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 directors, 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 responsible 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 accompanied 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 semimonthly 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 embarrassments 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
