Page:United States Statutes at Large Volume 53 Part 1.djvu/223

 COTTON FUTURES volved in the contract, the price per pound at which such cotton is contracted to be bought or sold, the date of the purchase or sale, and the time when shipment or delivery of such cotton is to be made. (3) PROHIBITION OF DELIVERY OF OTHER THAN SPECIFIED GRADE.- Provide that cotton of or within the grade or of the type, or accord- ing to the sample or description, specified in the contract shall be delivered thereunder, and that no cotton which does not conform to the type, sample, or description, or which is not of or within the grade specified in the contract shall be tendered or delivered thereunder. (4) PROVISION FOR SPECIFIC PERFORMANCE.-Provide that the de- livery of cotton under the contract shall not be effected by means of "set-off" or "ring" settlement, but only by the actual transfer of the specified cotton mentioned in the contract. (b) INCORPORATION OF CONDITIONS IN CONTRACT. - The provisions of the first, third, and fourth paragraphs of subsection (a) shall be deemed fully incorporated into any such contract if there be written or printed thereon, or on the document or memorandum evi- dencing the same, at or prior to the time the same is entered into, the words "subject to Internal Revenue Code, section 1924." (c) APPLICATION OF SECTION.-This section shall not be construed to apply to any contract of sale made in compliance with section 1922 or section 1923. SEC. 1925. FORM AND VALIDITY OF CONTRACTS. (a) FORiM. -Each contract of sale of cotton for future delivery mentioned in section 1920 (a) of this chapter shall be in writing plainly stating, or evidenced by written memorandum showing, the terms of such contract, including the quantity of the cotton involved and the names and addresses of the seller and buyer in such contract, and shall be signed by the party to be charged, or by his agent in his behalf. If the contract or memorandum specify in bales the quantity of the cotton involved, without giving the weight each bale shall, for the purposes of this chapter, be deemed to weigh five hundred pounds. (b) VALIDITY.- No contract of sale of cotton for future delivery mentioned in section 1920 (a) of this chapter, which does not con- form to the requirements of subsection (a) and has not the neces- sary stamps affixed thereto as required by section 1920 (c) shall be enforceable in any court of the United States by, or on behalf of, any party to such contract or his privies. SEC. 1926. COTTON STANDARDS. (a) SOURCE AND DESCRIPTION.- Subject to the provisions of section 6 of the Act of March 4, 1923, 42 Stat. 1518 (U. S. C., Title 7, § 56), the Secretary of Agriculture is authorized, from time to time, to establish and promulgate standards of cotton by which its quality or value may be judged or determined, including its grade, length of staple, strength of staple, color, and such other qualities, properties, and conditions as may be standardized in practical form, which, for the purposes of this chapter shall be known as the "Official cotton standards of the United States": Provided,That any standard of any cotton established and promulgated under this chapter by the Secre- tary of Agriculture shall not be changed or replaced within a period less than one year from and after the date of the promulgation thereof by the Secretary of Agriculture: Provided further, That no change or replacement of any standard of any cotton established and promulgated under this chapter by the Secretary of Agriculture shall become effective until after one year's public notice thereof, which notice shall specify the date when same is to become effective. (b) PRACTICAL FORMS. - (1) PREPARATION, CERTIFICATION, AND DISTRIBUTION. -The Secre- tary of Agriculture is authorized and directed to prepare practical 213

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