Evening star., 1886-09-04
THE POSTAL NOTES.
How They Are Affected by the Reduced
MOney-Order Rates.

How They Are Affected by the Reduced
MOney-Order Rates.
SOME DIFFERENCE OF OPINION REGARDING
THEIR UTILITY-MoNEY ORDERS SAFER
POSTAL NOTES ACCEPTED AT THE BANKS-
THE USE OF THE NOTES STEADILY INCREAs-
ING.
'The reduction in the money.oEder rates to
nve cents for sums not less than $5,'' remarked
superintendent Merrill, of the money order Of
nee OF the city post Office to STAR reporter
this morning. has had the effect Of reducing
somewhat the sales of the postal notes." The
reporter had asked in regard to the postal notes
and whether they were proving to be public
convenience. 'Of course" continued Mr.. Mer-
rill, the postal notes could only be issued in
sums less than S5, but many have been in the
habit OF dividing up larger amounts and using
two or more postal notes, and also sending
smaller amounts instead OF waiting until the
money due had increased. Independent of
this reduction, however, In the money-order
rates, the postal notes were
NOT GIVING SATISFACTION,
the main reason being that they give no secur-
1ty. You might as well inclose the money in
the envelopes or send postage stamps. II the
letter Is lost or opened, or ii in any way the
postal note gets into the hands Of an outside
party, it can be cashed at the post Office, for
there Is no way of determining whether the
person presenting the note for payment is the
proper person or not. Here always advise
people, when they ask me, to use the money
safer. But a great many T persons s think that as Is
they are ali right. a At this OH oes we issue
postal notes daily, and, perhaps, cash two or
three hundred, but the business has fallen away.
think that
THE NOTES ARE A FAILURE,
q ~ vp1,f f1o fI,n,yx, ixt,%
for transmitting through the mails sums less
than one dollar I don't think it is safe to use
them for larger amounts. / think that the
money order rate should be reduced to three
cents, cenas, ana then the person sending money is
G fbe for it, # makes no differ,
II good. The government, however, does not
make good a lost postal note, and we have had
some complaint on this score"
THE BANKS AND THE POSTAL NOTES.
1t was found upon inquiry that the banks re-
ceive these notes upon deposit, req uiring,
however, that they be endorsed by the person
depositing them. They receive, however, but a
small amount, as they are not used very much
by the merchants in this city.
INCREASED SALE OF THE NOTES.
MIR. Cooley, who is acting in the absence
Dr. Macdonald, the superintendent of the
money order system, was interviewed by a re-
porter on this subject. He said, "The postal
AoSOs diC luCISdSluS III LQelr sales throughout
the country, and Ii this be taken as a criterion
they are gaining in popularity. It should be
understood that these notes were not intro
duced because some one person or the depart
ment had pet theory to carry out, but it was
III pursuance of what seemed to be 4 general
demand from all parts OF the country for some
the mails without being compelled to use
postage stamps or money. This demand in
Greasec when the shinpasters
methods In vogue in other countries these
postal notes were devised, and it seemed that
in tney nse ead IN aoEantage over the postal notes
the latter were only for fixed sums-shillinxs
ana naif pence-ranging from one shilling to
broken SUM, they would be obliged to send
stamps In addition to the postal note. Under
Tue present system any sum from one cent 10
$4.90 can be sent through the mails, and
ole piece OF paper can be used for any one of
these amounts. Since September Sd, 1883,
when the notes were first issued, the number
useo mas steadily increased. For the year end
ing June ~, 1885, the number issued was five
millions, which was an increase over the ten
month OF the previous year OF 144a per cent.
Inc amount OF the sales for the pasL year has
not yet been ascertaineo, but there Is every
reason TO believe that the sales will show an
increase: Instead OF interfering with the money
oroers, tney nave taken an entirely new field.
and
BOTH SYSTEMS WORK WELL TOGETHER
and there is evidently q need for both
Then again" continued Mr.. Cooley "the sys-
ecAA AoS WOIAeO SmOOtQly, ana We nave re-
ceived no more complaints in regard to those
notes than we do in regard to the money orders
and the other branches of the service. The
postmasters at first did not understand the
system and a very common error was TO punch
out the wrong numbers, mistakes which of
course had to be corrected by the department.
Now that they have become familiar
with the notes such mistakes are less
frequent. In several cities these notes, by ar
rangement, are sent by the banks receiving
the,a to the clearing house, where they are
cashed by the government, and a settlement is
effected each day. In large cities, especially In
the west, where the character of the business is
such such that large numbers OF these notes are re-
ce1ved. the merchants simply deposit the postal
notes. along with their cash and checks. In the
bank and are credited with the cash. In this
way they are no more trouble than the actual
cash: The risk of their falling into improper
hands Is not very great, and we have no more
complaints on this score than in our other
branches. II there is anything suspicious in
the person presenting such a note the payment
Is refused until the postmaster is satisfied that
1t Is all right may say, in conclusion, that if
the system is not useful to the public or can be
amended In any way, the department has no
objection to adopting necessary measures"