From the Super Mario Wiki, the Mario encyclopedia
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The Post Office is an area in Paper Mario located east of Peach's Castle in Toad Town. Parakarry and the Postmaster work here. Mario and his party can come here to read mail that was posted during the course of the chapter. The mail received is only for Mario's party, while mail for Mario himself is delivered to his house and can be found by his bed.
The mailbag in this location is stolen during Chapter 4 of Paper Mario, when the Shy Guys invade Toad Town. After it is stolen, Mario will be unable to read the letters here. Retrieving the mailbag from Shy Guy's Toy Box and returning it here entitles Mario to a Star Piece as a reward and makes the mails available for reading again.
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