this Act are extended to the island of Porto Rico; and such Federal land bank as may be designated by the Federal Farm Loan Board, is hereby authorized to establish a branch bank at such point as the Federal Farm Loan Board may direct on the island of Porto Rico. Loans made by such branch bank, when so established, shall not exceed the sum of $5,000 to any one borrower and shall be subject to the restrictions and provisions of this Act, except that such branch bank may loan direct to borrowers, and subject to such regulations as the Federal Farm Loan Board may prescribe the rate charged borrowers may be 111⁄2 per centum in excess of the rate borne by the last preceding issue of farm loan bonds of the Federal land bank with which such branch bank is connected: Provided, however, That no loans shall be made in the island of Porto Rico to run for a longer term than twenty years.

"Each borrower through such branch bank shall subscribe and pay for stock in the Federal land bank with which it is connected in the sum of $5 for each $100 or fraction thereof borrowed; such stock shall be held by such Federal land bank as collateral security for the loan of the borrower; shall participate in all dividends; and upon full payment of the loan shall be canceled at par and proceeds paid to borrower, or the borrower may apply the same to the final payments on his loan."

For sec. 4 of Act of July 17, 1916, as originally enacted, see 1918 Supp. Fed. Stat. Ann. 16.

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[Perishable farm products received in interstate commerce-certificate of quality and condition-prima facie evidence.] For enabling the Secretary of Agriculture to investigate and certify to shippers and other interested parties the quality and condition of fruits, vegetables, poultry, butter, hay, and other perishable farm products, when received in interstate commerce at such important central markets as the Secretary of Agriculture may from time to time designate, under such rules and regulations as he may prescribe, including payment of such fees as will be reasonable and as nearly as may be to cover the cost for the service rendered: Provided, That certificates issued by the authorized agents of the department shall be received in all courts of the United States as prima facie evidence of the truth of the statements therein contained,

This and the paragraph which follows are from the Agricultural Appropriation Act of March 3, 1921.

* * * [Bureau of Markets and Crop Estimates-powers and duties.] That hereafter the powers conferred and the duties imposed by law on the Bureau of Statistics and the Bureau of Crop Estimates of the Department of Agriculture shall be exercised and performed by the Bureau of Markets and Crop Estimates.

See note to preceding paragraph.

An Act To amend the first paragraph of section 20 of the Act of Congress approved July 17, 1916, known as the Federal Farm Loan Act, as amended by the Act of Congress approved April 20, 1920.

[Act of March 4, 1921.]

[Form of Farm Loan bonds-sec. 20 of Farm Loan Act amended.] That the first paragraph of section 20 of the Act of Congress approved July 17, 1916,

as amended by the Act of Congress approved April 20, 1920, be amended to read as follows:

SEC. 20. That bonds provided for in this Act shall be issued in denominations of $40, $100, $500, $1,000, and such larger denominations as the Federal Farm Loan Board may authorize; they shall run for specified minimum and maximum periods, subject to payment and retirement, at the option of the land bank, at any time after the minimum period specified in the bonds, which shall not be longer than ten years from the date of their issue. They shall have interest coupons attached, payable semiannually, and shall be issued in series of not less than $50,000, the amount and terms to be fixed by the Federal Farm Loan Board. They shall bear a rate of interest not to exceed 5 per centum per annum."

For sec. 20 as originally enacted, see 1918 Supp. Fed. Stat. Ann. 32.

For sec. 20 as amended by Act of April 20, 1920, see 1920 Supp. Fed. Stat. Ann. 4.

For further amendment affecting rate of interest, see Act of Aug. 13, 1921, set out on following page.

An Act To amend section 32 of the Act of Congress approved July 17, 1916, known as the Federal Farm Loan Act.

[Act of July 1, 1921.]

