540 ANNUAL REPORTS OF DEPARTMENT OF AGRICULTURE. 



has been rendered in California, Georgia, and a number of other 

 States in perfecting existing standards for fruits and vegetables and 

 in formulating grades for products which have not yet been stand- 

 ardized. In several States assistance has been given in developing 

 a food-products inspection service and in coordinating the work 

 with that of the Federal bureau at receiving points. Assistance has 

 been given to growers and shippers in several States in the market- 

 ing of wool. Educational and demonstrational work has been carried 

 on in many places for the purpose of furnishing growers and ship- 

 pers with information leading to better handling, packing, grading, 

 loading, and shipping of their products. Local marketing problems 

 have been studied in a number of States. For example, a study has 

 been made of the marketing of Georgia sweet potatoes; studies have 

 been made in the central northwest of the problems of local potato- 

 shipping associations; in Oldahoma a series of demonstrations in 

 grading and marketing grain have been conducted; a study has been 

 made in Vermont covering the marketing of maple-sap products. 



ADMINISTRATION OF THE UNITED STATES WAREHOUSE ACT. 



The administration of the United States warehouse act has been 

 directed by H. S. Yohe. 



During the past year unusual interest w^as shown in the Federal 

 warehouse act by warehousemen operating on a large scale. This is 

 especially true with regard to cotton warehouses, both in producing 

 sections and at seaports. 



A marked interest developed among grain warehousemen in sec- 

 tions in which no interest was shown prior to this year. In the 

 Pacific Northwest one warehouseman, operating a chain of 15 ele- 

 vators, another operating 68, and still another operating 112, ob- 

 tained licenses under the Federal act. In this same section a num- 

 ber of warehousemen operating one or two houses also became 

 licensed. There was also a substantial increase in the number of 

 licensed grain warehouses in Colorado. 



Factors which have contributed largely to the substantial progress 

 made during this year are: (1) The more general appreciation on 

 the part of bankers of the value of warehouse receipts issued under 

 the act for collateral purposes, (2) the insistence on the part of some 

 of the farmers' cooperative associations that their products should 

 be stored only with warehousemen who were Federally licensed, 

 and (3) the recognition accorded the Federallj'- licensed warehouse 

 receipt by the War Finance Corporation. 



The purpose of the warehouse act is to provide a credit instru- 

 ment for the farmer, so as to enable him to market his products in 

 orderly fashion. That the act can accomplish this purpose has been 

 amply demonstrated during the past year. Farmers' associations, as 

 well as individual farmers throughout the country, have secured 

 credit on favorable terms on warehouse receipts issued by the ware- 

 housemen licensed under the act. 



The high opinion of the War Finance Corporation of receipts 

 issued under the Federal act is shown by the fact that at no time 

 during its operation has it refused an application for a loan which 

 was to be supported by such receipts as collateral. 



