The following comes from the introduction to the Precanceled Envelopes of the United States, 3rd Edition, David W. Smith, managing editor.
A Short History Of Precanceled Envelopes
United States envelopes and wrappers were locally precanceled for many years before government precanceled envelopes were issued in the latter part of 1928. The status of some very early cancels is in question; however a few unquestioned envelopes and wrappers appeared in the late 1860's and 1870's. As their popularity increased, by the late 1920's well over 100 towns were using or had used precanceled envelopes or wrappers. Their usage had risen to the point that the Post Office Department decided to provide precanceled envelopes for any town that needed them.
An order for the issuance of envelopes precanceled by the envelope contractor at time of manufacture dated August 7, 1928 appeared in the August 10, 1928 Postal Bulletin. The envelopes were to be provided for mailing under Section 435 1/2 of the Postal Laws and Regulations. One cent envelopes (Die A) were issued with gummed flaps in No. 5, No. 8, and No. 13 sizes in white, blue, and later amber papers. The minimum order was 500 envelopes or multiples thereof, to be sold only to holders of precancel permits. The first issues of precanceled envelopes were found with the No. 26 or No. 27 watermarks which were used in the 1925-28 watermark period.
To be continued...
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