United States domestic first-class & postcard rates, 1863–present (USD)[conversion 1]
Date Introduced Letters
(for first ounce)		 Packages
(for first ounce)		 Additional
(per ounce) 		Postcard rate[2] International rate (letters) Comments
July 1, 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 Wartime Emergency Rate
July 1, 1919 .02 .02 .02 .01 Dropped back by Congress
April 15, 1925 .02 .02 .02 .01 (stamped cards)
.02 (postcards)
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 .41 1.13 .17 .26 .69 (Can & Mex)
.90 (rest of world)[7]		 Shape-based postage pricing introduced; international surface rates were terminated.[7] Forever stamps introduced; different prices for letters and packages for the first time
May 12, 2008 .42 1.17 .17 .27 .72 (Can & Mex)
.94 (rest of world)[7]		 Price change announced February 11, 2008
May 11, 2009 .44 1.22 .17 .28 .75 (Canada)
.79 (Mexico)
.98 (rest of world)[7]		 Price change announced February 10, 2009
April 17, 2011 .44 1.71 (3 oz) .20 (letters)
.17 (packages)		 .29 .80 (Can & Mex)
.98 (rest of world)[7]		 [8]
January 22, 2012 .45 1.95 (3 oz) .20 (letters)
.17 (packages)		 .32 .85 (Can & Mex)
1.05 (rest of world)[7]
January 27, 2013 .46 2.07 (3 oz) .20 (letters)
.17 (packages)		 .33 1.10[7] Price change announced October 11, 2012
Canada & Mexico pay the same rate as the rest of the world
January 26, 2014 .49 2.32 (3 oz) .21 (letters)
.17 (packages)		 .34 1.15[9] Price change announced September 25, 2013[9]
May 31, 2015 .49 2.54 (3 oz) .22 (letters)
.20 (packages)		 .35 1.20[10]
April 10, 2016 .47[10] 2.54 (3 oz) .21 (letters)
.20 (packages)		 .34 1.15[10] Price change announced February 25, 2016
January 22, 2017 .49[11] 2.67 (3 oz)[12] .21 (letters)
.18 (packages) 		.34 1.15[11] Price change announced October 12, 2016
January 21, 2018 .50[13] 3.50 (4 oz)[12] .21 (letters)
.35 (packages)[14] 		.35 1.15[13] 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]
January 24, 2021[17] .55 .20 .36 1.20 Price change announced October 9, 2020
August 29, 2021[18] .58 .20 .40 1.30 USPS notice post-dated September 16, 2021[18] after effective increase date.
July 10, 2022[19] .60 .24 (letters) .44 1.40[20] Price change announced April 6, 2022
January 22, 2023[21] .63 4.75-5.25 (zone-based) .24 (letters) .48 1.45 Price change announced October 7, 2022; new non-machinable surcharge: 40 cents
July 9, 2023[22] .66 .24 (letters) .51 1.50 Price change announced April 10, 2023
January 24, 2024[23] .68 .24 (letters) .53 1.55 Price change announced October 6, 2023
July 14, 2024[24] .73 .28 (letters) .56 1.65 Price change announced April 9, 2024
  1. ^ 1 oz is 28.34 g.

Historical trend

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Actual and inflation-adjusted first-class postage rates in the U.S.

Plotting the data in the previous table yields the adjacent graph. The dark area shows the actual price of the stamp, while the light area shows the price adjusted for inflation in 2019 U.S. cents.

This plot shows that, despite the nominal rise in the cost of a first-class stamp, the adjusted cost of a stamp has stayed relatively stable. Since at least the early 1980s, the price of a stamp has closely followed the consumer price index. The large jumps in the early 1900s are because a change by a single penny was significant 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.

Historical notes

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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:[25]

"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."[25]

Initially, only some postal regulations governed packages mailed by parcel post. For example, to construct a bank in Vernal, Utah, in 1916, a Salt Lake City company ascertained that the cheapest way to send 40 short tons (36 t; 36,000 kg) of bricks to the building was by parcel post, and the company proceeded to do so. For another example, Charlotte May Pierstorff, then a 48.5-pound (22.0 kg) five-year-old, was mailed via parcel post in 1914; she survived, but the regulations were clarified to prohibit the use of parcel post for human transport.[26]

Bulk postal rates were restructured in 1996:[citation needed]

  • 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, the International Parcel Post air service was re-branded as Priority Mail International, and the Parcel Post surface service was discontinued for international destinations.[27]

Regular Air Mail service began in 1918; 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 then, all domestic First Class Mail was being dispatched by the most expeditious means, surface or air, and whether or not the Air Mail postage had been paid.[citation needed]

Additional charges for Special Delivery existed from 1885 to 2001. Today, Express Mail Overnight is the most similar service level.[citation needed]

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.[28][29]

On September 25, 2013, the USPS announced a 3-cent increase in the First Class postal rate, 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.[30]

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".[31] 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 fourth time in the agency's history) the price of a stamp decreased.[32]

Recent history of first-class increases

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The United States Postal Service proposed a price increase for Forever stamps in July 2024, raising the cost from 68 to 73 cents. This follows an increase in January 2024 and marks the sixth increase since January 2021. Despite these ongoing price hikes, the United States maintains relatively inexpensive postage compared to other developed countries. A 2024 study by the USPS Inspector General found that the U.S. had a lower stamp price than 26 out of 30 comparable countries. Additionally, the overall increase in stamp prices from June 2018 to June 2023 (26%) was significantly lower than the average increase of 55% experienced by those same countries.

