The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1889-01-08
their business efforts and are endeavor'
ing to cooperate on the

their business efforts and are endeavor-
ing to cooperate on the
EXCHANGE PLAN.
This plan is pure and simple co-opera-
ton, with no joint stock features
whatever and differs from similar
plans before introduced in several i'm
portant particulars. 1t is calculated
to benefit the whole class and not
simply those who have surplus money |
to invest in capital stock; it does not
aspire to and it is not calculated to be
a business or profit in itself, but is in
tended to be strictly auxiliary and
supplemental to the farming efforts.
Another distinctive feature of the ex-
change plan is that instead of en-
~couraging a number of independent
stores scattered over the country
each in turn to fall a prey to the oppo-
sition whenever they shall think it OF
sufficient Importance to concentrate a
few forces against it-this plan pro-
vides for a strong central State head,
and places sufficient capital stock there
to make that the field for c~oncentrat-
ing the field 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 ad-
vantage in repelling the attacks of the
opposition, and seems competent to
conquer all the external opponents if
properly sustained by the constituency.
The greatest danger comes from bombs
thrown by the enemy that cause dis
sension and dissatisfaction among the
membership. Of course a big majority
will be found firm and steadfast, but
a few are always waiting a~nxiously to
be struck by such bombs. This sys-
tenn 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 it's
capital stock paid up sufficiently to
enable the central exchange to stock
up with goods and the exchange plan
proper was held in allegiance, intend
ing to develop it fully when the CAPT
tai 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 we're 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 18th, and as the previous
custom of the country had been Oct.
lst, that was intended as a step toward
frightening the season for marketing
the cotton. The effort contemplated
making nothing fall due on the follow
ing year prior to the first day ofJanu-
airy. The Exchange was expected to
use the joint notes, which were nego-
table 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 sue
c~essful, 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-fve thousand
dollars, the amount of stock paid into
the cooperation was about seventy
six thousand dollars; but at this time
the Exchange was in it's greatest
trouble and received the criticisms
through the press that crippled it and
only received about seventeen thou
sand dollars cash capital on which to
operate and had put out in the neigh
borhood of two hundred thousand dol
lars worth of goods to the brethren, or
nearly twelve times it's capital. The
roc11t of tho effort In Tovoc hoe prob-