US Postal Service asks for 20-cent stamp rate

A first-class stamp will cost 20 cents next year under a rate increase the US Postal Severice filed Monday. Postmaster General William F. Bolger said the dramatic increase -- the first for the postal service in 2 1/2 years -- is neccessary because inflation has driven up wages and fuel costs, Monitor correspondent John Yemma reports. The independent Postal Rate Commission must approve the new rate before it goes into effect. Even with the full rate increase, Mr. Bolger said, the continuation of Saturday mail service would depend on a $644 million subsidy by Congress.