The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1916-07-07
Caring For the States Money.

the 400 farmers having loans, all
the independent school districts from
which the state has purchased bonds,
everyone of the 5000 to 5000 pur-
chasers of state land, and a few
others deposit direct with the state
treasurer. This brings the office into
direct contact with over 10000 de-
spositors from all parts Of the state.
Such an unusual number of accounts
made it necessary to systematic the
methods of the Office and reduce the
work of handling the business, es-
pecially the mortgages, school bonds
and certificates of sale to a minimum.
ITO meet this necessity, q loose-leaf
book was worked out that gives all
collections, the date, the payee's
name, number of the loan, the school
district or certificate number,
whether principal or interest, or
both, the endowment fund to which
Neutrality-suspicious. mortgages, bonds
or certificates. It gives the amount
invested at any time from any Of
these endowment funds the same as
the general ledger gives the balance
at a glance at any time in any Of
the various state funds, and rs a
banks b%ookkeeper can tell the bal
ance to the credit of any customer.
No calling or profession has de-
veloped a more efficient system of
accounting than has the banking
business and to my employment for
a number of years in this line Of
work, / owe, in a great measure, the
ideas employed in re-adjusting the
system and changing the methods
of handling the work of the treas
urer's office. 1t affords me no little
satisfaction to be able to state that
the office can now render quickly
at any time, as accurate an account
ing as can be given by any bank.
New and up-to-date books have been
installed which are balanced each
day, and a detailed report showing
all transactions and balances, is made
to the state auditor. No moneys are
receipted for in the t~reasurer's Of
fee, except when accompanied by a
certificate issued by the auditor
authorizing its acceptance and show
ing full amounts, which gives him a
check on all receipts. And since all
money paid out is on warrants is
sued by the auditor and stamped
paid" when returned to him each
day by the treasurer's office with the
report showing amounts received and
paid out, one can readily see where
it gives a complete check of each
days business. Our system requires
also that the bookkeeper and the
deputy check against each other to
prove their balances. The reports to
the auditor are made in duplicate;
one copy for his files and the other
one to be returned to the t~reasurer's
office after being verified and signed
by the auditor.
]. is also necessary for the treas
iurer to keep a bank bond register
which shows the amount of security,
the kind, etc., that each of the $50
banks has filed with the state for the
protection of its deposit. This in
formation is used in our bank bal
ance book also where we keep the
capital stock, the amount of security
and the maximum deposit possible
under the security in addition to the
daily balance of each depository
bank. The law limits the deposit
of any bank to IS per cent of it's
capital stock and 80 per cent of the
security. Thus, a bank might have
it's limit under the IA per cent clause
and not have the limit under the Sc
curity clause. For instance, a bank
with a capital stock of $4,000 could
have $4,000 security filed and under
the law, the maximum deposit would
be rs per cent of $37,5O0. While
taking the limit under the security
clause alone, it would be entitled
to a deposit of 80 per cent or $45,-
900, so that it is necessary to keep
both records at hand.
The new depository law allows a
or below the average for all deposit
tory banks. We therefore, have what
we designate as the active and mac
tive banks. The inactive banks are
all banks outside of Boise and in
Guiding the Boise Title & Trust COM
pany, of Boise, on which we do not
either check or deposit daily and
which are all kept on IN equal per-
centage basis of deposit proportion
ate to the amount of security they
have on file. For example, a bank
having $4,000 of security filed,
would on the present percentage of
SO per cent have a deposit of $780,
900; or a bank of $4,000 security
would have $1,000. The active banks
are the five other banks of Boise on
which we check or deposit with each
day, and the bank or banks having
the lowest percentage of deposit the
previous day, is invariably given the
deposit, and in order to keep them
inside the 20 per cent variation above
or below the average, the maximum
and minimum deposit must be kept
figured at all times. The Boise banks
are usually given checks ON them
selves when they present warrants
for payment unless the amount
would take them below the 20 per
cent average-in that case, they are
given checks on some other Boise
bank or given a deposit to equalize
it. A daily record is kept of the per-
centage balance of all banks. The
outside banks are all given exactly
the same amount Of deposit proper
to the amount of %securitv fl