4 ANNUAL REPORTS OF DEPARTMENT OF AGRICULTURE. 



important laws — the Cotton Futures Act, the United States Grain 

 Standards Act, the United States Warehouse Act, the Federal Farm 

 Loan Act, and the Federal Aid Road Act. 



Under the Cotton Futures Act, which was enacted on August 18, 

 1914, and reenacted with amendments in the Agricultural Appro- 

 priation Act for the fiscal year 1917, standards for cotton have been 

 established, the operations of the futures exchanges have been su- 

 pervised, and cotton trading has been placed on a sounder basis. 



The United States Grain Standards Act, which is included in the 

 Agricultural Appropriation Act for the fiscal year 1917, will bring 

 about uniformity in grading, enable the farmer to obtain a fairer 

 price for his product and to improve its quality, and prevent or 

 diminish materially the shipment of adulterated grain. 



The United States Warehouse Act, also included in the Agricul- 

 tural Appropriation Act for 1917, authorizes the Department of 

 Agriculture to license bonded warehouses which handle certain agri- 

 cultural products. It will make possible the issuance of reliable and 

 easily negotiable warehouse receipts, promote the better storing of 

 farm products, and encourage the standardizing of storages and of 

 marketing processes. 



The Federal Farm Loan Act was approved on July 17, 1916. It 

 creates a banking system which will reach intimately into the rural 

 districts, operate on terms suited to the farmer's needs under sympa- 

 thetic management, introduce business methods into farm finance, 

 bring order out of chaos, reduce the cost of handling farm loans, 

 place upon the market mortgages which will be a safe investment for 

 private funds, attract into agricultural operations a fair share of the 

 capital of the Nation, and lead to a reduction of interest. 



A provision in the Federal Reserve Act, which was approved on 

 December 23, 1913, authorized national banks to lend money on farm 

 mortgages and recognized the peculiar needs of the farmer by giving 

 his paper a maturity period of six months. 



The Federal Aid Road Act, approved July 11, 1916, provides for 

 cooperation between the Federal Government and the States in the 

 construction of rural post roads and of roads and trails within or 

 partly within the National Forests. This measure will conduce to 

 the establishment of a more effective highway machinery in each 

 State, strongly influence the development of good road building along 

 right lines, stimulate larger production and better marketing, pro- 



