Money Order question

[Pharmjd]

Is there a difference in a Postal money order and one issued by a bank or private institution (Western Union, Walmart, etc)? It appears the postal money order have the words "Pay To" and other money orders issued have the standard "Pay to the order of". Are postal money orders lawful money if paid for with lawful money?

[David Merrill]

Is there a difference in a Postal money order and one issued by a bank or private institution (Western Union, Walmart, etc)? It appears the postal money order have the words "Pay To" and other money orders issued have the standard "Pay to the order of". Are postal money orders lawful money if paid for with lawful money?

Postal money orders are on the list of lawful money instruments with postage stamps, as I recall.

I might look for that a little later if nobody finds it ahead of me.

[Michael Joseph]

Postal money orders are on the list of lawful money instruments with postage stamps, as I recall.

I might look for that a little later if nobody finds it ahead of me.

Most money orders are negotiable instruments and thusly are subject to one's choice to demand lawful money or not. You can know this by the language "Pay to the order of" - which I like because I can assign any instrument like this by allonge without the use of a bank.

In fact a negotiable instrument might be assigned and exchanged many times prior to it hitting a bank. All one would need to do is show a chain of title - notarized of course at each exchange.

A postal money order is NOT NEGOTIABLE in terms of it being assigned to a third party. The only one who can negotiate the money order is the Payee. The PMO is made "Pay To".

I do not prefer "Pay To" language as it is too restrictive in my opinion. But to each his own.

I can purchase a PMO or an ordinary MO with Cash - so my remedy is between my two ears! What someone else does with the instrument is their business. I refuse to tamper with free will.

Regards,
MJ

[David Merrill]

Those details are quite edifying. Thank you MJ.

[allodial]

Just consider how the FRB is funded by the U.S. Department of the Treasury. From what I recall its something like, U.S. Securities (lawful money basis) are exchanged for FRNs. The FRBs hold U.S. and U.S.A. Securities in trust as a custodian. Consider the notion that when you give FRNs to the clerk at the post office, and she gives you a U.S. security: the process being reversed in plain sight (out of the clearinghouse). Consider the big stink that was made when the U.S. Postal Inspector General suggested reviving the banking powers of the U.S. post office.

Related:
The Road Ahead for Postal Financial Services (March 2015) -- U.S. Postal Service Office of the Inspector General

[David Merrill]

I want to paw your library.

[allodial]

Also, in St. Louis with their Metrolink, if you put in a $20 bill for train ticket or pass, you will get back $1 (gold-colored) coins and some loose change. Metrolink (akak Bi-State) is U.S.-Federal in nature because its a joint venture between States of Illinois and the State of Missouri. Go figure, they don't give back FRNs for change. Maybe its just simpler rather than keeping paper bill dispensers. Who knows?

[David Merrill]

I encountered a US clerk of court refusing FRN's for the first time in about two years.

[Moxie]

Today I went to the post office and bought a postal money order for $1. Before the clerk gives it to me, she stamps it with a red stamp "NOT VALID OVER $50 DOLLARS". But here https://www.usps.com/shop/money-orders.htmit says my postal money order is good for up to $500.

How to enforce? Thanks!

PS -- yes hold their feet to the fire by showing them their own rules -- this is the first time I've seen them do this. Anyone have any insight about this? Thank you

[Moxie]

Today I went to the post office and bought a postal money order for $1. Before the clerk gives it to me, she stamps it with a red stamp "NOT VALID OVER $50 DOLLARS". But here https://www.usps.com/shop/money-orders.htmit says my postal money order is good for up to $500.

How to enforce? Thanks!

PS -- yes hold their feet to the fire by showing them their own rules -- this is the first time I've seen them do this. Anyone have any insight about this? Thank you

PPS -- this was for consideration only, no plans of altering that amount. What if I wanted a postal money order for $51? Is my point, why even stamp that message at all.

[David Merrill]

I enjoy that pondering.

I think the newer red notice overrides the older. I believe the effort is because somebody purchasing a $1 Money Order might be planning to alter it to $100.

[Moxie]

I enjoy that pondering.

I think the newer red notice overrides the older. I believe the effort is because somebody purchasing a $1 Money Order might be planning to alter it to $100.

Does anyone out there have a good YouTube/Talkshoe/pdf/webpage about this topic -- pleez post, because I've looked, and it's a tough find. Thanks!

[David Merrill]

I am not sure what the issue is.

I think the Postmaster General authorized the agent/clerk to reduce the ceiling amount of the Money Order on very small money orders.

[Moxie]

I am not sure what the issue is.

I think the Postmaster General authorized the agent/clerk to reduce the ceiling amount of the Money Order on very small money orders.

The issue is -- I'm no expert on this aspect of postal money orders. LOL!

If the ceiling was reduced to $50, maybe it was because later on, someone might alter that money order to be a higher amount? But why put a limit on it? Do they not have enough cash to cover it?

[David Merrill]

The format of the USPS MO is like the linen on Treasury Paper. Before the "smart" advances people would bleach $1 bills and print them into $20 bills.