MARKETS AND EURAL ORGANIZATION. 395 



ENFORCEMENT OF THE UNITED STATES COTTON FUTURES ACT. 



By order of the Secretary of Agriculture the administration of 

 the cotton futures act was delegated to the Office of Markets and 

 Rural Organization. Close cooperation is maintained with the Office 

 of the Solicitor, where all legal points are determined. 



All of the following projects have been inaugurated in connection 

 with the enforcement of this act, in order to render its administration 

 as effective as possible. 



INVESTIGATION OF FUTURE AND SPOT MARKETS FOR COTTON. 



The work under this project has developed along three clear-cut 

 lines, as indicated below: 



INVESTIGATION OF KUTUKE EXCHANGES. 



A careful investigation has been made of the future exchanges at 

 New York and New Orleans, both of which have adopted the form 

 of contract prescribed by section 5 of the cotton futures act. The 

 cotton exchanges at Liverpool, Bremen, and Havre have been visited 

 and their methods of business examined carefully. The investi- 

 gation of the American exchanges has been conducted from three 

 standpoints. 



The rules and regulations of the exchanges have been studied in 

 detail, and their methods of business have been compared with the 

 requirements of the cotton futures act. Suggestions as to changes 

 in their regulations have been made from time to time wherever a 

 conflict was apparent between any rule and the act. These sugges- 

 tions in most cases have been accepted by the exchanges, while in 

 other cases action on the part of the exchanges is still pending. Fre- 

 quent visits have been made to future exchanges in order to gather 

 first-hand information as to their internal organization and to ex- 

 plain to the members of the exchanges any points on which assist- 

 ance was needed. 



Owing to the importance of New Orleans as a cotton market, and 

 owing to the fact that its exchange determines commercial differences 

 on the basis of its own actual spot transactions, it has seemed advis- 

 able to station an agent of this office in that city. The duties of this 

 agent are (a) to examine all sales of spot cotton made in the New 

 Orleans market, and thus insure the accuracy of published quotations 

 for spot cotton; and (5) to keep himself fully posted as to the general 

 local conditions, that he may be able to advise this office at all times 

 on matters about which inquiry may be made. 



INVESTIGATION AND DESIGNATION OF SPOT MARKETS. 



An investigation of the spot markets was made during the last 

 fiscal year by representatives of the office in cities of the United 

 States where cotton customarily is bought and sold in large quanti- 

 ties. After carefully considering the conditions in each market and 

 after securing the promise of cooperation from the respective ex- 

 changes, certain cities were selected and designated as "bona fide 



