business support, information and advice

The Birth of Cheap Communication

Business Strategy – Would you pay a full day’s earnings just to receive an e-mail message from me? On those terms, I bet you wouldn’t welcome hearing from me very often.

The Birth of Cheap Communication, myhusbandstolemyblog.com

http://myhusbandstolemyblog.com/

In England in 1830, postage for letters was calculated not only by the number of sheets of paper but also by the number of miles traversed, and the recipient was the one who had to pay. For a person of ordinary means, a letter of middling length could come to about a day’s wages, a fearsome cost for the unfortunate household that received a letter.

But a decade or so later, when Britain and the United States introduced cheap, flat postal rates, without regard to the number of sheets or distance traveled, correspondents enjoyed something like our unmetered broadband today. Communication became more frequent, and ties were strengthened among families and friends. But cheap rates also led to junk mail and postal scams.

In Victorian London, though service wasn’t 24/7, it was close to 12/6. Home delivery routes would go by every house 12 times a day — yes, 12. In 1889, for example, the first delivery began about 7:30 a.m. and the last one at about 7:30 p.m. In major cities like Birmingham by the end of the century, home routes were run six times a day.

“In London, people complained if a letter didn’t arrive in a couple of hours,” said Catherine J. Golden, a professor of English at Skidmore College and author of “Posting It: The Victorian Revolution in Letter Writing” (2009).

And, not unlike us, most Victorian letter writers seemed more concerned about getting a rapid response than a long one. “Return of post” was an often-used phrase, requesting an immediate response, in time for the next scheduled delivery that day.

As any English major could tell you, the literary output of eminent Victorians was prodigious. Anthony Trollope, for example, wrote dozens of novels while working for the British post office, using the Victorian equivalent of a laptop computer: a portable writing desk. For his books, he didn’t stint on words: a modern reprint of “He Knew He Was Right,” with small type, runs 930 pages. But Ms. Golden said his letters tended to be brief and businesslike.

David M. Henkin, a history professor at the University of California, Berkeley, says that there has been “a distorted impression of how articulate or thoughtful 19th-century letter writers were — both American and British.”

“The historical letters we encounter were often written by famous, articulate people,” he added, “preserved by their recipients and selected for publication.”

When researching letters written by not-so-famous Americans, Mr. Henkin was struck by writing that was “prosaic, not poetic.”

In the early 1800s, before the postal reforms, Americans often sent letters that weren’t letters at all, but newspapers they had received in the mail and then resent to distant friends and family. Postal rates favored the practice, as newspapers could be remailed in their entirety for about what a single-sheet letter would cost — and the sender was spared the obligation of writing an actual letter.

In 1840, The New Orleans Picayune tried to persuade its subscribers to buy gift subscriptions instead of remailing their own copies of the paper, gently scolding that when “you send your friend all the news in a printed journal you have a very fair excuse for being lazy with your pen.” (Online readers should feel perfectly free to send this column to friends.) Read more »

Fed Rate Move Sends Dollar Higher

Business Strategy — The Federal Reserve’s decision to raise the interest rate it charges on short-term loans to banks reverberated in the financial markets Friday, sending overseas stock indexes lower and giving fresh momentum to a recent rise in the dollar.

Fed Rate Move Sends Dollar Higher, myhusbandstolemyblog.com

http://myhusbandstolemyblog.com/

The Fed took the move to normalize lending after holding interest rates to extraordinary lows for more than a year to prop up the financial system. But the decision, announced after the close of equities markets in New York, sent Asian shares lower, with the Nikkei 225 index in Tokyo dropping nearly 2 percent, and both the Kospi index in Seoul and the Hong Kong’s Hang Seng indexes showing similar declines.

The reaction in Europe, however, was much more muted, with the major indexes in Frankfurt, London and Paris regaining lost ground in afternoon trading. Shares in Europe turned positive after a report from Washington that indicated only a slight increase in consumer prices in January. In fact, excluding food and fuel costs, prices actually fell 0.1 percent — the first decrease since 1982. Wall Street, which has gained more than 2 percent for the week, is also expected to open slightly lower.

The move also helped propel the dollar’s recent rise even further, reaching $1.35 to the euro, its strongest level against that currency in nine months.

While the central bank had signaled its intentions to take such a step, the timing was a surprise. The announcement was made in a carefully worded statement that emphasized that the Fed was not yet ready to begin a broad tightening of credit that would affect businesses and consumers as they struggle to recover from the economic crisis.

But while the move will not directly affect home mortgage, credit card or auto loan rates, it was a clear sign to the markets, politicians in Washington and the country as a whole that the era of extraordinarily cheap money necessitated by the crisis was drawing gradually to a close.

The Fed’s board of governors raised the discount rate on loans made directly to banks by a quarter of a percentage point, to 0.75 percent from 0.50 percent, effective Friday. Read more »

Page 5 of 21« First...«34567»1020...Last »