KEPOKT OF THE SECEETARY OF AGRICULTURE. 31 



telegraph with the latest news of crop movements and prices. The 

 service was rendered in succession to the growers and shippers of 

 strawberries, tomatoes, cantaloupes, and peaches, and to the shippers 

 of northwestern pears. In several of the more important districts 

 the information has resulted in a wider or more intelligent distribu- 

 tion, the avoidance of gluts in specific markets, fewer diversions of 

 cars in transit, and a consequent shortening of time between the 

 producer and the consumer. 



THE COTTON -FUTURES ACT. 



The United States cotton-futures act is the first general regulative 

 statute passed by the Congress for the improvement of marketing 

 conditions. It was enacted August 18, 1914, and became operative 

 February 18, 1915. Sufficient time has elapsed to enable one to 

 judge, in some measure, whether it is accomplishing the purposes 

 intended. 



The quotations of future contracts on cotton exchanges have a 

 commanding influence upon the prices paid for spot cotton. Pre- 

 ceding the adoption of the law it was generally believed tha.t these 

 quotations were not true barometers of spot-cotton values, but usually 

 were unwarrantably low and at times fluctuated unduly in response to 

 manipulative influences. This condition was attributed largely to 

 certain evil features which had crept into the practices on future 

 exchanges as embodied in their contracts. 



The act is a taxing statute, applicable to all contracts for the future 

 delivery of cotton entered into on exchanges and like institutions. 

 It aims to bring the future exchanges to a performance of their 

 true economic functions by inducing them to adopt a form of con- 

 tract free from evil elements. Its motive is to eliminate unfair 

 competition. It is in the interest alike of producers, merchants, 

 spinners, and exchange members. 



After the passage of the act, even before it became operative, the 

 cotton- future exchanges in this country adopted the form of contract 

 prescribed in its fifth section, and since, with negligible exceptions, 

 they have traded exclusi^-ely under this form. Careful observation 

 since the new form of contract came into use indicates that the statute 

 has accomplished the chief economic objects anticipated by its 

 framers. Future quotations now represent spot values more ac- 

 curately ; sharp and sudden fluctuations, such as commonly occurred 



