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 him self 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 not 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."

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

exchange, which will give the per capita, and this multiplied by the number of men of an incoming organization will give its entrance fee. The sum thus paid into the funds of the exchange should be regarded the same as funds resulting from any other sale, and go to increase its cash account or working capital. It should not be divided among the members, excepting as it may become divisible at a subsequent declaration of dividends. A company joining the exchange when unable to pay its assessment in cash may be charged with it, aud such charge may be liquidated from the company's share of the profits of the exchange. An organization joining should pass to the exchange some written evidence of its debt and obligation to pay the amount assessed, and such paper should be carried on the books of the exchange as a “bill receivable" and be regarded as an asset, which should be reduced in value from time to time as the profits are divided. When an organization, by reason of change of station or for other cause, desires to withdraw from an exchange, the value of its shares being determined, that sum will be withdrawn from the gross funds of the exchange and paid over to the withdrawing organization. Any amount due, but, for lack of available funds, not paid to a company when retiring from the exchange, should be paid out of the first profits accruing to the institution; the amount so due and unpaid should be carried on the books of the exchange as a “bill payable," and be regarded as a liability until liquidated.

20. Final disposition of business. -When notice is received that the entire garrison of a post is to be withdrawn and the post discontinued, the exchange stock will be reduced to the lowest extent possible and, so far as may be, converted into cash. Prior to the departure of the troops the property of the exchange will be sold and the proceeds, together with the cash, equitably distributed, under the direction of the Council, among the organizations that are members. The officer in

charge will make a final report of the matter through military channels to the Adjutant General of the Army.

BY COMMAND OF LIEUTENANT GENERAL MILES:

H. C. CORBIN,

Adjutant General.