MARKET METHODS AND PROBLEMS 507 



nature of an excise of 2 cents for each pound of the cotton involved 

 in any such contract. 



SEC. 4. [Contract must be in writing, showing terms of contract, 

 names and addresses of the parties, and quantity of cotton.] 



SEC. 5. That no tax shall be levied under this Act on any con- 

 tract of sale mentioned in section three hereof, if the contract comply 

 with each of the following conditions: 



First. Conform to the requirements of section four of, and the 

 rules and regulations made pursuant to, this Act. 



Second. Specify the basis grade for the cotton involved in the 

 contract, which shall be one of the grades for which standards are 

 established by the Secretary of Agriculture except grades prohibited 

 from being delivered on a contract made under this section by the 

 fifth subdivision of this section, the price per pound at which the 

 cotton of such basis grade is contracted to be bought or sold, the date 

 when the purchase or sale was made, and the month or months in 

 which the contract is to be fulfilled or settled: Provided, That middling 

 shall be deemed the basis grade incorporated into the contract if no 

 other basis grade be specified 



Third. Provided that the cotton dealt with therein or delivered 

 thereunder shall be of or within the grades for which standards are 

 established by the Secretary of Agriculture 



Fourth. Provide that in case cotton of grade other than the 

 basis grade be tendered or delivered in settlement of such contract 

 the differences above or below the contract price which the receiver 

 shall pay for such grades other than the basis grade shall be the actual 

 commercial differences determined as hereinafter provided. 



Fifth. [Cotton that is below the grade of Good Ordinary or, if 

 tinged, cotton that is below Low Middling, or, if stained, cotton that 

 is below Middling, or cotton that is less than seven-eighths of an inch 

 in length of staple, or cotton of perished staple or of immature staple, 

 "gin cut" or reginned, "repacked," "false packed," "mixed packed," 

 or "water packed" shall not be delivered in settlement of such con- 

 tract.] 



Sixth. [Deliver full number or weight of bales called for, five 

 days' written notice of date of delivery, written certificate of grade 

 of each bale, identifying marks, etc.] 



Seventh. [Disputes settled by Secretary of Agriculture.] 



SEC. 6. That for the purpose of section five of this Act the differ- 

 ences above or below the contract price which the receiver shall pay 



