Exhibit (12)
                                                                    ------------

                               Pitney Bowes Inc.
              Computation of Ratio of Earnings to Fixed Charges (1)
              -----------------------------------------------------

(Dollars in thousands)

                                                 Three Months Ended March 31,
                                                 ----------------------------
                                                        1998             1997
                                                 -----------       ----------

                                                                    
Income before income taxes.................       $  197,997       $  183,635

Add:
  Interest expense.........................           47,899           51,905
  Portion of rents
    representative of the
    interest factor........................           10,307           11,129
  Amortization of capitalized
    interest...............................              243              243
  Minority interest
    in the income of
    subsidiary with
    fixed charges..........................            3,059            1,966
                                                 -----------       ----------

Income as adjusted.........................      $   259,505       $  248,878
                                                 ===========       ==========

Fixed charges:
  Interest expense.........................      $    47,899       $   51,905
  Portion of rents
    representative of the
    interest factor........................           10,307           11,129
  Minority interest, excluding
    taxes, in the income of
    subsidiary with fixed
    charges................................            4,670            3,011
                                                 -----------       ----------

                                                 $    62,876       $   66,045
                                                 ===========       ==========

Ratio of earnings to fixed
  charges..................................             4.13             3.77
                                                 ===========       ==========

Ratio of earnings to fixed
     charges excluding minority
     interest..............................             4.41             3.92
                                                 ===========       ==========

<FN>
(1)   The  computation  of the  ratio  of  earnings  to fixed  charges  has been
      computed  by  dividing  income  before  income  taxes as adjusted by fixed
      charges.  Included in fixed charges is one-third of rental  expense as the
      representative portion of interest.
</FN>