Correspondence gets more costly

Throughout December, a plain flier stood out among the cluttered bulletin boards at the post office, 206 E. Fourth St.\nIn large, bold-faced type, it advised patrons to "stock up on one-cent stamps now."\nThose who didn't might regret it, because they're now once again in demand.\nThe Postal Service's 1-cent stamp price hike goes into effect today, raising the cost of sending a letter to 34 cents. Other postal rates will go up as well, by about 5 percent on average.\nPriority mail rises from $3.20 to $3.45 for the first pound, and the first half pound of express mail jumps from $11.75 to $12.30. Flat-rate packaging goes from $3.20 to $3.95.\nLines at the Post Office Friday afternoon snaked into the lobby, as people crowded to beat the deadline.\n"What affects most customers will be the cost of mailing a letter," Bloomington postmaster Larry Jacobs said. "Historically, prices go up every two or three years."\nWhile the stamp went up a penny in 1999, it's been four years since the Postal Service last increased rates across the board. Run like a regular business, it hasn't received a single federal tax dollar since the first term of the Reagan administration.\nAlthough it's expected to break even over time, it carries a $3.5 billion deficit, built up during years of operating in the red. \n"It's just the right amount at the right time for the Postal Service to maintain universal service and lead us into the new millennium with the best performance, planning, technology and management systems," Einar V. Dyhrkopp, chairman of the Postal Services board of governors, told The Associated Press.\nThe price of a stamp has risen 32 cents since the turn of the century.\nWhile the Postal Service brought in record profits during the 1999 and 2000 fiscal years, rising fuel and wage costs led to the hike. The government agent's main competitors, Federal Express and the United Parcel Service, both raised rates last February.\n"We face the same obstacles as businesses," Jacobs said. "We are subject to increases in fuel and airline costs, and we have the largest fleet of vehicles outside the Department of Defense."\nThe rate increases were first proposed last January. The process for instituting them took the regular 10-month period. After the Postal Service gathers its financial data, it must be reviewed by several independent boards to determine if an increase is necessary.\nAs it traditionally has, the Postal Service's board of governors held off with the hike until after the busy holiday season.\nGeneric stamps will be used until the new 34-cent ones are released. The first celebrates the Chinese New Year. It features a paper-cut design of a snake adorned with traditional Chinese calligraphy.\nThe interim stamps are less elaborate, depicting old stand-bys such as the flag, the Statue of Liberty and flowers.\nMeanwhile, the demand for single cent stamps is expected to leap.\n"We have plenty of one-cent stamps," said post office retail specialist Phil Zook. "We're prepared for the change"