The morning call., 1892-08-16
A POSTAL SERVICE REFORM.
The clearinghouse System to Be
Applied to Money Orders.
An Innovation That Will Be Gratifying-Its
Success in Other Cities-The Volume
of Business Transacted

The recent Eastern trip of Postmaster
Backus on tour of inspection of some of
the principal postoflices in the United
States is about to bear fruit in at least one
important postal reform in San Francisco.
The proposed innovation will greatly please
the mercantile community as well as all
who transact business with the money
order office. The reform is no less than the
introduction OF the clearinghouse system I'D
the collection Of money orders.
The system has been adopted with marked
success in New York City. Chicago, Boston
and other large cities aud has greatly
tended to pOpulaTize the money-order sys-
TEN. The Superintendent of the Money
Order Department at Washington has APP
proved the application of Postmaster
Backus for its extension 10 this city, and
negotiations are now pending with the
postal department at Washington to carry
1t into effect.
The essential feature of tn 9 clearing house
system as applied to money orders is that
one OF the two national banks in the city
already named as United States depository
IS designated to cash money orders. and this
depository IN turn passes them over in bulk
each day TO the Postmaster. All other
banks connected with the clearinghouse
turn over 10 this designated depository the
money orders that come 10 them in the
course Of business.
THE PATRONS.
BY this method the patrons of the money
order office are relieved in great measure
from the veXatious and irritating process of
Identification. All the banks necessarily
know their customers, and the fact that the
cashed orders have gone through the clear
ing-house will be accepted by the Post
master as sufficient Identification.
In other words, the new system will
greatly n tC ba anlf
OF money orders. Ii is well known that the
banklDg-houses have been very loath to
receive from their customers this species Of
exchange because of the stringent rule for
the Identification of payees. The applca-
tion Of the clearing house system eliminates
much of this form of annoyance. No such
annoyance has presented itSe If in the case
OF Wells, Fargo 81 Co.'S Express money or
ders. These the banks have readily accepted
on deposit tags.
There are two national banks in this city
which have been designated as United States
repositories. Ole is the First National and
the other the Crocker- w oolworth Bank.
The authorities at Washington will de-
termine which of these shall represent the
money order Office in the postal clearing
house system.
The reform is a step forward In postal
facilities, one of the many introduced by
Postmaster Backus during his administra-
ton, and will be welcomed by business men
as well as by the bankers.
MONEY ORDER BUSINESS
The returns of the money order busingss
at the San Francisco Office during July show
that of domestic money orders there were
Issued during that month orders aggregat-
ing S46.042. and during the same period
there were paid out Sl79.372. The foreign
orders issued amounted to SIG, 999 So. aud
paid TO S11,736 II. Exchange in postal notes
amounted to $3.50 10 issued, and S1O,l2O
paid. These figures Indicate q great de-
cline in the volume of business transacted
By the money order Office.
Another interesting circumstance in this
connection is the effect upon the money
order business of the sub-treaSury and
Pestotfice in stamping all light gold coin
which reaches those Offices in the course of
business. People do not submit willingly
TO see their money deprecated in this man
ner, anc the consequence Is that wide berth
Is given TO the officials who consider it their
duty to tut sinister brand on good money
Neither Wells, Fargo IL Co. nor the banks
resort TO this practice, and the result is
that the banks and express company have
been cutting into the PostOfiice money
order business. The clearinghouse system,
as applied 10 the money order Office, ii is
hoped. will have tendency 10 arrest. in
some degree, the falling OFF In business in
this quarter