South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-03-01
HIGH EXCHANGE
NETS POSTOFFICE
ENORMOUS PROFIT
Government Makes SI.57 on
Each Pound Sterling Sent
to England.

e WASHINGTON. Feb. 2g.-An
overcharge or approximately 30
per cent, now Is being levied against
persons who buy United States post
AZ money orders 90 send money 20
England. France and italy.
The ovcrcharge will amount TO
approximately 5000. 900 for the
present fiscal year. IL was indicated
today by pOstofice department rec
ords. This is borne directly by per
sons who use the postofice de-
partment 20 transmit cash abroad.
Since 1912 the postofice depart
meut has averaged "a profit of ap-
pr0umately $1,000. 900 on its for
eign postal money transactions. re-
ports from the pockets Of purchasers
OF money orders. many of them. per
sons OF small means. Business men
use express concerns. banks and
other private concerns for trans
hitting money.
Big Profits on Pound.
The postohice department now
makes a profit Of approximately
s1.57 on each person who sends the
equivalent Of one British pound
sterling 20 England. For a one
pound check the department
charges S487 plus cents for the
check The pound now actually is
worth only about S3.3O according to
prices paid In the Neva York finan-
cial markets. The actual price in
New York varies from day 20 day.
Recently the prices have ranged
from sap the lowest record i'm
history. 10 $3.50.
The present rate OF S4.S7 charged
by the postofiice department was
fixed In 1880. No change has been
made in & since. although the
British pound has been worth less
than that since soon after August
1914. when England entered the
war
The post office rates for money
orders 10 France and Italy also are
proportionately far above the actual
market value Of the franc and Ira.
No Move To Alter Rate.
Postmaster General Burleson has
made no attempt to open negotia-
tions TO alter the rate on England.
30 far as can be learned. The rate
Is fixed by a treaty. called a postal
convention. entered into between
the British and United States postal
departments. Under u. s. law, the
postmaster general may propose TO
open negotiations to change the
rate at any time on his own respon-
sibii'ty.
Blow 20 British Pride.
There is every reason why Eng
land. France and Italy should wish
to alter the rate, officials said here
today. although il no doubt would
be a blow 70 British pride 10 take
such formal notice of the deprecia-
tion OF the value Of the pound ster-
ling. All these countries stand 20
lose millions I'm issuing postal or
ders 10 their citizens 10 send 70
America. The British postoftice
however. takes up the loss by charfi-
ing a large fee for issuing the check.
Express companies now are TAX
ing most Of the business from the
postOffice departments Of all four
countries. American express COM
panies have been selling checks for
pound sterling for about $3.50.
They make no charge whatever for
IN service OF writing the check The
United states postoffice. however,
makes charge Of . cents for this
service in addition 10 the profit IL
makes as a result OF its high eX-
change rate.
How IL Works.
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 II is payable at
any English postotiice for two
pounds At the T. :. postofhce,
however. the American purchaser
pays in S9.74 10 cover the order plus
10 cents FOR the check. At the eN-
press company. ne may get the
CHECK for nothing and need pay
only g. 70 cover t.
The L S. postoffice department
takes the 3e.S4 and need spend only
about $3.50 for the two pound ster-
ling which it must place az the dis
posal or the British postofiCe which
pays the check. The profit 90 the
post Office therefore amounts to
sS2l FOR this transaction alone
Approximately 100000 persons
sent postofice orders 20 France.
England and Italy last year.
Only a man could have classed
nee powder as a luxury