BUREAU OF MARKETS. 561 



of cotton warehouses has been shown, and, it is thought, is due to 

 the following facts : 



The Atlanta Federal Reserve Bank is actively encouraging ware- 

 housemen to become licensed and bonded under the United States 

 warehouse Act and a cooperative agreement has been entered into 

 with the Georgia State Bureau of Markets, whereby the State bureau 

 furnishes a free grading service to all licensed warehousemen who 

 desire it. The governor of the Federal reserve bank at Dallas has 

 recently taken an active interest in the act and is circularizing mem- 

 ber banks in his district in advocacy of the Federal system of ware- 

 houses. Very substantial reductions in the rates of fire insurance 

 on licensed warehouses have been granted by the various rating 

 bureaus in the South. In a majority of Southern States this reduc- 

 tion amounts to 25 per cent from the scheduled rates ; in other South- 

 ern States the reduction ranges from 25 per cent on certain classes of 

 warehouses to 10 per cent on others. Ten per cent is the minimum 

 concession. The Federal Farm Loan Board has approved forms of 

 receipts to be used under the regulations and steps have been taken 

 to secure like approval from tl ^ Federal Reserve Board. 



The bureau has cooperated ; s far as possible in view of limited 

 funds and personnel with the officials of the American Cotton As- 

 sociation, and many of them are encouraging the construction and 

 licensing of warehouses. An agreement was entered into with this 

 association, the State warehouse commissioner of South Carolina, and 

 the State extension service of South Carolina looking to the organiza- 

 tion of farmers' associations and among other things, the acquire- 

 ment of adequate cotton warehousing facilities in that State. 



In the last annual report, reference was made to cooperation be- 

 tween this bureau and the State of North Carolina in the operation 

 of its State warehouse law. Experience proved the necessity of cer- 

 tain amendments to this law, which, it is thought will be made in 

 the near future, and doubtless will result in the licensing and bond- 

 ing under the United States warehouse Act of all warehouses operated 

 under the State system. State officials in Alabama asked for the as- 

 signment of representatives of the bureau to that State for the pur- 

 pose of discussing the warehouse act with warehousemen and pro- 

 ducers and answering their inquiries, and although the pressure of 

 work did not permit full compliance with this request, numerous 

 applications for licenses were received and the State officials were 

 of the opinion that more would be received if their requests could 

 be met. 



Grain. — Regulations for grain warehouses were promulgated and 

 brought before the public in the late fall of 1919. Applications for 

 licenses have been received for 174 grain warehouses. Ninety-seven 

 persons have applied for licenses to inspect grain under the act and 

 122 persons have made applications to weigh grain under the act. At 

 the end of the fiscal year, 9 licenses had been issued and 50 ap- 

 plications had been approved, and licenses will be issued to those ap- 

 plicants as soon as the necessary bonds are received. In this con- 

 nection, it must be borne in mind that an inspector of this bureau 

 must personally examine the warehouse and the business methods and 

 accounts, as well as inquire into the finances and reputation, of each 

 warehouseman who files an application, before a license can be 

 issued. 



