In 1877 the Value-Payable or Cash on Delivery system was introduced, and in 1878 the Post Office undertook the insurance of letters and parcels. At first there was no limit to the amount for which an article could be insured, until a claim for the contents of a parcel insured for Rs.60,000 showed the enormous liabilities which the Department might incur under this system. Accordingly, in 1890 the limit was fixed at Rs.1000, but was raised in 1898 to Rs.2000, and the procedure was greatly simplified. The insurance fee was originally fixed at one-half per cent, which was subsequently reduced to a quarter, and in 1905 to one-eighth per cent. Previous to 1880 the money order work of the country was carried on by the Government Treasuries, and the procedure was rather cumbersome; in that year it was handed over to the Post Office, with the result that in a few months the number of money orders issued and paid quadrupled. The extent to which money order business has increased may be gauged from the fact that the value of inland money orders in 1880-81 was 45 millions, and in 1917-18 it had increased to over 617 millions of rupees. In 1870 Government Savings Banks were first established in India in connection with District Treasuries, and in 1882 permission was given to open savings bank accounts at post offices, but the management and control of the funds still remained with the Treasuries. In 1885 all savings banks at Treasuries were closed and the business was transferred entirely to the Post Office. The general development of this branch will be treated of in the chapter on Savings Banks, but, as an example of the growth of business, the figures of 1882-83 and of 1913-14 are remarkable. In 1882-83 there were 39,121 depositors with a balance of Rs.27,96,730; in 1913-14 there were 1,638,725 depositors with a balance of Rs.23,16,75,467. In 1883 combined post and telegraph offices were introduced, and it is no exaggeration to say that these are solely responsible for the extension of telegraph facilities to the smaller markets and rural tracts of India. In 1884 the sale of British postal orders was authorized, and the same year marks the introduction of Postal Life Insurance, a measure at first confined to servants of the Department but afterwards extended to all Government servants. In 1890, at the request of the military authorities, the Post Office undertook the payment of military pensioners in the Punjab. In this way the Department has grown. From being a mere agency for the carriage of correspondence and parcels in 1866, the Post Office has now become the poor man's bank; it does an enormous value-payable and money order business; it is an important insurance agency and pension paymaster, and to such an extent have postage rates been reduced in India that it would be hard to find a man who could not afford to communicate by post with his friends.