Mormon summarizes Alma as the leader of the church by indicating that he governed it well. They have many baptisms.
All is not totally well, however. Mormon introduces into verse 38 the foreshadowing of the major conflict to follow. Amidst all of the things that are going well inside the church, there are problems outside of it. The social division has become so acute that it is resulting in persecution of the church from other members of the same society. This situation will be discussed more fully in the next chapter.
Along with the details of the particular story, the discussion of the “church” in Mosiah chapters 25-27 provide several models for the modern church:
Literary: Mormon is setting up another contrast in his story. He is contrasting the good inside the church with the persecutions and “bad” outside the church. Even though he touches on the persecutions here, this is the set up for the “good.” He will touch on the “good” later, but will be concentrating on the “bad” of the persecutions - all of this leading to the resulting good that comes from the situation.
Textual: There is no break here in the 1830 text. Mormon intended this story to continue without chapter interruption. In fact, there is no paragraph break here in 1830. In the 1830 edition, the paragraph was:
[not the beginning of the paragraph, it started with verse 34]…And they did admonish their brethren; and they were also admonished, every one by the word of God, according to his sins, or to the sins which he had committed, being commanded of God to pray without ceasing, and to give thanks in all things. And now it came to pass that the persecutions which were inflicted on the church by the unbelievers became so great that the church began to murmur, and complain to their leaders concerning the matter; and they did complain to Alma. And Alma laid the case before their king, Mosiah. And Mosiah consulted with his priests.
In that original context, the contrasting of the good and the bad is even more clear.
Further reading: These passages one the nature of church discipline can be seen as a model for the way the church operates today. For a more complete discussion of this topic, see H. Donl Peterson. “Church Discipline in the Book of Mosiah.” In: The Book of Mormon: Mosiah, Salvation Only Through Christ. Religious Studies Center, Brigham Young University. 1991. pp. 211-226.