BUREAU OF MARKETS. 463 



and investigations conducted in accordance with the approved pro- 

 gram of the bureau have .supplied valuable results and material for 

 use in this regulatory work. 



UNITED STATES COTTON FUTURES ACT. 



The cotton futures act was reenacted in a revised form on August 

 11, 1916. Kules and regulations under the revised act have been 

 issued as Circular 70 of the Office of the Secretary, and Service and 

 Regulatory Announcements Nos. 10 and 16 were issued to inform the 

 trade and others interested of the changes made in the act, of the 

 repromulgation of the Official Cotton Standards of the United States 

 for both white and colored cotton under the new act, and of other 

 pertinent matters. Mr. D. S. Murph has been designated by the 

 chief of the bureau to supervise the general administration of this 

 and of the warehouse act. 



INVESTIGATION OF FUTURE AND SPOT MARKETS. 



The work with future and spot markets has followed as closely 

 as possible the steps of the previous year, under the direction of Mr. 

 G. E. Argo, who has also been in charge of the disputes and appeals. 



The future exchanges at New York and New Orleans have made 

 the necessary revisions in their rules to conform with the reenacted 

 cotton futures law, effective September 1, 1916. 



All sales of spot cotton made in New Orleans have been examined 

 by a representative of the bureau, who has kept the bureau advised 

 of general conditions regarding cotton marketing in New Orleans. 

 Relations calculated to produce desirable cooperation have existed 

 throughout the year between the Department of Agriculture and the 

 future exchanges. 



A chart showing the fluctuations on the future exchanges has been 

 kept and with the exception of about three months, when a severe 

 break in the future market occurred, the parity between spots and 

 futures has been well maintained. It is believed that had not un- 

 usual and abnormal conditions existed, especially with reference to 

 the export situation, the future and spot markets would have righted 

 themselves much more quickly than they did. Because of these 

 unusual conditions, quotations for Middling cotton at times have been 

 quite at variance in many of the markets, but when all things are 

 considered, uniformity and proper parity have been remarkably well 

 maintained. 



DETERMINATION OF DISPUTES. 



There has been a decrease of more than 50 per cent in the number 

 of disputes heard as compared with the number heard during the 

 last fiscal year and a much larger decrease in the number of bales 

 involved in the disputes. Among the reasons for this decrease are the 

 excellent grade of cotton delivered on contract, the policy of for- 

 warding to Washington only the bales in a contract that were dis- 

 puted instead of the entire contract, and the unusual situation exist- 

 ing in the cotton trade. Only 8 of the 158 disputes received during 

 the year included all the bales of the delivered contract. No disputes 

 were received from New Orleans. 



