Futures Act Sustained

After the declaration by the U. S. Supreme Court that the original Capper-Tincher Bill to regulate grain exchanges was unconstitutional, it was revamped by Congress and again enacted. Appeal was again taken by the Chicago Board of Trade to the Supreme Court, which finally sustained the act in its amended form, on the grounds that dealings in grain futures possess an " interstate character."

The new law thus sustained forbids the use of the interstate mails, telegraph lines or other methods of communication to all grain exchanges not declared " contract markets " by the Secretary of Agriculture. To become a "contract market," a grain exchange has to agree to certain specified governmental restrictions, and in general to supervision by the Secretary of Agriculture. Already the Chicago Board of Trade has applied for designation as a " contract market."