A large amount of coin was still sent by post, and with the intention of taking away all inducements to remit money in this way the commission was reduced in 1840 to 3d. and 6d. The number of Orders issued from 1797 to 1800 averaged 11,880 a year; in 1839, when the Post Office had taken over the business, the numbers rose to 188,000; and in the following two years after the rates were reduced the numbers were 587,000 in 1840 and 1,500,000 in 1841.

The Penny Postage reform gave a tremendous impetus to the use of Money Orders, and by the year 1853 the number had reached 5,000,000. Further reductions and adjustments of rates were made, and by 1870 the number stood at 9,750,000 Orders issued during one year; and in 1878 the highest number on record was reached, viz. 18,000,000. On sums of 10s. and under, only 1d. had been charged since 1871, and this low charge was found to be unremunerative. There was a loss on the whole business, and the rates were raised again in 1878. The introduction of Postal Orders in 1881 led to a diversion of much of the Money Order business, especially in the matter of small sums.

There are many stories in existence of the early days of the Money Order Office. All public offices have a sort of atmosphere of their own, a tradition of work and the manner of work which lingers persistently under altering conditions. When the Money Order Office came under the direct control of the Post Office it was a long time before it was able to shake off the traditions of its early history as a private concern. Those were the days before competitive examinations, and when men could be pitchforked into high positions in the Civil Service from outside without official experience. In 1841 a President was appointed to the new Money Order Office, and his claim to the post seems to have been that he lent the premises which he occupied as a timber-merchant for political purposes. These were burnt down, and as compensation for disturbance his political friends rewarded him with a position at the Post Office.

If all the stories are true this ex-timber-merchant was a remarkable man and a still more remarkable official. Hourly his bell was rung. The messenger appeared. “What did I have last?” “Half a pint of stout, sir.” “Then bring me half a pint of bitter.” Another hour passed and the same form was gone through. “What did I have last?” “Half a pint of bitter, sir.” “Then bring me half a pint of stout.”

It was said that until the Money Order Office was taken in hand seriously by the Department, the most conspicuous article of office furniture was the pewter pot. At about 11 A.M. the potman from the old “Raglan” opposite used to come over with a great tray full of pints and half-pints, and the clerks drank the health of their friends and themselves before tackling the arduous business of the day. The potman grew to consider himself a member of the Post Office staff, and he is said on one occasion to have sharply reprimanded the Secretary of the Post Office in language peculiar to his class, for not making way for the pots to pass him on the stairs. In the potman's eyes it was as big a crime as to delay the advance of his Majesty's mails.

This first President was said to be very amenable to the softening influence of a judicious present. The clerk who wanted a holiday would call in at Sweeting's and buy a brace of pheasants. Then he would put in his application for leave with the pheasants. Things were very lax indeed. One man was asked to explain his absence on a Saturday morning, and he replied: “My absence to-day was really not intended on my part. I mistook the day of the week, and thought the day was Sunday.” I do not know whether it was in finding the door of his parish church closed that he discovered his mistake.

A man absented himself from the Office during the first three days of the week, and then calmly explained on the Thursday morning that he had overslept himself; in no other way could he explain the passing of the three days.

In those days, when a new Postmaster-General had an opportunity of using his patronage, new officers used to come up from the country in batches. Three or four Cumberland men, newly appointed as clerks, arrived at the Money Order Office one morning in a farmer's cart, in which they had been driven up to town from the north. They had saved their coach fares, and were mightily proud of their achievement.

The Office was moved in 1847 from St. Martin's le Grand to an ugly and lofty building in Aldersgate Street. It was frankly stated at the time that “the building was not intended to be an ornament to the City, but only the Money Order Office.” Those who remember this unsightly building do not require the unnecessary explanation.

In 1850 a new President was appointed, and he proved to be a different man from his predecessor, and to the astonishment of his subordinates he declined pheasants and refused special leave. The Office had now grown considerably, and there were no less than 160 clerks. In 1854 a Commission, of which the late Sir Stafford Northcote was chairman, made a thorough investigation into the working of the Office, and many of the old abuses were swept away. One of the reforms which affected the public was to allow crossed Orders to be paid through banks without the usual formalities over a post office counter.