The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1909-02-04

! ness to the present well established
department of the Government. is
| not based upon what is known as
double entry system OF bookkeeping,
but upon the single entry system.
This plan was adopted for the reason
that your commissioner was ac-
guainted with the single entry book
keeping and was not acquainted
with the double entry system, and
he desired the use of q system that
he was thoroughly familiar with,
could keep many Of the books him
self and could from time to time
check all of the books as has been
done during the entire ineumbency
in office The single entry system
does not admit o., the trial balance
and the like which he understands
the double entry system does, and
which the committees expert ac-
countant thought would be an i'm
provempnt upon the present system.
Ii your committee desires that a
system of double entry book-Seep ng
shall be inaugurated, your Com
missioner will be very glad to do 50
as soon as the LEGISLATURE shall pro-
vide sufficient compensation for the
discharge of this work. The present
allowance is $3.50. and is totally in
adequate for the employment OF per-
SONS competent to perform the neces-
sary services. Your Commissioner
has had no difficulty whatever in
making his monthly balances and in
L. hnI
them in paying over to the State
Treasurer the funds to which the
State was entitled which balances
have been checked by the auditing
committee and compared with the
Treasurer books. The committee
especially criticises this office for not
Keeping what is called a cash book!
There is kept in this office, what |
call n day book, in which is entered
every item of cash received by the In
surance Commissioner, in which the
State has any interest whatever.
From this dav book the items are
transferred to the several ledger ac-
counts, and according to this day
book the amounts received are de-
posted in bank TO the credit Of
james K. Young, Insurance Com
missioner, and the bank account book
constitutes an accurate record of all
cash transactions simply kept,
READILY checked and easily under
stood.
There Are minor criticisms made
by the committee as to certain en-
tries in the hooks which | shall be
glad to explain to the committee
when they examine the books. There
is nothing wrong in any of them.
and | shall take pleasure in exhibit
ing the books whenever calle upon.
SECURITIES.
The commit Tee reports that section
47S4 of the Revi~alrequiringa a record
to be kept of the deposits by in
snranre companies of securities with
the Commissioner to protect the re-
serve upon registered policies has not
been complied with. aud declares the
only record kept is by a pencil memo
randa in IL book kept by the Insu
rance Commissioner in his vest
pocket. The records to these securi-
ties are kept in the following manner:
Az an insurance company makes II
deposit with the Insurance Commits
sioner it furnishes him with a dupli-
cate record of security, one of which
is rpceipted by the commissioner and
returned to the company, and the
other is kept by the commissioner in
his safe in his office. The securities
are properly Tabled, bundled and de-
posted in safety boxes in the vault
of bank i'll the city of Raleigh, the
Commissioner having no vault or
safety box in his department.. Your
Commissioner i'll addition to these
records. has been keeling a record in a
book 4X7 inches, containing $50
pages of good paper and durably
bound. This size book has BEEN
adopted, because the Commissioner
desirable to keep it locked in the
vault in his safe and larger one
could not be kept in that wav. Many
of the entries in this book are made
in the vault, where the actual securi
ties are kept and checked up and can
not we'll be made in the office away
from the securities. When the com
mittee objected to this book as a re
cord of the securities they were tolC
by the Commissioner that if they
would make a list of the securities
while they were being examined, which
was done and this list upon bein: