copy of the statement, with the Commanding Officer's remarks indorsed thereon, will be exhibited in one of the rooms of the exchange during the ensuing month. Any question not involving pecuniary responsibility upon which the Post Exchange Council and Commanding Officer may disagree will be submitted for final decision to the Department Commander.

6. The subcommittee of noncommissioned officers.-A subcommittee of noncommissioned officers, one from each company, to be selected by the captain as best fitted to represent the interests of the enlisted men thereof, will be convoked by the Commanding Officer not less than four times a year. The committee will orally, or in writing, submit to the Council its views in respect to the immediate internal operations of the exchange, and recommend any changes that may be desired by the enlisted men, but it is not empowered to criticise the management. Its views and recommendations will be carefully and respectfully considered by the Council, whose action thereon will be reviewed by the Commanding Officer.

7. Rules of order.-Rules of order will be prescribed by the officer in charge, under the Commanding Officer. Gambling or playing any game for money, or anything of value, is forbidden in any exchange. Civilians, other than those employed and resident on the military reservation, will not be permitted to enter the rooms of an exchange without first obtaining the authority of the Commanding Officer.

8. First expense of stock and fixtures.-The expense of fitting up the quarters of the exchange and procuring the necessary articles for the first stock and fixtures may be met by an assessment upon the funds of the several organizations contributing to the institution, or these may be contracted for, or procured on credit. When procured on credit, the bills must be paid from the first profits, and it is to be distinctly understood that the officers incurring the debt are responsible for the payment, and not the Government. The Quartermaster's Department is authorized to sell for cash to exchanges at cost, with price of transportation added, such articles of fuel, forage, light, furniture, and fixtures as may be needed and can be spared from stock on hand.

9. Exchange features.-An exchange doing its full work should embrace the following sections: (a) A well-stocked general store in which such goods are kept as are usually

required at military posts, and as extensive in number and variety as conditions will justify; (b) A well-kept lunch counter supplied with as great a variety of viands as circumstances permit, such as tea, coffee, cocoa, nonalcoholic drinks, soup, fish, cooked and canned meats, sandwiches, pastries, etc.; (c) Reading and recreation rooms, supplied with books, periodicals, and other reading matter, billiard and pool tables, bowling alley and facilities for other proper indoor games, as well as apparatus for outdoor sports and exercises, such as cricket, football, baseball, tennis, etc.; a well-equipped gymnasium, possessing also the requisite paraphernalia for outdoor athletics.

10. Sale of beer, wine, or liquors prohibited.-The sale of or dealing in beer, wine, or any intoxicating liquors by any person in any post exchange, or canteen, or army transport or upon any premises used for military purposes by the United States, is prohibited.

11. Purchase and sale of goods.-Purchases will ordinarily be made by the officer in charge, or by the steward when so authorized, but articles in considerable quantities will be procured under contract by the officer in charge, with the approval of the Council. In no case will orders for goods, however small, be given by the enlisted attendants to the person furnishing them, nor shall the steward or any employee of the exchange have, either directly or indirectly, any personal interest in the purchases, sales or profits, or any advantage of wastage or perquisites of any kind whatever. Whenever contracts or agreements for purchases are made by exchange authorities, who by change of station or other cause are removed, such contracts or agreements must be carried out by their successors. The Subsistence Department is authorized to sell to the exchange at cost price any of the articles composing the ration, and such other articles as may be on hand for sale. But in reselling such goods in small quantities, no profit will be charged by the exchange beyond the fractions of cents that are necessary in making change.

12. Lunch room and price lists.-In the lunch room prices should be made as low as the cost of the articles, increased by expenses of the atttendants, fuel, lights, and waste will permit. Other than this the tariff of prices will be regulated by the circumstances surrounding each exchange. Printed or

written price lists will be conspicuously posted in the various sections, and will be corrected when necessary.

13. Checks or coupons.-The use of checks or coupons representing values, and exchangeable for merchandise or other charges at the exchange, is encouraged, merely. If a man who is not likely to abuse the privilege has money for which he has no particular use on pay day, and desires to avail himself of the opportunity, it is frequently a wise policy to furnish him with a supply of checks; but care should be taken that these checks are not disposed of to unauthorized persons, and to provide against this, they should never be redeemed in cash. When permitted by the Commanding Officer, they should be sold by the officer in charge and regarded as a liability until redeemed.

