True enough, though telegraph services were significantly more expensive that sending a letter. This was also case for those early slogan cancels encouraging people to use the telephone (India had them for sure, I know).
The post office was a government-run institution back in those days - it wasn't about profit, so there was no interest in maximising the number of customers.
I think the office of posts and telegraph were under the same umbrella in those days. So not counter productive. Similar propaganda could be seen encouraging franking machines later on in history.
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