[Federal Farm Loan Act-land banks-government deposits - sec. 32 amended.] That section 32 of the Federal Farm Loan Act, approved July 17, 1916, as amended, is hereby amended by adding after the first paragraph a new paragraph to read as follows:

"Until such time as the aggregate paid-in capital stock of the twelve Federal land banks shall be $50,000,000, or more, the Secretary of the Treasury may in his discretion make deposits in addition to those authorized by the preceding paragraph, to be secured, redeemed, and paid in the same manner as provided in such paragraph, except that any additional deposit made hereunder shall be called by the Secretary of the Treasury and redeemed by the bank or banks holding the same, within fifteen days after the conclusion of each general offering of farm loan bonds by such bank or banks. The aggregate of such additional deposits outstanding at any time shall not exceed the difference between the aggregate paid-in capital stock of the twelve Federal land banks on the last day of the preceding month, and the sum of $50,000,000. The certificates of indebtedness issued to the Secretary of the Treasury by the Federal land bank for such additional deposits shall bear a rate of interest not exceeding by more than one-half of 1 per centum per annum the rate borne by the last bond issue of the land bank receiving such deposits."

Section 32 of the Federal Farm Loan Act, here amended, will be found in 1918 Supp. Fed. Stat. Ann. at p. 41.

Joint Resolution For the relief of States in the cotton belt that have given aid to cotton farmers forced from the fields in established nonproduction zones through efforts to eradicate the pink bollworm.

[Res. of Aug. 9, 1921, No. 12.]

[Eradication of pink bollworm-aid to cotton farmers-relief of states.] That when any State shall have enacted legislation and taken measures, includ

ing the establishment and enforcement of noncotton zones, adequate, in the opinion of the Secretary of Agriculture, to eradicate the pink bollworm in any area thereof actually infested, or threatened, by such pest, the said Secretary, under regulations to be prescribed by him, is authorized, out of the appropriation of $554,840 for "Eradication of pink bollworm "made by the Agricultural Appropriation Act of March 3, 1921, to utilize not to exceed $200,000 in reimbursing such States for expenses incurred by them in compensating any farmer for his loss due to the enforced nonproduction of cotton within said zones: Provided, That such reimbursement of any State shall be based upon the actual and necessary loss suffered by the owner of said land; that such reimbursement shall not exceed one-third the amount actually paid by the State to any farmer, and, in no event, shall exceed $5 per acre; and that no reimbursement shall be made in respect of any farmer who has not complied in good faith with all quarantine and control regulations prescribed by said Secretary of Agriculture and such State relative to the pink bollworm.

An Act To amend the Federal Farm Loan Act, as amended.

[Act of Aug. 13, 1921.]

[Federal Farm Loan Act-form of bonds - sec. 20 amended.] That the first paragraph of section 20 of the Federal Farm Loan Act, as amended, be, and hereby is, amended to read as follows:

"SEC. 20. That bonds provided for in this Act shall be issued in denominations of $40, $100, $500, $1,000, and such larger denominations as the Federal Farm Loan Board may authorize; they shall run for specified minimum and maximum periods, subject to payment and retirement, at the option of the land bank, at any time after the minimum period specified in the bonds, which shall not be longer than ten years from the date of their issue. They shall have interest coupons attached, payable semiannually, and shall be issued in series of not less than $50,000, the amount and terms to be fixed by the Federal Farm Loan Board. They shall bear a rate of interest not to exceed 52 per centum per annum, but no bonds issued or sold after June 30, 1923, shall bear a rate of interest to exceed 5 per centum per annum.'

The paragraph here amended, as it read prior to amendment, will be found in 1918 Supp. Fed. Stat. Ann. 32.

This paragraph of sec. 20 was previously amended by Act of March 4, 1921, set out supra, this title p. 4.

An Act Taxing contracts for the sale of grain for future delivery, and options for such contracts, and providing for the regulation of boards of trade, and for other purposes.

[Act of Aug. 24, 1921.]

[SEC. 1.] [Title of act"The Future Trading Act."] That this Act shall be known by the short title of "The Future Trading Act." SEC. 2. [Definition of terms "' contract of sale “grain "-"future delivery " "board of trade."] That for the purposes of this Act" contract of sale "shall be held to include sales, agreements of sale,

person

and agreements to sell. That the word " person" shall be construed to import the plural or singular and shall include individuals, associations, partnerships. corporations, and trusts. That the word " grain "shall be construed to mean wheat, corn, oats, barley, rye, flax, and sorghum. The term "future delivery." as used herein, shall not include any sale of cash grain for deferred shipment or delivery. The words " board of trade" shall be held to include and mean any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling grain or receiving the same for sale on consignment. The act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust within the scope of his employment or office shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust, as well as of such official, agent, or other person.

