824 THE POPULAR SCIENCE MONTHLY. 



feature of the institution, becoming first the means of its sudden 

 advancement, and later the cause of its sudden suspension. It 

 is attributed, in the minutes of the meeting, to one of the direct- 

 ors, but probably owes its origin to the manager, who was the 

 controlling spirit of the Exchange enterprise from its inception to 

 the spring of 1889 the period of his management. The plan was 

 briefly as follows : 



1. Members of each Sub- Alliance, wishing supplies on credit, 

 to furnish a schedule of their probable needs during the year, 

 together with a showing of their full financial responsibility, and 

 a pledge of cotton at least three times as much as the amount of 

 credit. 



2. These several members of each Sub-Alliance to execute a 

 joint note for the estimated amount of supplies, said note to draw 

 interest after May 31st and to be paid November 15th. 



It was designed that these notes should be signed also by re- 

 sponsible farmers (if necessary to make them bankable), who 

 would secure themselves against loss by taking mortgages on the 

 growing crops. In this way the country merchant was to be 

 avoided. 



These joint notes acknowledged full consideration in the face, 

 and were to be credited finally with the difference between the 

 face and the actual credit account. The notes at first were accom- 

 panied by a sort of bond of corresponding number, issued by the 

 Exchange, agreeing not to part ownership with the notes ; but, 

 upon the failure of the order during November and December to 

 pay in any considerable amount of the capital stock, the available 

 donation being then about exhausted, the notes were, by order of 

 the board of directors in January, used as collateral security in 

 borrowing money. 



The business manager's report for the month ending January 

 31st showed $4,157.36 increase of capital during the month, or a 

 total of $5,247.93. The months of January, February, and March 

 constituted a period of great activity. The country was alive 

 with lecturers in the joint employ of the State Alliance and the 

 Exchange ; " The Southern Mercury," organ of the order, had an 

 extensive circulation, and the Exchange was issuing a semi- 

 monthly circular letter containing private advice, discounts, etc. 

 During this time the total capital was increased to $20,215.38 ; the 

 amount of joint notes reached $200,974.88, on which goods had 

 been advanced to the amount of $108,371.06. 



An extract from the business manager's report for the month 

 of March shows " the beginning of the end," the first embarrass- 

 ments that soon culminated in a serious, not to say fatal, collapse : 



' The business manager spent the whole of the month of 

 March in trying to negotiate banking arrangements whereby a 



