Profits of the Post Office The vicious system of transferring
the whole of the Post Office surplus to the Treasury was brought to an end in 1933. Under the new scheme, which came into operation for the year 1933-34, a fixed sum of E10,750,000 from profits is payable to the Exchequer, the balance being available for the business of the Post Office. A substantial increase in profits that year brought the balance to £1,558,000—a useful reserve which has undoubtedly facilitated the policy of development and expansion that has recently distinguished the department. Already, in the year for which the commercial accounts are now avail- able (1933-34), both business and profits were steadily increasing. The telephone service showed the greatest expansion in its surplus. The telegraph service, which for many years has been hard hit by its rival, reduced its deficit. It is almost certain that the current year will show a considerable further increase in the total surplus. It is most important that the scheme limiting the Exchequer's tax on the Post Office should be adhered to. When further temptation is removed from the Chan- cellor, there is hope that at least within a few years it will be possible to restore the penny post.
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