SEC. 3. [Tax on privilege or option relating to purchase or sale of grain.] That in addition to the taxes now imposed by law there is hereby levied a tax amounting to 20 cents per bushel on each bushel involved therein, whether the actual commodity is intended to be delivered or only nominally referred to, upon each and every privilege or option for a contract either of purchase or sale of grain, intending hereby to tax only the transactions known to the trade. as" privileges,' bids,' offers, puts and calls,"" indemnities," or " ups and downs."

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SEC. 4. [Tax on contract of sale of grain for future delivery - exceptions.] That in addition to the taxes now imposed by law there is hereby levied a tax of 20 cents a bushel on every bushel involved therein, upon each contract of sale of grain for future delivery except —

(a) [Owner or renter of land owner or grower of grain.] Where the seller is at the time of the making of such contract the owner of the actual physical property covered thereby, or is the grower thereof, or in case either party to the contract is the owner or renter of land on which the same is to be grown, or is an association of such owners, or growers of grain, or of such owners or renters of land; or

(b) [Contract made by or through member of board of trade designated as contract market."] Where such contracts are made by or through a member of a board of trade which has been designated by the Secretary of Agriculture as a contract market,' as hereinafter provided, and if such contract is evidenced by a memorandum in writing which shows the date, the parties to such contract and their addresses, the property covered and its price, and the terms of delivery, and provided that each board member shall keep such memorandum for a period of three years from the date thereof, or for a longer period if the Secretary of Agriculture shall so direct, which record shall at all times be open to the inspection of any representative of the United States Department of Agriculture or the United States Department of Justice.

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SEC. 5. [Designation of boards of trade as "contract markets"-conditions and requirements.] That the Secretary of Agriculture is hereby authorized and directed to designate boards of trade as contract markets " when, and only when, such boards of trade comply with the following conditions and requirements:

(a) [Location at terminal market.] When located at a terminal market upon which cash grain is sold in sufficient volumes and under such conditions as fairly to reflect the general value of the grain and the difference in value between the various grades of grain, and having recognized official weighing and inspection service.

(b) [Keeping of records.] When the governing board thereof provides for the making and filing, by the board or any member thereof, as the Secretary of Agriculture may direct, of reports in accordance with the rules and regulations, and in such manner and form and at such times as may be prescribed by the Secretary of Agriculture, showing the details and terms of all transactions entered into by the board, or the members thereof, either in cash transactions consummated at, on, or in a board of trade, or transactions for future delivery, and when such governing board provides, in accordance with such rules and regulations, for the keeping of a record by the board or the members of the board of trade, as the Secretary of Agriculture may direct, showing the details. and terms of all cash and future transactions entered into by them, consummated at, on, or in a board of trade, such record to be in permanent form, showing the parties to all such transactions, any assignments or transfers thereof, with the parties thereto, and the manner in which said transactions are fulfilled, discharged, or terminated. Such record shall be required to be kept for a period of three years from the date thereof, or for a longer period if the Secretary of Agriculture shall so direct, and shall at all times be open to the inspection of any representative of the United States Department of Agriculture or United States. Department of Justice.

(c) [Prevention of inaccurate reports.] When the governing board thereof prevents the dissemination, by the board or any member thereof, of false, misleading, or inaccurate report, concerning crop or market information or conditions that affect or tend to affect the price of commodities.

(d) [Prevention of manipulation of prices.] When the governing board thereof provides for the prevention of manipulation of prices, or the cornering of any grain, by the dealers or operators upon such board.

(e) [Admission to membership of representatives of associations of producers.] When the governing board thereof admits to membership thereof and all privileges thereon on such boards of trade any duly authorized representative of any lawfully formed and conducted cooperative associations of producers having adequate financial responsibility: Provided, That no rule of a contract market against rebating commissions shall apply to the distribution of earnings among the bona fide members of any such cooperative association.

(f) [Provision for making effective orders affecting trading, privileges of members, etc.] When the governing board shall provide for making effective the final orders or decisions entered pursuant to the provisions of paragraph (b) section 6 of this Act.

SEC. 6. [Application for designation as "contract market"- showing of compliance with requirements.] That any board of trade desiring to be designated a "contract market " shall make application to the Secretary of Agricul ture for such designation and accompany the same with a showing that it complies with the above conditions, and with a sufficient assurance that it will continue to comply with the above requirements.