The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1920-03-05

chasers of money orders, many of
them persons Of small means. Bust
ness men use express concerns, banks
and other private concerns for trans
hitting money.
The postoffice department makes a
profit Of approximately $1.57 on
each person who sends the equivalent
of one British pound sterling to Eng
land. For one-pound check the de-
partment charges $4.S7 plus FIVE
cents for the check The pound now
actually is worth only about $3.50
according to prices paid in the New
York financial markets. The actual
price in New York varies from day
to day. Recently the prices ranged
from 1919, the lowest record in his
tory, to $3.50.
The present rate of $4.S7 charged
by the postoffice department was
fixed in 1880. No change has been
made in it since, although the British
pound has been worth less than that
since soon after August, 1914, when
England entered the war;
The postoffice rates for money or
ders to France and Italy also are pro-
portionately far above the actual
market value of the franc and lire.
Postmaster General Burleson has
made no attempt to open negotia-
tons to alter the rate on England,
SO far as can be learned. The rate
is fixed by treaty, called a postal
convention, entered into between the
British and United States postal de-
partments. Under United States
law, the postmaster-general may pro-
pose to open negotiations to change
the rate at any time on his own re-
sponsibility.
There is every reason why Eng
land, France and Italy should wish
to alter the rate, officials said here
today, although it no doubt would be
blow to British pride to take such
formal notice of the depreciation of
the value of the pound sterling. All
three countries stand to lose millions
in issuing postal orders to their cit
liens to send to America. The Brit
ish postoffice, however, takes up the
loss by charging large fee for is
suing the check.
Express companies now are taking
most of the business from the post
office departments of all four count
rles. American express companies
have been selling checks for pound
sterling for about $3.50. They
make no charge whatever for the
service of writing the check. The
United States postoffice, however,
makes charge of five cents for this
service in addition to the profit it
makes as result of it's high ex-
change rate.
To the American resident who
wishes to pay an obligation of two
pounds in London, the situation
works like this: He goes to the near
est postoffice and buys a check for
two British pounds which he may
mail to England. It is payable at
any English postoffice for two
pounds. At the United States post
Office, however, the American pur-
chaser pays in 1914 to cover the Or
der plus ten cents for the check. At
the express company, he may get
the check for nothing and needs only
81 to cover it.
The United States postoffice de-
partment takes the 1884 and need
spend only about $3.50 for the two
pounds sterling which it must place
at the disposal of the British post
office which pays the check. The
profit to the postoffice, therefore,
to 1924 for this transac-
ton alone.
Approximately 100000 persons
sent postoffice orders to France, Eng
land and Italy last year.