sending telegraphic money orders and during the ensuing three years the privileged area was greatly extended. In 1897 the expenses were considerably reduced. In 1858 arrangements were made for the exchange of money orders with Canada and by 1862 similar agreements were decided upon with most of the other colonies, but foreign countries were not included until somewhat later and in 1880 colonial and foreign rates were harmonized. Rates were reduced in 1883, 1896, and 1903, and in the last year the inland £40 limit was agreed upon with most foreign countries and some of the colonies. Inland money orders which started to decrease in amount in 1878-79 steadily continued their downward course until 1891-92, when there was a slight recovery for a few years, but since 1903-04 the number has somewhat diminished. During the postal year ending in March, 1907, the number of inland money orders transmitted was nearly eleven millions as compared with nearly nineteen millions for the year ending March, 1879. This decrease in numbers is largely due to the lowering of the registration fee for letters, the introduction of postal notes, and the use of other means for transmitting small sums of money. The total value of inland money orders also began to diminish in 1879, but began to recover in 1886, and has since increased quite uniformly, being in 1907 nearly £38,000,000 as compared with £29,000,000 in 1879.[294] The increase in the number of postal notes has been enormous, although there was an apparent falling off in the years 1903 and 1904 due to the increased number of denominations offered for sale. For the first complete postal year after their authorization the number issued was nearly four and a half millions of the value of £2,000,000, and for the postal year 1906-07 the number was 102,000,000 of the value of nearly £41,000,000.[295] On the other hand, while inland money orders were decreasing in number, colonial and foreign orders increased in general both in number and value.[296] [294] _Rep. P. G._, 1896, pp. 28-32; 1897, pp. 10-11; 1881, app., p. 37; 1891, app., p. 53; 1901, app., p. 69; 1907, p. 74. [295] _Rep. P. G._, 1891, app., p. 59; 1901, app., p. 77; 1907, p. 84. [296] _Ibid._, 1891, app., pp. 52-53; 1892, p. 12.