The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-11-02
POSTAL MONEY ORDERS.
Some Of the Features of Auditor
Castles Report.


In his annual report to the Secretary
OF the Treasury and TO the Postmaster
General made public a few days ago.
Henry A. Castle. the Auditor for the
Postofice DcpartU cnt. discussed a num-
Der Of subjects which are Of popular in
terest. In regard 20 invalid money or
ders. Mr.. Castle says.
The First Assistant Postmaster Gen
eru reports To- this office that the amount
or domestic money orders remaining uu-
Iaiid Tor one year from the last day Of
month of issue during the fiscal year end
'a June - 1871, was SSS6.Nu5. This
amount is nearly double that of the cor
responding item for the previous year
The figures are gathered from the sdvices
and pOStmaSters monthly statements
transmitted 10 the Postotfice Department
These auylCes. under the act of January
1884. should have been sent by pOstmastcrs
10 me AudltOr- That law requires the
Auditor TO certify TO the POstma Ster Gen
eraI the amount of invalid orders out
standing. as shown by such advices. and
also requires that the sum thus certified
be turned into the Urea Sury by the Post
master General 20 be used as current re-e-
nueS by the departmut. ] have In pre-
Ceulng annual reports called attention to
the fact that this law is diSFegarded not
outstanding repeated requests that II
be complied with. Until that is done. and
a register of advices can be made up IN
TINS once. We cannot properly certify 70
the validity of claims for payments Of
money orders more than seven years old
since the laws require the destruction
each year Of all statements and guard
books pertaining thereto. Thus every
record OF money order outstanding be
yOnd that period Is destroyed. vet such
orders are constantly presented for re-
demptiOn by warrant As an accounting
oWcer cannot legally certify 10 fnan-
cial statements which he cannot verify
this office Is not I'm position 20 make such
ctrtlHcateS unless the advices Of invalid
orders are transmitted 70 the Auditor as
plainly required by law. For TIE hard
ships thereby entalled we cannot De held
responsible
During the fiscal year 81 cases Of dou-
bic payments. amounting to 81 ag9 i. were
referred To pCsunasters for correction
Speaking Of money order accounting.
Mr.. Castle says.
Attention is again called TO one par
ocular In which our accounting method
Is seriously defective. At least $15.OJJ.JJ5
mOncy-Order funds are. by the present ac-
cpunlng system. at all times uOmIuaIly IN
the hands Of pOstmasters unaCcOunted
tor- The postmaster who sells money or
derS transmits TO this office his report Of
such sales weekly. semi-mOuthIy. or
monthly. as the case may be These re-
ports are necessarily held here for d
period averaging five months before the
money orders, which constitute vouchers
verifying the amount Of the postmasters'
receipts, can be assembled from all parts
or TIE world, assorted by States towns
aud numbers, and then checked against
the report Not until all this time has
elapsed and all This work has been done
can we ascertain whether the postmaster
mas accounted for all his receipts Mean
time there IS abundant opportunity 10 the
dishonest for heavy entertainments
Whlch, IN fact. are constantly occurring.
No banking business could be carried on
successfully IN this loose manner. An
additional safeguard would consist in re-
curing each postmaster To send a daily
statement 10 this Office, showing in brief
his cash receipts from the sale Of money
orders during that day and his disposition
OF 'he same. These statements would
here be posted. and afterward verified as
soon as possible by the regular reports
sent IN While this would not be a per-
feet protection against loss, it would be a
long step IN that direction, since IL would
unqLestlOnably have a restrictive iuflu-
cnce on dishonest officials II would en-
abie thls ONCE 70 detect fraudulent va ri-
atoms between the daily statements and
subsequent fuE reports, and II would be
otherwise beneficial TO the service. A
additional force would be required TO
properly receive, enter, and verify these
statements. but the. Government. having
engaged in this business. owes TO itself
me adoption Of every possible pTecau-
The life Of money orders is discussed
by Mr.. Castle as follows:
i feel constrained to repeat recon-
mendalons submitted in previous annual
reports, that legislation be secured lin
lung the lie Of money orders to three
months from the last dav Of tha month
or issue instead Of twelve months as
now required by law This procedure
win the transmittaI Of all invalid ad-
wees 20 tue Auditor, iE obedience to pres
cnL legal requirements. would render pos.
sihle a correct and practically current
AUDIT OF pouey-Crder accounts thereby
greatly reducing the risks referred 20 i'm
me preceding paragraph. Under che form
or money orders now in use the advice is
facsimile OF the original order as is
sued. and might be used in checking
debit entries OF missing orders Since the
order has not been. and can no longer be-
presented Tor payment. unie IS the advice
IS sent 10 the Auditor. the entry Cf the
order on the debit side or a money-ortIer
statement must always remain uuveriild
Inc average life Of a money order as de-
irTmineu Dy a recent Investigation in this
bureau, is seven and One-half DAYS II il
manifest from this that no injury could
DE caused 10 the mOney-OrIier svstpr1 by-
limiting the legal life 10 three months.
~ ABOVE suggested Congress might re-
heve this Office OF one Of Its greatest ole
m'hJS or embarrassment in adjusting
InoAey order accounts by complying with
this oft-reDeatfd recommendation
or improper payment Of money orders
by Dostmasters, Mr.. Castle says:
on April 3. 1901. I reported TO the
Comptroller OF the Treasury for approval
dlsapproEal, or modification. under the
provisions OF section \ act apDroy+d J1IT,-
y. 1894 decision that the practice Gf
allowing money orders 10 be paid II Of
ices other than those on which they had
t..'tA '4lsff- htE contrary To tlr nTtEl~-
IONS OF law establishing the mOuey-orCler
system. and that vouchers issued I'm lieu
or orders thus improperly paid. by the Su-
peTlEttHdcnt OF the Money order Division
% the PoStOtICe Department. could not
De accepted as authoritative warrants for
thu disbursement of public money gr
ftruiJ allowed 10 the postmasters trans
HlilinG the same The reasons for nv
decision were stated az length and are
hcprIoTatrd lu tht printed reports OF the
DECISIONS "i Tire tomptTpilsr or the Treas
ury. July. 1900. 10 suue. 1871. volume VII
pag. s'N "a SEQ April -, 1891. The Comp
tTpller Med his decision. e0EcUrriug fully
with my opinion. thereby placing an cf-
ftctUal barrier Co che continuance. of This
pTtCtice- Tho COuptroIIorS decision laid
down two principles. stated in sna svIIa-
bus thereof. Is follows
The provisions IN The act ~ March
iN.'- which authorizes the sr!D-riltt nj ~
OF the mCnty-urd,T system To draw money
orders Tor the purpose ri cprT.gfirc errors
made bE pHSrmaSt' rs iD iS-viTr~ or paving
-u'h orders does not aGthrrize him To-
draw such orders for the purpose uf Ia
Ci4ltatlnE tho payment OF other money or
c':S by "a postmaster other than the post
master upon whom they were drawn
the various provisions r low rrfat-r-
Z" the issue and p1ymC-- 1f domestic nos
TAI money orders must Pc con ei.ta~.I ms
only by tho pustrl7sters Ur0G whom th,y
are respectively Craw-'
This decision ~ Tho Como. roller MS
at once made known tu the FrStrfira Dc
partmsut ard the Firs- Assistant Post
master General promptly issued an ORDER
Withdrawing the permission previously
given for making such payments Thus