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 conservative 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. | Liabilities. | ||||
| Exchange building, Dallas | $70,000 00 | Bills payable on merchandise | $44,704 42 | ||
| Exchange building, Belton | 12,000 00 | Bills payable on buildings | 29,300 00 | ||
| Exchange building, Longview | 9,000 00 | Accounts payable | 1,285 81 | ||
| Live stock, Henrietta | 7,500 00 | $75,290 23 | |||
| Merchandise, all points | 50,238 00 | Present net worth | 104,557 77 | ||
| Accounts and bills receivable, estimated good | 39,210 00 | ||||
| $179,848 00 | $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 providing 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 required 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 Farmers' Alliance Exchange of Texas.
To recapitulate: The Exchange commenced to do business
