The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1864-10-22
POST OFFICE MONEY ORDERS.
Origin and History of the
System in England.
STATISTICS OF ITS PROGRESS.
It's Introduction into the United
States,

In view Of the introduction Of the postal
money order system into the United States, it is
instructive to review the history and progress Of
the money order department Of the British Post
Office. Il must not, however, be presumed that
success similar to that which has attended the
system in the mother country will be attained
here from the very fact that It will not DO Of that
advantage to the people Of this country as It IS
there. Persons in England who desire 10 transmit
small sums by mail to distant places have no
alternative but to make use Of money orders
from there being no paper money Of less amount
than E5 (S25) while here VIC are enabled conye-
niently to send in currency and postage.stamps
combined any sum VIC wish.
In the following remarks we have calculated
the English pound sterling az five dollars, which
appTOXimatos to the gold standard.
ORION OF MONEY ORDERS.
The system originated in the requirement of q
safe and easy means Of transmitting money by
the British soldiers and sailors who were then
tghungTippoO SGib iD Asia, and preparing 10 fight
with tie French in Europe, TO their relatives I'm
different parts Of Great Britain and Ireland. To
meet this requirement three post Office clerks
under the firm of "stow Co." in 1892, started
an enterprise which has since grown into q great
postal banking establishment. This was done
with the sanction of the Postmaster General but
without any interference by him in the manage.
mont
The advantages Of the scheme were so appa-
rent that before long all classes Of citizens were
allowed 10 await themselves of it. Each of the
three partners advanced 5000 to begin the busi-
ness, and during The time they enjoyed the mono
poly of transmitting small sums-mOre than Gfty
yeau-uetted an annual profit of about $1,000
each. The fee Stow & Co. charged for transmits
sion was Sd in the pound 5crling (three and one
| bali per cent, out Of which they had to 'efray
the Salaries of clerks and the commission to
| country pOstmastcrs. In addition to this per-
Ceutuge II the amount exceeded $40, the r5mitter
| had to pay twenty five cents for Government
stamp; and in all cases he had to pay the postage
| Of his letter containing the order; 80 that with
the then high rates Of postage the cost of trans
mission averaged about five per cent. Five
guineas (about 500 was the highest amount that
could be remittcd in one order. The same SER
vice is now performed at one. tenth the former
cost, and this, too, at an en- JrmouS profit to the
Government, as will be seen below.
THE sCHEHE ADOPTED BY THE POST OFFICE.
In the course of time the British Government
| began to be alive to the advantages which would
| be derived from grating the money order system
| in the general establishment; therefore, on De-
| cember &, 1888, about year before the introduce
| ton Of penny postage, stow Co. were given
| compensation and their business became an
| official department of the post office The COM
| mission was then reduced to a fixed charge OF
| twelve cents for sums OF $40 and under, and OF
thirty-siX cents for sums OF over $40 and not eX-
ceeding S2j, beyond which amount no order was
issued
But the reduction was not sufficient TO induce
the public TO patronze money orders to any eX
| tent, for in addition 10 the commission paid, as
the orcers were issued on separate slips, thC
rCmitter was compelled to pay double postage "a
rate being then charged for each sheet), and a
tie then b gh rates the cos. of transmission wa
thereby much enhanced. This double postag
8 was soon, however, Obyiated by the orders DsinG
e | given al tie head Of sheet OF letter-paper. \
| chief clerk and two assistants were at first enabled
70 10 all The business that came to the head Office
but this business, which had yielded respecta
3 bic profit TO Stow s. Co., was done by the Govern
- | mgut at q loss.