Inflation Stamp

Postal rates go up and up

"If there is a villain in this story," said Postmaster General William F. Bolger last week, "the villain is inflation." But the victim of the tale that he told was the public. Starting next February, Americans are likely to be socked with a huge hike in postal rates, a proposed overall average of 28%. Pending approval by the independent Postal Rate Commission, the cost of a first-class stamp, 15-c- now, would go to 20-c-. Since 1952, when a letter could be mailed for 3-c-, the increase has totaled 567%, more than twice the increase in the cost of living.

Surprisingly, the increases come after a year in which the Postal Service had its first black ink since 1945, a surplus of $470 million at the end of last September. But, Bolger explained, the Postal Service already faces a projected $593 million deficit for the current year because of rising fuel prices and cost of living adjustments in employee salaries.

Under Bolger's new rate schedule, second-class postage for nationally circulated magazines and newspapers, which has rocketed more than 400% since 1970, would rise by an additional 1.9%. Third-class postage for catalogues and some bulk mail would increase by 17.7%. Bolger acknowledges that the increases may cause Americans to make less use of the mails. Said he: "To the extent that higher rates discourage people and businesses from using the mails, they invite inroads from our growing and increasingly aggressive competitors."

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