A major factor driving the price hikes for first-class mail in the United States is a decline in mail volume. Since 2007, the number of mailed items has decreased by 68%. This decline is attributed to the rise of digital communication methods, such as email and social media, which have significantly reduced reliance on traditional mail services. The USPS attempts to offset these financial losses through price adjustments to first-class mail, including Forever stamps.[33]

See also

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Unions of the U.S. Postal Service:

History:

References

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  1. ^ Smoot, Frederick. "Early United States Domestic Postal Rates". TNGenWeb. Archived from the original on July 31, 2014. Retrieved June 29, 2014.
  2. ^ "Rates for Stamped Cards and Postcards". HISTORIAN, United States Postal Service. February 2019. Archived from the original on May 4, 2020. 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. ^ a b c "Rates for Stamped Cards and Postcards" (PDF). HISTORIAN, United States Postal Service. February 2019. Archived (PDF) from the original on December 8, 2019. Retrieved December 8, 2019.
  5. ^ "U.S. Domestic Postcard Rates". Smithsonian National Postal Museum. Washington, D.C. Archived from the original on December 10, 2019. 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. ^ a b c d e f g Wawrukiewicz, Anthony S.; Beecher, Henry (2014). "Updated United States International Rates, 1996 - 2014" (PDF). USPostalBulletins.com. Archived (PDF) from the original on 29 August 2022. Retrieved 29 August 2022.
  8. ^ "2011 U.S. postage rate increase". Archived from the original on December 8, 2019. Retrieved December 8, 2019. NOTE: The price for a First-Class Mail stamp did not increase in 2010, nor 2011.
  9. ^ a b "U.S. Postal Service Announces New Prices for 2014". United States Postal Service Postal News. September 25, 2013. Archived from the original on December 8, 2019. Retrieved December 8, 2019.
  10. ^ a b c "Forced Price Reduction to Worsen USPS Financial Condition by $2 Billion Per Year". United States Postal Service Postal News. February 25, 2016. Archived from the original on December 8, 2019. Retrieved December 8, 2019.
  11. ^ a b "Postal Service announces 2017 mailing services prices". United States Postal Service Postal News. Archived from the original on December 29, 2016. Retrieved January 8, 2017.
  12. ^ a b "USPS Price List: Notice 123". Archived from the original on 2020-11-02. Retrieved 2023-03-18.
  13. ^ a b "U.S. Postal Service Announces New Prices for 2018". United States Postal Service Postal News. October 6, 2017. Archived from the original on February 14, 2020. Retrieved December 8, 2019.
  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?". Newsweek. 30 December 2019. Archived from the original on 2020-09-10. Retrieved 2020-08-12.
  16. ^ "First-Class Mail International | USPS". www.usps.com. Archived from the original on 2015-06-09. Retrieved 2020-08-12.
  17. ^ "U.S. Postal Service Announces New Prices for 2021". Archived from the original on 2021-03-18. Retrieved 2021-02-20.
  18. ^ a b "U.S. Postal Service Announces New Prices for 2021". Archived from the original on 2021-09-05. Retrieved 2021-09-12.
  19. ^ "U.S. Postal Service Announces New Prices for 2022 - Newsroom - About.usps.com". about.usps.com. Archived from the original on 2022-07-04. Retrieved 2022-06-30.
  20. ^ "July 2022 Postage Price Changes". USPS. 2022-06-15. Archived from the original on 2022-07-10. Retrieved 2022-07-11.
  21. ^ "U.S. Postal Service Announces New Prices for 2023 - Newsroom - About.usps.com". about.usps.com. Archived from the original on 2023-01-05. Retrieved 2023-01-04.
  22. ^ "U.S. Postal Service Files Notice with PRC for New Mailing Services Pricing". United States Postal Service. Retrieved 9 July 2023.
  23. ^ "U.S. Postal Service Proposes New Prices for 2024 - Newsroom - About.usps.com". about.usps.com. Retrieved 2023-10-07.
  24. ^ https://about.usps.com/newsroom/national-releases/2024/0409-usps-recommends-new-prices-for-july-2024.htm [bare URL]
  25. ^ a b "Parcel Post: Delivery of Dreams". Smithsonian libraries. Washington, D.C. Archived from the original on 2020-05-14. Retrieved 2019-12-08.
  26. ^ "Precious Packages—America's Parcel Post Service". National Postal Museum. Archived from the original on 2012-10-14. Retrieved 2014-11-13.{{cite web}}: CS1 maint: unfit URL (link)
  27. ^ "2007 Comprehensive Statement on Postal Service Operations". Archived from the original on 2009-04-11. Retrieved 2009-03-30.
  28. ^ Metzler, Natasha (2010-09-30). "Rate board denies Postal Service price hike plea". Associated Press. Archived from the original on 2010-10-07. Retrieved 2010-11-15.
  29. ^ O'Keefe, Ed (2010-10-22). "Postage rates may still go up". Washington Post. Archived from the original on 2011-10-24. Retrieved 2010-11-15.
  30. ^ Reilly, Allison (2013-12-25). "Postal Rates Going Up In January". DailyGlobe. Archived from the original on 2013-12-27. Retrieved 2013-12-26.
  31. ^ Laura Wagner (1 March 2016). "Stamp Prices Set To Drop 2 Cents In April, Putting USPS In Sticky Situation". National Public Radio. Archived from the original on 20 October 2017. Retrieved 4 April 2018.
  32. ^ Isidore, Chris (2016-04-08). "Postage prices set to go down, and the USPS isn't happy". CNN Business. Archived from the original on 2019-12-08. Retrieved 2019-12-08.
  33. ^ Chappell, Bill (2024-04-12). "The Forever Stamp is forever rising in price. How does the U.S. cost compare globally?". NPR. Retrieved 2024-04-16.

Sources

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Further reading

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  • 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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