Cotton Futures Act

{{Short description|United States federal law}}

{{Infobox U.S. legislation

| shorttitle = Cotton Futures Act

| othershorttitles = Cotton Futures Act of 1914

| longtitle = An Act to tax the privilege of dealing on exchanges, boards of trade, and similar places in contracts of sale of cotton for future delivery, and for other purposes.

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| enacted by = 63rd

| effective date = August 18, 1914

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| cite public law = {{USPL|63|174}}

| cite statutes at large = {{usstat|38|693}}

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| title amended = 7 U.S.C.: Agriculture

| sections created = {{Usc-title-chap|7|1}} § 15b

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| introducedin = Senate

| introducedbill = {{USbill|63|S.|110}}

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| committees = House Agriculture Committee, Senate Agriculture and Forestry Committee

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| conferencedate = July 27, 1914

| passedbody3 = Senate

| passeddate3 = July 27, 1914

| passedvote3 = [http://www.govtrack.us/congress/votes/63-2/h168 146-77]

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| passedbody4 = House

| passeddate4 = July 27, 1914

| passedvote4 = passed

| signedpresident = Woodrow Wilson

| signeddate = August 18, 1914

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The Cotton Futures Act of 1914 (also known as the Smith-Lever law) authorized the United States Department of Agriculture to establish physical standards as a means of determining color grade, staple length and strength, and other qualities and properties for cotton.{{Cite journal |last=Hoffmann |first=I. Newton |date=1915 |title=The Cotton Futures Act |url=https://www.journals.uchicago.edu/doi/10.1086/252663 |journal=Journal of Political Economy |language=en |volume=23 |issue=5 |pages=465–489 |doi=10.1086/252663 |issn=0022-3808|url-access=subscription }}{{Cite journal |last=Conant |first=Luther |date=1915 |title=The United States Cotton Futures Act |url=https://www.jstor.org/stable/71 |journal=The American Economic Review |volume=5 |issue=1 |pages=2–11 |issn=0002-8282}} It was intended to minimize speculative manipulation of the cotton market.

The Act was rendered unconstitutional in Federal district court because it originated in the Senate. As a revenue act, it should have been drafted in the House. It was replaced by the Cotton Futures Act of 1916.{{cite book |last1=Markham |first1=Jerry W. |title=A Financial History of the United States |date=2002 |publisher=M.E. Sharpe |page=96 |url=https://books.google.com/books?id=YRjmQLOscGoC |accessdate=19 January 2020}}