A LESSON IN CO-OPERATION. 827 



and extravagant methods of its first winter, and in the summer and 

 fall of 1888 it was further crippled by attacks of "The Southern 

 Mercury/' the State Alliance organ, on its business management. 

 This caused internal dissensions which threatened at one time to 

 disrupt the order, creating two bitter factions, which for a long 

 time refused to be reconciled. Early in 1889 the business manager 

 of the Exchange resigned, and a new one was elected in his stead. 

 Meanwhile there had been a change in the editorial management 

 of the " Mercury," and the spirit of true fraternity soon reasserted 

 itself, the order becoming again firmly cemented, though it had 

 lost materially in members. However, the better part remained, 

 and the Alliance has since been happily progressing in all that 

 relates to social and economic education. 



The management of the Exchange during 1889 was conserva- 

 tive and judicious, and, under other circumstances, he would 

 doubtless have made it a successful enterprise , but it was too 

 heavily encumbered, and the confidence of the order in it had 

 been sacrificed. His report to the State Alliance, August, 1889, is 

 as follows : 



Resources. 



Exchange building, Dallas $70,000 00 



Exchange building, Belton . . . 12,000 00 



Exchange building, Longview . 9,000 00 



Live stock, Henrietta 7,500 00 



Merchandise, all points 50,238 00 



Accounts and bills receivable, 



estimated good 39,210 00 



$179,848 00 



Liabilities. 



Bills payable on merchandise . $44,704 42 



Bills payable on buildings 29,300 00 



Accounts payable 1,285 81 



$75,290 23 

 Present net worth 104,557 77 



$179,848 00 



Cash received and paid out. 



Amount paid on old indebtedness $34,103 43 



Amount received from sale of lands $14,800 00 



Amount received from capital stock 5,276 50 



Merchandise sales and collections 14,026 93 



$34,103 43 $34,103 43 



Report made to directors in January showed the mercantile indebtedness to be $46,000. 

 The real fact is that it was $78,817.85. 



The State Alliance, in August, 1889, passed a resolution provid- 

 ing for a voluntary trust fund of $75,000, or enough to discharge 

 the entire indebtedness of the Exchange, but not to be used until 

 raised in full. The trust fund never reached a third of the re- 

 quired amount, and in December last the Exchange building at 

 Dallas was sold under mortgage for $35,000. Immediately there- 

 after the manager proceeded to wind up the affairs of the Farm- 

 ers' Alliance Exchange of Texas. 



To recapitulate : The Exchange commenced to do business 



