REPORT OF THE SECRETARY OF AGRICULTURE. 9 



While the compulsory use of the official standards extends only 

 to contracts on future exchanges made subject to section 5 of the act, 

 they were accepted and used voluntarily in all the more important 

 spot markets and form the basis of their dealings. Demonstrations 

 of the use of the standards have been conducted among farmers in 

 many of the cotton-producing districts of the South, and arrange- 

 ments have been made to provide 125 county agents in that region 

 with reproductions of the standards. The interest in, and approval 

 of, the Official Cotton Standards is not confined to this country. 

 This is shown by the fact that the Rotterdam Cotton Exchange has 

 adopted them. 



As a result of the operation of the Cotton Futures Act, quotations 

 for spots and futures have maintained a steady relation to each 

 other. Future quotations now are better indications to the farmer 

 of the value of his commodity than formerly. This uniformity has 

 demonstrated the value of the future markets for legitimate hedging 

 purposes. It is clear, therefore, that the general purposes of the 

 act have been, and are being, accomplished. 



GRAIN STANDARDS AND WAREHOUSE ACTS. 



The Office of Markets and Rural Organization, in cooperation with 

 the Bureau of Plant Industry, has been charged with the duty of 

 administering the United States Grain Standards Act. Plans for 

 its enforcement have been developed as rapidly as possible. 



Official standards for shelled corn, effective December 1, 1916. were 

 issued on September 1. These standards consist of 6 grades each for 

 white corn, yellow corn, and mixed corn, and also a sample grade, 

 making 19 grades in all. As the inspection requirements of the act 

 are not operative as to any grain until standards for it have been 

 established thereunder, the supervision of inspection and grading 

 for the present will be confined to corn. Standards for wheat and 

 oats are in process of determination. Studies for the purpose of 

 securing the information necessary to establish standards for other 

 grains, including the grain sorghum?, are under way. 



Tentative rules and regulations for the enforcement of the act 

 were published and distributed on October 14, 1916, and all interested 

 parties were given an opportunity to make suggestions concerning 



