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 furnished at good discounts by centering the trade direct to a wholesale 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 selling 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
