Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-27
Washington Ticker
BY CLINTON COFFIN,

Associated Press FINANCIAL Writer.
Public appetite for investment in
securities having been more than or
dinarily upset by stock market declines
of the last month, it is not at all sur
prising now to note q decided increase
in the demand for standard, arabic
farm land over better farming sections
of the United States. It so happens
that the Federal Land Bank system,
a Government agency, in connection
with its mortgage loans Of about 81
O0O, GOO, 900 now outstanding, has had
through its regional banks to take over
q large amount Of developed farm prop
erty because Of failure Of owners to
meet loan liabilities during recent years,
and keeps continual touch with the
farm land market In consequence.
This week one of the dozen regional
land banks composing the system noti-
fed Paul Bestor, Federal Farm Loan
the last month to sell 100000 worth
of its farm realty, or three times as
much as it had been able to market in
any single previous month for a year.
The same trend Is evidenced, the COM
missioner added, by q pickup of farm
land sales reported in several other re-
gions, so that the tendency can fairly
be deemed national. Little doubt is
felt but that the rather decided move
toward farm realty investing can be
considered one OF the reactions from
the prolonged period Of security spec
ulation, and there Is some chance that
the farm land selling ability now shown
by the loan banks marks the beginning
If an era when advantages of land hold
ing will get more attention than 1t has
had recently in the United States.
Sudden recession Of interest rate
levels In the great commercial centers,
now In progress, may also work out II
maintained to stimulate the i1acipient
moment the Federal Loan Boards con-
dition does not seem to indicate i'm.
mediate steps for new financing
The land bank system borrowS through
bondS-when IL can-at or AZ per
cent, and releoans through regional
banks to farmers on mortgage at about
per cent above the bond rate. But
for months Il has sold no bonds, partly
because the regional banks have been
able to meet all the demands for new
loans out Of payments coming In from
have been buying back their bonds to
the extent Of $1,000, 600 or so, at dis
counts ranging to 10 per cent below
par. Now, with bond prices rising, the
bank Arrangements feel they will f1d
themselves in considerably strengthened
condition, and rather, well able to meet
any increasing rural demand for loans
on mortgage, A probability that federal
ly guaranteed bonds on q low interest
base can be readily marketed is implied
by all the financial indtces, and the
farm owner and borrower win get the
advantage Of the situation along with
others.
Through coaSt-to-coast passenger fly
ing service as operated by the Trans
continental Air Transport In conjunction
with the Pennsylvania and Santa Fe
systems has failed to get stimulus from
the recent 40 per cent cut inaugurated
in its fares: Executives Of the enter
prise are studying the AdviSabtltty OF
installing much more frequent local
service between points on its main
trunk. The proposal Is pending before
directors of the transport company, and
will get Q decision shortly.
1T Still remains IN undecided Ques-
ton as to whether there Is . demand
for long-distanee passenger service
across this continent which can be
derson, operating vice president Of the
transport company, "and the extensive
organization we have built up to expert
ment with 1t can carry additional local
service that may at modern needs to q
great extent. For instance, we now
have but one plane each a. hours be-
tween Columbus, Ohio, and Kansas
City, where, q two-hour service might
create considerable air travel.
IF the program for testing out the
great local service is approved we shall
have the Winter to get It. In readiness
and will need about $1,000, 900 worth
Of new planes"
While scheduled trips on the trans
continental route have been made with
automatic regularity lately, the trafic
has dropped far below capacity, and
anticipated operating losses have in
n~AaeAl