Evening star., 1898-09-27

No Competition Between the Depart
ment and the Banks.

There is practically no competition be-
tween the banks and the money order sys-
tenn of the department. said Assistant
Postmaster General Heath today. referring
TO a recent order issued by the department.
1T is true that some private corporations
issue money orders. and they offer the pub
lie good service in that respect. The bis
mess of the corporations and of the postl
money order system is confined to small
sums. 800 being the maximum of 4 pos gal
crGer and $50 of the orders issued by cor
poratiCns. The lager banks as is well
known, do not care to issue drafts FOR
small sums The average of a postal money
order is less than IS: hence, this is class
of business which is not profitable 10 banks
and is therefore not desirable In the very
small places drafts are, of course issued
by the local banks for small sums. but as u
rule our business is of an entirely different
character, and therefore we do not come
into competition with the banks.
AS to the recent modification of the
rules of the Post Office Department where
in II has authorized the payment Of orders
at the office of issue, this is merely a meth
od whereby the public may be accos.Tno-
dated and is in response to the general de-
mand In that direction. Heretofore the
methods of checking accounts have been
such that ii was not practicable to do
this, but some notifications of these meth
DDS nave been made and improved service
gained thereby, thus enabling the depart
ment TO present to the public certain ad-
vantages which may be afforded through
the use Of postal money orders. 1t is, of
course, simply matter of business The
intending remitter of small sum hnds op-
pOrtunity to purchase an order through the
post office. private corporation, or bank,
but will consult his convenience in this
Tor M VI-i1 of he
order at the place where he will be able
to purchase ii for the smallest sum and
will receive the best treatment. This is a
privilege afforded all citizens. and, OF
course. if the Post Office Department will
give the intending remitter polite attention
and good service at a cost less than is Of
the order will be procured at the post office:
otherwise. the remitter will certainly pro-
cure it elsewhere
Intentions of the Department..
THE department has no intentions what
ever Of adopting the savings bank system
as part of the money order system; GER
tainly no more than has been the case for
many years past. 1 happened to notice
yesterday in the ordinary course of busi-
ness that one person purchased five money
orders for S1uo each about TWO and one-haIf
years ago They were made payable TO
himself and he held them until a recent
date. when application was made for their
payment 1t is obvious that the money was
placed in the form of postal money orders
for safe keeping only. He was willing to
pay the department the usual fee. 81 80
and OF course IL was his privilege. as il is
the privilege of any one. to purchase all
the money orders desired and for whatever
purpose they wish. This is the practice
with theatrical people traveNng vendors
circus performers. etc, who procure such
orders as they happen to accumulate small
sums. and hold them for payment at times
when their funds are low. The people
thus make the money order system a great
savings bank, and this without any special
encouragement upon the part of the de-
Dartnent.
The fact is General Heath further re-
marked, that probably 9O per cent of the
business transacted through the money or
der system IS done with people who have
no bank accounts and rely upon the fact
that the government has provided a safe
method Of remitting small sums and place
confidence in the fact that the business
they thus intrust to the department will be
properly transacted. There Is ample room
Tor this service quite distinct and separate
from the business of the banks Hence in
my Judgment, II is not in any way a mat
ter OF competition, but in reality the money
order system is adjunct to and useful
roT the purposes Of the banks which by
the way. handle some hundreds of millions
% dollars through the operations of the
money order system"