REPORT OF THE SECRETARY OF AGRICULTURE. 39 



The tax imposed by the act of August, 1921, on transactions known 

 as " privileges," " bids," " offers," " puts and calls," etc., was upheld 

 by the Supreme Court, and the result has been that these transac- 

 tions have been discontinued. In addition, the Supreme Court ex- 

 pressly stated that its decision did not affect the duty placed on the 

 Secretary of Agriculture by the future trading act to investigate 

 the facts about grain-marketing conditions. Representatives of the 

 department have therefore been maintained at Chicago and Minne- 

 apolis, where they have kept close observation over the operations 

 of the exchanges and have compiled a large amount of information 

 as to the volume and course of transactions on the exchanges. This 

 information will be helpful in carrying out the provisions of the 

 new law. 



The requirements of the new law, which becomes effective on No- 

 vember 1, 1922, are substantially the same as those of the one de- 

 clared unconstitutional. There is no interference with " hed<xins: " 

 transactions on the boards of trade or with the ordinary speculation 

 or buying and selling of contracts for future delive^3^ If there 

 should be evidence of undue manipulation or attempts to corner the 

 market, or of the dissemination of false or misleading information 

 about crop or market conditions by members of the exchanges, such 

 matters will be inquired into and promptly dealt with as required by 

 the statute. 



The Secretary of Agriculture is given authority to examine the 

 books and records of the members of the exchanges and to require 

 such reports as may be necessary to carry out the provisions of the 

 act. There is thus an opportunity to make a thorough inquiry into 

 prevailing systems of grain marketing and to secure information 

 which has never heretofore been available, and which is urgently 

 needed before important changes in marketing methods can safely 

 be required. 



A BUILDING PROGRAM FOR THE DEPARTMENT. 



In my annual report last year I called attention to the fact that 

 the offices and laboratories of the Department of Agriculture in 

 Washington are sctittered in more than 40 buildings in various parts 

 of the city. There has been no improvement in this situation and, 

 due to the lack of centralized housing facilities, there continues to be 

 a tremendous waste of Government time and money. A satisfactory 

 256S4— AGR 1923 4 



