TABLE OF CONTENTS CHAPTER 14. -C OTTON FUTrRES Sec. 1920. Tax. Sec. 1921. Exemption of spot cotton. Sec. 1922. Exemption of basis grade contracts. Sec. 1923. Exemption of tendered grade contracts. Sec. 1924. Exemption of specific grade contracts. Sec. 1925. Form and validity of contracts. Sec. 1926. Cotton standards. Sec. 1927. Bona fide spot markets. Sec. 1928. Collection and enforcement. Sec. 1929. Penalties. Sec. 1930. Immunity of witnesses. Sec. 1931. Definitions. Sec. 1932. Liability of principal for acts of agent. Sec. 1933. Reports of Secretary of Agriculture. Sec. 1934. Other laws applicable. Sec. 1935. Operation of State laws. CHAPTER 14-COTTON FUTURES SEC. 1920 . TAX. (a) RATE. -U pon each contract of sale of any cotton for future de- livery made at, on, or in any exchange, board of trade, or similar institution or place of business, there shall be levied a tax in the nature of an excise of 2 cents for each pound of the cotton involved in any such contract. (b) By WHOM PAID. - The tax imposed by subsection (a) shall be paid by the seller of the cotton involved in the contract of sale. (c) How PAID.- The tax imposed by subsection (a) shall be paid by means of stamps which shall be affixed to such contracts, or to the memoranda evidencing the same, and canceled in compliance with rules and regulations which shall be prescribed by the Secretary of the Treasury. (d) CRoss REFERENCE. - For authority of the Secretary of the Treasury to promulgate rules and regulations for the collection of the tax, see section 1928 (a). SEC. 1921 . EXEMPTION OF SPOT COTTON. This chapter shall not be construed to impose a tax on any sale of spot cotton. SEC. 1922. EXEMPTION OF BASIS GRADE CONTRACTS. (a) CONDrrIONS.- No tax shall be levied under this chapter on any contract of sale mentioned in section 1920 (a) if the contract comply with each of the following conditions: (1) CONFORMITY WITH SECTION 1925 (A) AND REGULATIONS.-Con- form to the requirements in section 1925 (a) of, and the rules and regulations made pursuant to, this chapter. (2) SPECIFICATION OF GRADE, PRICE, DATES OF SALE AND SETTLE- MENT. - 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 prohib- ited from being delivered on a contract made under this section by the fifth paragraph of this subsection, 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, 210
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