By the appropriation acts each year from the Act of the 22 June, 1874, a certain amount was annually appropriated to each Department for the purchase from the Post Office Department of such of these official stamps as were necessary for the use of the Department and its subordinate officers. By the 9th Section of the Act of the XLIVth Congress, Session I, Chapter 287, approved the 15th of August, 1876, it was enacted.
"That the Secretaries respectively of the Departments of State, Treasury, War, Navy and Interior and the Attorney General are authorized to make requisition upon the Postmaster General for the necessary amount of postage stamps for the use of their Departments not exceeding the amount stated in the estimates submitted to Congress, and upon presentation of proper vouchers therefore at the Treasury, the amount thereof shall be credited to the appropriation for the Post Office Department for the same fiscal year."
This was the beginning of an entire change in the method of crediting the Post Office Department for work done in carrying official correspondence.
By the Act of XLIVth Congress, Session II, Chapter 103, approved March 30, 1877, the law was modified in the following terms:
"Sec. 5. That it shall be lawful to transmit through the mail, free of postage any letters, packages or other matter relating exclusively to the business of the Government of the United States: Provided that every such letter or package to entitle it to pass free shall bear over the words "Official Business" an endorsement, showing also the name of the Department, and if from a bureau or office, the names of the Department and bureau or office, as the case may be, whence transmitted. And if any person shall make use of any such official envelope to avoid the payment of postage on his private letter, package or other matter in the mail, the person so offending shall be deemed guilty of a misdemeanor and subject to a fine of three hundred dollars, to be prosecuted in any court of competent jurisdiction.
Sec. 6. That for the purpose of carrying this act into effect it shall be the duty of each of the Executive Departments of the United States to provide for itself and its subordinate officers the necessary envelopes, and in addition to the endorsement designating the Department in which they are to be used, the penalty for the unlawful use shall be stated thereon.
Sec. 7. That Senators, Representatives and Delegates in Congress, the Secretary of the Senate and Clerk of the House of Representatives may send and receive through the mail all public documents printed by order of Congress, and the name of each Senator, Representative, Delegate, Secretary of the Senate, and Clerk of the House, shall be written thereon with the proper designation of the office he holds, and the provisions of this section shall apply to each of the persons mentioned therein until the first day of December following the expiration of their terms of office."
By this act the use of official stamps upon mail matter from the Departments, bureaus and offices was practically abolished, but official stamps continued to be used by postmasters and other subordinate officers in their mail matter to the Departments or each other on official business.