Evening star., 1913-12-06
The Postal Service.
M.-Money Orders and
Registered Mail.
By Frederic ]. Haskin.

There are more than 10000 post ofnces
in the United States where people WIN
out a checking account in panK MAY
go and buy exchange in the shape OF
postal money orders. The people aVali
themselves of this facility to the extent
of some $1,000, 900 money orders year
The system was established just half
century ago. and since then more than
a billion money orders have been issued
The amount of money annually transfer
red through this system amounts 10 aoout
5000 900, 900, with another hundred million
dollars for the foreign money order ous'-
ness.
A graphic idea Of the size OF the
money order system OF the country may
be gathered from the statement that al
though the average fee for issuing money
orders is less than 6 cents. the totai re-
ceipts of the Post Office Department from
these small fees alone amount 10 aoou.
S5OOOoOO a year. The postmasters at
third and fourth class post offices are
allowed a fee of cents for each oroer
they issue and on this basis they mane
nearly a million and half dollars last
year. :,
AS a general rule receipts exceed dis
bursements on account of money orders
issued and paid in the smaller post ohces
of the country, while in the larger Oh
fees the value of the orders reoeelhsu 10
much greater than the value OF tnose
issued, The Department never WIZ alloW
q money order to fail of payment When
offered for redemption, and yet II does
not desire to keep any conslderaoie
amount of money in the hands OF pos.-
masters for this business. 10 meet the
situation it gives to the postmaster oi !ns
New York post Office sort OF clearing
house status. PostmasterS VINO nave
many payments to make are given letters
of credit on him. within the limit OF
which they may draw for funds. Wnen
they draw he Immediately notines the
depa rtment and the appropriate book
keeping entries are made. In this way
the postmaster of every city is assured
always of sufficient funds to pay all or
ders that may come for coilection, ana
yet the department IS saved the necessity
of having large sums OF money leu op
and not working
:. X
In the international money order busl-
ness each country RENTS at frequent in
tervalS to the
Orders Issued in U. S. other coun-
on Foreign Countries. money order
union sufficient money to cover the ex-
cess of orders issued by it over the ones
drawn on 1t. AS the United states is
che home of SO many foreigners who
send money across the ocean to the kins-
people back home. the United States is
constantly issuing more orders payaoie
at European offices than European OFFICES
issue payable at American offices. The
result is that the Post Office Department
must constantly be remitting money to
Europe to cover the balance.
These remittances are made through
bills of exchange, and a total of Sl,ao.COS
week goes abroad in this way. The
Post Office Department buys the ex-
change under conditions OF heer
competition participated in by about
thirty New York banks, with the
result that it always gets most favor
able terms The discounts 1t gets on
exchange over and above the premiums
that have to be paid to countries where
the boot is on the other foot afford the
postal service a profit of nearly sJVo.Ooo a
year.
1T has been recognized for long time
that the restriction of the money order
system against payment at any other
office than that upon which 1t Is drawn
has bNen the principal handicap In ex-
tending the usefulness of the system.
This has put ii at a disadvantage as COM
pared With the banking system of the
country. and the purpose OF the depart
ment to make money order payable at
any post office will make that form or
transmitting money more popular than
ever among those who do not carry bank
accounts or who wish to transfer money
10 remote places. 1t is expected that the
present fiscal year will see this innova-
ton esta blished in the money order sys-
tenn