THE NATIONAL ALLIANCE. 85 



head, and places sufficient capital stock there to make that the field for con- 

 centrating the fight of the opposition, and a bulwark of strength and refuge 

 for the local store efforts. The opposition to the central exchange under this 

 system is of course very determined and very bitter, but it has been found 

 vastly better than the scattering fight, and certainly has a much greater 

 advantage in repelling the attacks of the opposition, and seems competent 

 to conquer all the attacks of the external opponents, if properly sustained by 

 the constituency. The greatest danger comes from bombs thrown by the 

 enemy, that cause dissension and dissatisfaction among the membership. Of 

 course a big majority will be found firm and steadfast, but a few are always 

 waiting anxiously to be struck by such bombs. This system has been tried 

 longer and more extensively in Texas than any other State, and has been 

 attended with no little strife and opposition. In the effort made in that State, 

 it was thought best last winter to deviate from the true exchange plan ; the 

 business was just being started and did not have its capital stock paid up 

 sufficiently to enable the central exchange to stock up with goods, and the 

 exchange plan proper was held in abeyance, intending to develop it fully when 

 the capital should be sufficiently paid in ; and a plan was offered by the 

 Alliances, and by them adopted, by the provisions of which a system of joint 

 notes, made by the Sub-Alliances and secured by mortgages on the cotton 

 crop, are given by the Sub-Alliances direct to the central exchange, under the 

 supervision and approval of the county business agent. These joint notes 

 ranged in amount from one hundred to five thousand dollars, and were in- 

 tended to represent the amount of credit purchases that each Alliance desired 

 to make on time during the year. All the notes were made due November 

 1 5th, and as the previous custom of the country had been October ist, that 

 was intended as a step toward lengthening the season for marketing the 

 cotton. The effort contemplated making nothing fall due, on the following 

 year, prior to the first day of January. The exchange was expected to use 

 the joint notes, which were negotiable paper, as a basis of credit, and borrow 

 money upon them to be used in purchasing the supplies for the makers of the 

 notes. 



"The effort was only partially successful, owing principally to the small 

 amount of capital paid up. The notes, if ever so good, could not be used at 

 their face value in borrowing money ; the borrower must have some capital or 

 ability to pay of himself. The amount of notes made in favor of the exchange 

 was about four hundred and twenty thousand dollars ; the amount of goods 

 put out on credit was about two hundred and seventy-five thousand dollars ; 

 the amount of stock paid into the co-operation was about seventy-six thousand 

 dollars ; but at this time the exchange was in its greatevSt trouble, and received 

 the criticisms through the press that crippled it and interfered the most with 

 its success ; it had only received'about seventeen thousand dollars cash capital 

 on which to operate, and had put out in the neighborhood of two hundred 

 thousand dollars 1 worth of goods to the brethren, or nearly twelve times its 

 capital. The result of the effort in Texas has probably demonstrated that 

 that plan should not be attempted by an exchange, unless it has a large paid- 



