A-38317, SEPTEMBER 3, 1931, 11 COMP. GEN. 101

A-38317: Sep 3, 1931

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POSTAL MONEY ORDERS - STAMPED INDORSEMENTS THE ACCEPTANCE OF A STAMPED INDORSEMENT ON POSTAL MONEY ORDERS INSTEAD OF INDORSEMENT BY SIGNATURES IN CASES IN WHICH THE MONEY ORDERS ARE MADE PAYABLE TO BUSINESS HOUSES. IS AUTHORIZED AND THERE IS NO OBJECTION FROM AN AUDITING STANDPOINT WHETHER THE INDORSEMENT APPEARS ON THE FACE OF THE MONEY ORDER IN THE SPACE PROVIDED THEREFOR. OR IN CASES WHERE THE RUBBER STAMP IS TOO LARGE FOR PLACING IN SUCH SPACE. IN SOME INSTANCES THE STAMP IS SMALL ENOUGH FOR IT TO APPEAR ON THE FACE OF THE ORDER UNDER THE WORDS "RECEIVED PAYMENT. " BUT IN MOST CASES THE IMPRESSION IS SO LARGE IT NECESSARILY HAS TO BE PLACED ON THE BACK. A LETTER WAS RECENTLY RECEIVED FROM THE POSTMASTER AT SAINT LOUIS.

A-38317, SEPTEMBER 3, 1931, 11 COMP. GEN. 101

POSTAL MONEY ORDERS - STAMPED INDORSEMENTS THE ACCEPTANCE OF A STAMPED INDORSEMENT ON POSTAL MONEY ORDERS INSTEAD OF INDORSEMENT BY SIGNATURES IN CASES IN WHICH THE MONEY ORDERS ARE MADE PAYABLE TO BUSINESS HOUSES, SOCIETIES, ETC., IS AUTHORIZED AND THERE IS NO OBJECTION FROM AN AUDITING STANDPOINT WHETHER THE INDORSEMENT APPEARS ON THE FACE OF THE MONEY ORDER IN THE SPACE PROVIDED THEREFOR, OR IN CASES WHERE THE RUBBER STAMP IS TOO LARGE FOR PLACING IN SUCH SPACE, ON THE BACK OF THE MONEY ORDER.

COMPTROLLER GENERAL MCCARL TO THE POSTMASTER GENERAL, SEPTEMBER 3, 1931:

THERE HAS BEEN RECEIVED A LETTER DATED AUGUST 25, 1931, FROM THE THIRD ASSISTANT POSTMASTER GENERAL, AS FOLLOWS:

MECHANICAL INDORSEMENT OF CHECKS AND OTHER BUSINESS PAPER HAS PROMPTED REQUESTS THAT VARIOUS FIRMS BE PERMITTED TO INDORSE MONEY ORDERS IN THE SAME MANNER. IN SOME INSTANCES THE STAMP IS SMALL ENOUGH FOR IT TO APPEAR ON THE FACE OF THE ORDER UNDER THE WORDS "RECEIVED PAYMENT," BUT IN MOST CASES THE IMPRESSION IS SO LARGE IT NECESSARILY HAS TO BE PLACED ON THE BACK.

A LETTER WAS RECENTLY RECEIVED FROM THE POSTMASTER AT SAINT LOUIS, MO., A COPY OF WHICH IS INCLOSED, WHICH INDICATES THAT THE STAMP INDORSEMENT AS REPRESENTED BY THE CHECK INDORSING MACHINE WILL SOON BECOME VERY COMMON. IF FROM THE AUDITING VIEWPOINT THERE IS NO OBJECTION TO THE INDORSEMENT IN THE FORM OF A STAMP SIGNATURE APPEARING ON THE BANK OF A MONEY ORDER INSTEAD OF THE FACE, THIS OFFICE CONTEMPLATES INSTRUCTING THE POSTMASTER AT SAINT LOUIS TO ACCEPT SUCH STAMP INDORSEMENTS FROM FIRMS WHEN PAID THROUGH BANKS IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH 22 OF SECTION 1108, POSTAL LAWS AND REGULATIONS. THE IMPRESSION OF THE STAMP FURNISHED BY THE POSTMASTER AT SAINT LOUIS IS ALSO ATTACHED FOR YOUR INFORMATION. STATEMENT OF THE ATTITUDE OF YOUR OFFICE AT AN EARLY DATE WILL BE APPRECIATED.

SECTION 1108, PARAGRAPH 22, OF THE POSTAL LAWS AND REGULATIONS PROVIDES:

THE USE OF A STAMP FOR SIGNATURE IN PLACE OF WRITTEN SIGNATURE OF PAYEE OR AGENT OF PAYEE IN RECEIPTS ON MONEY ORDERS DRAWN IN FAVOR OF A BUSINESS HOUSE, SOCIETY, CORPORATION, OR INDIVIDUAL RECEIVING REMITTANCES LARGELY IN THAT FORM IS HEREBY AUTHORIZED, PROVIDED ORDERS SO RECEIPTED ARE PRESENTED FOR PAYMENT ONLY THROUGH A NATIONAL OR STATE BANK LOCATED IN THE CITY OR TOWN ON WHICH THEY ARE DRAWN, AND WHEN SUCH BANKS EXPRESSLY GUARANTEE THE SIGNATURE BY RUBBER STAMP OR OTHER INDORSEMENT ON THE BACK OF THE ORDERS.

IN VIEW OF THESE SPECIFIC PROVISIONS OF THE REGULATIONS AUTHORIZING THE ACCEPTANCE OF A STAMPED INDORSEMENT ON POSTAL MONEY ORDERS INSTEAD OF INDORSEMENT BY SIGNATURES IN CASES IN WHICH THE MONEY ORDERS ARE MADE PAYABLE TO BUSINESS HOUSES, SOCIETIES, ETC., THERE APPEARS NO OBJECTION FROM AN AUDITING STANDPOINT WHETHER THE INDORSEMENT APPEARS ON THE FACE OF THE MONEY ORDER IN THE SPACE PROVIDED THEREFOR OR IN CASES WHERE THE RUBBER STAMP IS TOO LARGE FOR PLACING IN SUCH SPACE, FOR A STAMPING OF THE INDORSEMENT ON THE BACK OF THE MONEY ORDER. ACCORDINGLY, YOU ARE ADVISED THAT THIS OFFICE WILL INTERPOSE NO OBJECTION TO YOUR AUTHORIZING THE POSTMASTER AT ST. LOUIS, MO., TO ACCEPT THE STAMPED INDORSEMENT AS PROPOSED BY THE LACLEDE GAS CO. ON THE REVERSE OF MONEY ORDERS PAYABLE TO THAT COMPANY.