Bailar discusses the operations of the United States Postal Service. He explains how inflation consumed post office revenue due to the nearly two-year effort to obtain permanent postage rate approval. In the area of human resources, he discusses efficient use of personnel, the delay of a union lawsuit, and a ban on hiring. Regarding postal trends, he discusses the drop in postal volume, the impact of electronics on the post office, and the downward trend in all three classes of mail. Finally, he questions the level of service needed for mail delivery and the number of post offices considered necessary.