14. System of keeping accounts.—It is not desirable to enforce a particular method of bookkeeping, or impose a special system of accounts upon exchanges. This will be regulated by the exchange officer, whose accounts should be so kept as to be readily understood by the inspecting officers, and to afford the information necessary to render the reports hereinafter prescribed. All business of the exchange must be transacted in its name, and not that of the officer in charge. Invoices, receipted bills, account books, and other papers relating to the business of an exchange pertain to its records, and will not be removed from the post, except in the event of its abandonment, when they will be forwarded to the Adjutant General of the Army.

15. Sales on credit.-When the Commanding Officer and Council are agreed that it is to the true interest of the command, the former may authorize a credit at the exchange to any soldier in good standing to an amount rot exceeding onefifth of his monthly pay. This will be given upon the request of the soldier in writing, approved by his company commander, and these credit checks will be carried on the accounts of the exchanges as "bills receivable" until paid. A man seeking credit privilege will be distinctly informed that credit is given upon the understanding that he must render prompt and unsolicited payment, and only to such men as can be trusted. Defaulters will be immediately debarred the privileges of the exchange, and this under such publicity as will make the act appear disgraceful in the eyes of their comrades.

16. Operating expenses.-To secure uniformity in rendering accounts and accuracy in preparing comparative statements, the following are specified as the items that properly enter into the account of operating expenses:

(a) Compensation of attendants;

(b) Unavoidable breakage, wastage, destruction, and damage;

(c) Insurance on merchandise, building, furniture, and fixtures;

(d) Taxes to which the exchange may be legally liable; licenses, either State, county, or internal reveuue;

(e) The cost of books, blanks, and other stationery; fuel and lights, when not supplied by the Quartermaster's Department; necessary policing about the quarters, when not performed by the regular attendants; express and freight charges on articles that are neither merchandise nor permanent fixtures.

Transportation should not be charged to operating expenses, but added to the cost of the merchandise or fixtures to which it pertains. Repairs to quarters and repairs to and renewals of fixtures should be charged to buildings and fixtures, and not to operating expenses. License to sell tobacco at a post exchange should be taken out in the name of the "Post Exchange at Fort ------," upon the application of the officer in charge, signing himself as "Agent of the Fort ----- Exchange."

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17. Distribution of profits.-When an exchange is absolutely free from debt a sum sufficient to cover all anticipated expenses for at least one month will, at the end of each quarter, or oftener if deemed advisable by the Council and Commanding Officer, be taken from the cash on hand and set aside as a reserve fund, and the remainder, which will represent the net profits of the exchange for the period specified, will be disposed of in the following manner: (a) Five per cent will be paid into the regimental fund if a band be serving at the post; (b) Such sum as the Council, with the approval of the Commanding Officer, may determine will be appropriated for the benefit of the entire garrison to all or any of the following purposes: Laying out and preparing and cultivating gardens, and supplying seeds, roots, or plants for the same; the purchase of books, newspapers, periodicals, stationery, etc., for the post exchange or post library the purchase of gymnastic appliances when

there is no gymnasium connected with the exchange; prizes for athletic sports. The expenditure of profits for purposes other than these requires the approval of the Secretary of War. The remaining money may be divided among the organizations contributing to the exchange on such equitable basis as shall be determined by the Council, with the approval of the Commanding Officer. Where differences in this respect arise between the Council and Commanding Officer, the decision of the Department Commander will be final. The money thus distributed will be paid into the company or detachment funds. In addition to the dividends for the hospital detachment, the proportionate amounts for the sick in hospital who belong to the various companies and detachments that are members of the exchange will be turned over to the surgeon. Any variation from these rules requires the sanction of the Secretary of War.

A division of the cash resources after all debts have been paid will also be made whenever the troops, or any part of them, being members of the exchange, change station; in this event no deduction on account of the reserve fund will be made from the share of the withdrawing troops.

The amount of any loss that an exchange may sustain in consequence of the failure of a soldier to pay for articles properly bought on credit, whether by the desertion of the debtor or by his discharge and virtual repudiation of the debt, will be deducted from the share of the profits of the company or other organization to which the defaulter belongs. Losses by fire or other casualty, death of the debtor, depreciation of value of the fixtures, and deterioration of articles kept for sale, and the accidental breakage of fixtures or other property will be borne by all the participating organizations in common, and should be deducted from the gross receipts before dividing the profits. Credit accounts should be treated as bills receivable until they are settled or found to be a loss, but bills receivable should not be included in the gross amount from which profits are resolved. The amount of cash on hand on the dates specified, after all matured debts are paid, and after setting aside as a reserve fund a sum sufficient to meet anticipated debts for a period not less than one month, constitutes the sum subject to distribution.

18. Reports. The report required by paragraph 326 of the Regulations, showing the financial condition of the exchange,