The system involving Telegraph Money Orders was developed to transmit money using telegraphic communication rather than using the postal system. It involved sending a notification to a designated Telegraph Office and, at the same time, sending a telegram to the named recipient notifying them of the transfer.
Besides this recommended application of telegraph wires Mr. Todd is reported by the South Australian Register of 13 May 1861 as having suggested something more novel. He says:
It frequently occurs that persons are compelled to attend from a distance at the Supreme Court to give evidence which though, perhaps, very important, is not such as to require a very lengthened examination or severe cross-examination. I have thought that with the wires brought into the Supreme Court, the telegraph, under proper regulations, might be used in such cases, and so avoid the necessity of an expensive journey to and stay in Adelaide. The Special Magistrate for the district might attend with the witness at the nearest station, and the examination might be conducted with the same facility as with the personal attendance of the witness in the Court.
First suggestions for New South Wales:
In the Legislative Assembly on 22 September 1859, the Colonial Secretary (Mr. Cowper) noted that the Report of the Postmaster-General for 1856 contained a very long and rather elaborate paper upon the subject on the Money-Order system.
In the 1858 Annual Report, (tabled in 1859) the Postmaster-General had stated that:
"it would be impossible to carry out a money order system while the duties of the Post Office were carried on in the present building. He (Mr. Cowper) had had frequent conversations with Major Christie in reference to the desirability of introducing a money order system at the earliest possible period. Captain Martindale had for some time past been in communication with him (Mr. Cowper) for the purpose of bringing into operation a money-order system in connection with the telegraph. That system was nearly completed for transmitting by telegraph money orders not exceeding £10. Until a new building was erected, he thought a money-order system in connection with the Post Office must be deferred.
We are still unable to report the commencement of the Money Order system in connexion with the electric telegraph, which has for many months been promised to the public. All the details have been long since decided on and the only obstacle to the establishment of this most convenient mode of remittance is the want of the authority from thc Legislature, the opening of the system involving a trifling expendíture. The required amount is amongst the Estimates for this year but these have not yet been commenced and it will probably be several weeks before this item is passed".
A telegraphic money-order system, based on the plan suggested in my report of 22 October, 1858, came into force in NSW on the 2nd of July 1860. The orders are limited to 20/- in favour of the same payee: the premium being 6d. up to 10/-, and 1s. between 10/- and 20/- in addition to the minimum charge for transmission of advice message.
Money Order stations at present opened are — Sydney, Goulburn, Yass, Gundagai, Albury, Windsor, West Maitland, Newcastle, Bathurst and Kiandra. The number of money-order messages transmitted during the six months ending 31 December, 1860 was 394; and the amount taken was £2,940/ 19/ 2d. The system is said to work remarkably well and the co-operation of Victoria and South Australia has been invited with a view to the adoption of intercolonial telegraphic money orders. I should see no difficulty if Victoria concurred; or, if we had a direct line with New South Wales; and would therefore recommend it on the latter being completed.
The following announcement in the Maitland Mercury & Hunter River Advertiser of 26 June 1860 - was typical of those carried in other newspapers:
ELECTRIC TELEGRAPH - MONEY ORDER BRANCH.
Department of Public Works,
His Excellency the Governor General, with the advice of the Executive Council, has been pleased to approve of the establishment of a Money Order branch of the New South Wales Electric Telegraph Department.
On and after 1st July next, money orders can be transmitted by electric telegraph between the under-mentioned stations, and at the rates, and under the regulations following:
Stations: Sydney, Gundagai, West Maitland, Goulburn, Albury, Newcastle, Yass, Windsor, Bathurst.
- Each money order to be limited to £5.
- No person to obtain, on one day, more than two orders in favor of the same payee.
- The charge or premium to be 6d. (sixpence) for any sum not exceeding £2 (two pounds), and 1s. (one shilling) above £2 (two pounds) and not exceeding £5 (five pounds), in addition to the minimum charge for transmission of a message between any two of the above-named stations.
- All money orders will be delivered to the payees as telegrams, and the money due will be payable on demand at the telegraph offices, by cheque on the Bank of New South Wales, or other most convenient bank, should there be no local branch of the Bank of New South Wales.
- Parties transmitting money orders will be informed by telegraph (without charge), as soon as their orders have been paid. Receipts will, in all cases, be given for money deposited, and committed for money paid.
NB - It is proposed to extend these arrangements hereafter to the sister colonies, and to such other stations within New South Wales as may appear advisable.
It was not long before rates were reduced as the system was well supported in the first few months. These reductions came into effect on 17 September 1860 with the main changes being as follows:
- Money Orders to be limited to £20 in favour of the same payee on the same day.
- the charge or premium to be 6d. (sixpence) for any sum not exceeding £10 (ten pounds), and 1s. (one shilling) above £10 (ten pounds) and not exceeding £20 (twenty pounds), in addition to the minimum charge for transmission of a message between any two of the above-named stations.
Unfortunately the system did not prove able to pay its way and so, in January 1863, it was transferred to the Postal Money Order Branch. Of course, telegrams advising of payments were still sent at the rate of the minimum charge for a message, according to the wishes of the sender.
Finally, on 1 May 1875, a Post Office telegraphic money order system was introduced between the colonies of New South Wales and Victoria. Arrangements for extending the telegraphic Money Order system from NSW to South Australia and to Queensland were completed in June 1875.
The 1895 NSW Regulations for Telegraph Money Orders.
Examples of Money Order Receipt forms for New South Wales.
Carcoar to Sydney
10 December 1920.
Earliest reorded date for this form.
Receipt for the transmission of £5/10/-.
Characteristics:
- Form number 118;
- has a serrated edge at the left where the form had been torn from the stock book;
- specifies CARCOAR in the heading;
- Stores number 58392 - 1;
- Size 160 × 209 mm
Costs for NSW Colonial Money Order - see Goulburn Evening Penny Post 29 August 1893.
To Fitzroy, Vic from Deniliquin.
15 August 1949.
Earliest reorded date for this form.
Characteristics:
- Form number changed to M.O. 118;
- has a serrated edge at the left where the form had been torn from the stock book;
- specifies DENILIQUIN in the heading;
- Stores number St 8151 - 1;
- although used during the War period, the form still maintains the format for the Interim period;