172 Als^NUAL REPORTS OF DEPARTMENT OF AGRICULTURE. 



DIVISION OF WAREHOUSING. 



H. S. YoHE, In Charge. 



Grain Warehousing, H. K. Holiuan, jr. ; Wool Wareliousinff, C. Nagel ; Tobacco 

 Wareliousing and Standardization, F. B. Williinson. 



The year 1923 marked the greatest progress in the licensing of pub- 

 lic warehousemen under the United States warehouse act for tlie stor- 

 age of agricultural products since its passage in 1916. 



During the past fiscal year the licensed capacity of cotton ware- 

 houses increased from 1,210,000 bales to 2,639,200 bales, grain from 

 14,450,000 bushels to 20,297,047 bushels, wool from 27,500,000 pounds 

 to 32,100,000 pounds, tobacco from 68,400,000 pounds to 219,475,000 

 pounds. Thus the licensed capacity for cotton has been more than 

 doubled; the tobacco capacity has been more than trebled. A sub- 

 stantial increase has also been made in the licensed grain-storage 

 capacity. 



Much of the progress made is attributable to the attitude taken 

 by growers' cooperative associations and bankers toward receipts is- 

 sued under the law. A number of cotton and tobacco growers' co- 

 operative associations adopted rules that they would not place cot- 

 ton or tobacco with any warehousemen unless they were licensed by 

 the department. The attitude of bankers is shown in the following 

 resolution adopted on June 25, 1923, by the New Orleans Clearing 

 House Association: 



Resolved, That the New Orleans Clearing House Association, recognizing that 

 Federal bonded warehouse receipts are preferable for collateral purposes, and 

 that the safeguards offered by the Federal warehouse system through its selec- 

 tion in admitting warehouses into the system, its supervision and inspection 

 of warehouses, and the bonded responsibility of the warehousemen are to the 

 interest of financial institutions handling warehouse collateral as well as the 

 patrons of such warehouses, including producers and merchants, hereby ex- 

 presses itself as favoring the licensing of warehouses under the United States 

 warehouse act and urges upon warehousemen in the State of Louisiana to 

 operate their warehouses under this statute. 



Similar resolutions were adopted by other clearing-house associa- 

 tions. The Federal Farm lioan Board, in administering the inter- 

 mediate farm credits act of 1923, in its preliminary rules and regula- 

 tions included a rule reading as follows : 



Intermediate credit banks will accept the receipt of any warehouse licensed 

 and bonded under the Federal warehouse act. 



WAREHOUSING AS AN AID IN COOPERATIVE MARKETING. 



The formation of cooperative growers' associations, the War 

 Finance Corporation, the Federal intermediate credits act, and the 

 attitude of large banks are all encouraging the producer to hold his 

 crops for a longer period after harvesting and thus encouraging 

 more orderly marketing. The Federal warehouse act has clearly 

 demonstrated its value in this movement. 



The supervisory work of the department in administering this law 

 is proving of value to patrons of the warehouses as well as to insur- 

 ance interests, as evidenced by the fact that during the j^ear the 

 imderwriting associations in the Pacific Coast States have extended a 

 credit of 10 per cent in insurance rates on both the warehouses and 

 the contents stored therein. 



