Report In The House Of Representatives,

March 9, 1848

Mr. Lincoln, from the Committee on the Postoffice and Post Roads, made the following report:

The Committee on the Post-office and Post Roads, to whom was referred the resolution of the House of Representatives entitled "An Act authorizing postmasters at county seats of justice to receive subscriptions for newspapers and periodicals, to be paid through the agency of the Post-office Department, and for other purposes," beg leave to submit the following report:

The committee have reason to believe that a general wish pervades the community at large that some such facility as the proposed measure should be granted by express law, for subscribing, through the agency of the Post-office Department, to newspapers and periodicals which diffuse daily, weekly, or monthly intelligence of passing events. Compliance with this general wish is deemed to be in accordance with our republican institutions, which can be best sustained by the diffusion of knowledge and the due encouragement of a universal, national spirit of inquiry and discussion of public events through the medium of the public press. The committee, however, has not been insensible to its duty of guarding the Post-office Department against injurious sacrifices for the accomplishment of this object, whereby its ordinary efficacy might be impaired or embarrassed. It has therefore been a subject of much consideration; but it is now confidently hoped that the bill herewith submitted effectually obviates all objections which might exist with regard to a less matured proposition.

The committee learned, upon inquiry, that the Post-office Department, in view of meeting the general wish on this subject, made the experiment through one if its own internal regulations, when the new postage system went into operation on the first of July, 1845, and that it was continued until the thirtieth of September, 1847. But this experiment, for reasons hereafter stated, proved unsatisfactory, and it was discontinued by order of the Postmaster-General. As far as the committee can at present ascertain, the following seem to have been the principal grounds of dissatisfaction in this experiment:

(1) The legal responsibility of postmasters receiving newspaper subscriptions, or of their sureties, was not defined.

(2) The authority was open to all postmasters instead of being limited to those of specific offices.

(3) The consequence of this extension of authority was that, in innumerable instances, the money, without the previous knowledge or control of the officers of the department who are responsible for the good management of its finances, was deposited in offices where it was improper such funds should be placed; and the repayment was ordered, not by the financial officers, but by the postmasters, at points where it was inconvenient to the department so to disburse its funds.

(4) The inconvenience of accumulating uncertain and fluctuating sums at small offices was felt seriously in consequent overpayments to contractors on their quarterly collecting orders; and, in case of private mail routes, in litigation concerning the misapplication of such funds to the special service of supplying mails.

(5) The accumulation of such funds on draft offices could not be known to the financial clerks of the department in time to control it, and too often this rendered uncertain all their calculations of funds in hand.

(6) The orders of payment were for the most part issued upon the principal offices, such as New York, Philadelphia, Boston, Baltimore, etc., where the large offices of publishers are located, causing an illimitable and uncontrollable drain of the department funds from those points where it was essential to husband them for its own regular disbursements. In Philadelphia alone this drain averaged $5000 per quarter; and in other cities of the seaboard it was proportionate.

(7) The embarrassment of the department was increased by the illimitable, uncontrollable, and irresponsible scattering of its funds from concentrated points suitable for its distributions, to remote, unsafe, and inconvenient offices, where they could not be again made available till collected by special agents, or were transferred at considerable expense into the principal disbursing offices again.
(8) There was a vast increase of duties thrown upon the limited force before necessary to conduct the business of the department; and from the delay of obtaining vouchers impediments arose to the speedy settlement of accounts with present or retired post-masters, causing postponements which endangered the liability of sureties under the act of limitations, and causing much danger of an increase of such cases.

(9) The most responsible postmasters (at the large offices) were ordered by the least responsible (at small offices) to make payments upon their vouchers, without having the means of ascertaining whether these vouchers were genuine or forged, or if genuine, whether the signers were in or out of office, or solvent or defaulters.

(10) The transaction of this business for subscribers and publishers at the public expense, an the embarrassment, inconvenience, and delay of the department's own business occasioned by it, were not justified by any sufficient remuneration of revenue to sustain the department, as required in every other respect with regard to its agency.

The committee, in view of these objections, has been solicitous to frame a bill which would not be obnoxious to them in principle or in practical effect.

It is confidently believed that by limiting the offices for receiving subscriptions to less than one tenth of the number authorized by the experiment already tried, and designating the county seat in each county for the purpose, the control of the department will be rendered satisfactory; particularly as it will be in the power of the Auditor, who is the officer required by law to check the accounts, to approve or disapprove of the deposits, and to sanction not only the payments, but to point out the place of payment. If these payments should cause a drain on the principal offices of the seaboard, it will be compensated by the accumulation of funds at county seats, where the contractors on those routes can be paid to that extent by the department's drafts, with more local convenience to themselves than by drafts on the seaboard offices.

The legal responsibility for these deposits is defined, and the accumulation of funds at the point of deposit, and the repayment at points drawn upon, being known to and controlled by the Auditor, will not occasion any such embarrassments as were before felt; the record kept by the Auditor on the passing of the certificates through his hands will enable him to settle accounts without the delay occasioned by vouchers being withheld; all doubt or uncertainty as to the genuineness of certificates, or the propriety of their issue, will be removed by the Auditor's examination and approval; and there can be no risk of loss of funds by transmission, as the certificate will not be payable till sanctioned by the Auditor, and after his sanction the payor need not pay it unless it is presented by the publisher or his known clerk or agent.

The main principle of equivalent for the agency of the department is secured by the postage required to be paid upon the transmission of the certificates, augmenting adequately the post-office revenue.

The committee, conceiving that in this report all the difficulties of the subject have been fully and fairly stated, and that these difficulties have been obviated by the plan proposed in the accompanying bill, and believing that the measure will satisfactorily meet the wants and wishes of a very large portion of the community, beg leave to recommend its adoption.