to the holder. Thus, pay to John Doe when he shall have completed the boat he is now building for me, Jno. Brown

5. A Restrictive Indorsement, is one which limits the payment to some particular person and stops the further transfer of the Note, Bill or Check, as pay to John Doe only, Jno. Brown.

6. An Indorsement with Protest Waived is one in which the indorser waives Protest, thus remaining responsible to the holder of the Note, without receiving notice of Protest, if the maker fails to pay it, thus: Protest Waived, John Brown.

Pay Roll Help. In large mining and manufacturing companies where a great many men are employed, the Pay Roll Book is a very interesting one, because, if it is properly arranged it can be used as a book of original entry. In addition to having the pay roll contain special columns, the accountant will find a rate and wage table of great value, for instance, in case of a mining company where different rates are paid for mining coal, a rate sheet should be made for each rate, covering the largest number of wagons mined by any one man. In making up the Pay Roll the use of these rate sheets will not only save time, but mistakes are less apt to be made, when so many calculations are necessary. Any firstclass stationer can furnish a wage table for day labor.

Payments on Discounted Notes. When payments are received on Notes which have been discounted and still in the bank, the money should be taken to the bank, and the amount endorsed thereon. No entry is necessary on the books, except to make a memorandum of such payments in the Bills Receivable Book.

Checking Payments. In large houses where goods are sold on different terms, payments on account are usually intended to cover certain bills, when the remittance is received it is advisable to turn to the account in the Ledger and check the items covered in such settlement: one advantage of this is that the unchecked items at any time will show the balance due on an account. In checking payments, the amounts charged should be marked by letters, as a. b. c. etc; the same letter should be used for the credits. When all the letters of the alphabet have been used to check items in an account, begin at a again Numbers should not be used, they are misleading.

Footings Carried Forward. When forwarding accounts to new pages in same Ledger, or to a new Ledger, during the year, the total debit and credit footings should be carried forward, instead of the balances between the debit and credit sides. This is especially necessary

with merchandise and similar property accounts in order that the total cost and sales may be shown by the account.

To Open a New Ledger. When the books are closed at the end of the business year, and new ones are to be opened, then only the balances and inventories are to be transferred, except the Bills Receivable and Bills Payable accounts which should be continued.

To Check filled Pages. When a Ledger page is filled and closed up or balanced, so that no more entries can be made on it, make a check mark at the 'op immediately over the centre of the name to indicate that it is dead. To check all dead pages in this way will save a great deal of time, when taking a Trial Balance as it can be passed quickly without examination.

To Establish a Factory. It is often desired to establish a Factory or Mill in connection with the regular business and have the accounts kept in the general books.

When this is done, open an account with the Factory or Mill and debit it for the cost of construction and equipment, and for all goods delivered, money paid and obligations assumed on account of it, and credit it for all goods and money received from it.

The Duty of a Bookkeeper on taking Charge of a Set of Books. The first duty of a Bookkeeper in taking a set of books from another bookkeeper to keep is to take a Trial Balance to ascertain whether or not the books balance. If they do not, the proprietors should be informed of the condition, and that they must be made to balance before proceeding. The firm should direct that the error be sought, or force a balance by entering the "out of balance" amount in Loss or Gain, or to make a statement of the Assets and Liabilities and open a new set of books. 2. Study carefully the method by which the books have been kept. 3. Examine the index to the Ledger and find out what other than personal accounts have been kept, so that you may know into what accounts expense has been divided. 4. See what auxiliary books are used. 5. See whether Ledger accounts are kept with the banks in which deposits are made. 6. 6. See that the cash on hand agrees with the balance shown by the books. 7. Have the bank book written up, and should there be any discrepancy, see whether the unpaid checks would make up the difference: if they do not, the error must be found by comparing the various deposits, and checks issued. 8. See that the Bills Receivable on hand agree with the Bill Book and the Ledger Account of Bills Receivable. Give notice to payers of the near maturity of Bills Receivable.

9.

10.

Notice whether any Bills

Payable are due or will mature in a few days, and report to the firm.

12.

11. See that all collaterals are on hand as shown by the books. If the method of keeping the books, as kept by the preceding bookkeeper is such as requires unnecessary work and unscientific, formulate your own plans and report to the firm of your desires in a courteous way, bearing in mind that business men are often opposed to changing the methods which they have long been accustomed to, unless the advantages are made very clear to them. 13. If the books have been kept by Single Entry, prepare a statement of Assets and Liabilities, then change the books to Double Entry.

The Duty of a Bookkeeper leaving Charge of a Set of Books. For a bookkeeper to preserve his reputation for competency, honesty, honorable dealing and duty to the firm, he should on leaving a set of books, write them up to date and submit a Trial Balance. Have the Bank book balanced and show that the cash on hand agrees with the balance as shown by the books, and show that the Bills Receivable, Bonds, etc. on hand agree with their accounts, etc.

Comparative Statements. Many bookkeepers could greatly increase their salaries if they would study their employer's interests, and render in service double the value for which they receive compensation. One of the best ways a bookkeeper can increase the value of his services to his employer is to render a daily, monthly and yearly comparative statement of the business. The following is a good form for Statement of Daily Sales :

The following monthly, quarterly and yearly, Comparative Statement will be appreciated by all business men, as it can be made with as many columns as desired and, to run for 5 or 10 years. The records to be entered therein can easily be obtained at the end of the month, when it should be written up and submitted to the General Manager.

Each quarter is footed separately, and to find the total amounts for the year, add together the quarterly totals, or omit the quarterly totals and foot the entire column. This statement can be ruled to contain department sales, etc.

The Clearing House System.

This is one of the modern shorthand processes in banking which few students of finance outside of banking circles seem clearly to understand. There is nothing intricate or mystifying in this quick method of making bank settlements. The circle of banks associated

in any settling arrangement of this class simply agrees to make a conjunction through representatives, messengers and settling clerks, and at the place of meeting effect those exchanges which in ante-clearing House days were made by the slow and wearisome methods of the old fashioned familiar type. This old method demanded that every bank having claims upon the other banks should send out messengers to collect the same over the counters, and that all banks having payments to make to other banks should by their representatives make special trips to the creditor banks to cancel the obligations. There was much weary traveling for the messengers, a great amount of paying and receiving by the Tellers, and much incidental work from exposure of funds, all of which has,to a very great extent, been done away with by the institution of Clearing Houses.

The following is the form of settling clerk's statement; for convenience all banks belonging to the Clearing House are numbered. The figures to the extreme left are their numbers and against the numbers are their names. The arrangement of the order of their numbers and names is in accordance with the age of the institution.