A LESSON IN CO-OPERATION. 823 



The Exchange commenced business by handling cotton and 

 grain, and farm implements. The former were sold after the plan 

 of a regular commission-house ; the latter were procured and fur- 

 nished at good discounts by centering the trade direct to a whole- 

 sale dealer, who was nominally the Alliance implement agent, but 

 in fact was selling on his own account. It was but a short time, 

 however, until the business was extended to the buying and sell- 

 ing of dry goods, groceries, and general supplies. 



Notwithstanding the lack of capital which appears from the 

 business manager's reports, the Exchange was complimented by 

 the mercantile public with a fairly good credit, and may be said 

 to have commenced life under the most favorable circumstances. 

 The financial statement for the forty-five days ending October 

 31st, is as follows : 



Accounts and bills receivable $9,962 51 



Office fixtures and furniture 202 20 $10,164 71 



Liabilities. 



Accounts and bills payable $9,511 24 



Total liabilities $9,511 24 



Net capital $653 47 



Losses. 



Expense account $312 64 



Help account 1,588 82 



Total losses $1,901 46 



Gains. 

 On bagging and ties $79 65 



Interest and discount 1 80 



Commission account 493 41 



Merchandise , 62 



Total gains 575 48 



Net losses $1,325 98 



Investment $201 40 



Received from donation, etc 1,778 05 



Total capital $1,979 45 



Deduct net losses 1,325 98 



Net capital 653 47 



It will be observed that the September cash balance of $201.40 

 has been supplemented only by $1,778.05 " received from donation, 

 etc.," which was mainly " donation " and little " etc." that is to 

 say, chiefly from the citizens' subsidy and almost nothing from 

 stock subscription. The statement for November exhibits an 

 increment of $1,122.40 from donation account, and practically 

 nothing from stock, with a net capital of only $1,195.17, showing 

 the business to be still operating at a loss. 



At a meeting of the directors, November 5, 1887, a novel plan 

 of business was adopted which became the central and chief 



