Wall Street Farmer

One morning last week in a modest Manhattan office at No. 31 Nassau St. subscription books were opened for a $180,000,000 bond issue. By the afternoon of the next day the issue was sold, the books closed. With the same absence of fanfare, Charles R. Dunn, fiscal agent for the twelve Federal Land Banks, disposed of a $100,000,000 issue last December, one of $239,000,000 last June, another of $162,000,000 a year ago. Last week's offering brought the total of Federal Land Bank financing for the past twelve months to $681,000,000--largest non-Treasury fiscal operation of the past year.

In volume of business appearing over his name Charles R. Dunn ranks with the leading underwriting houses of the land. But Mr. Dunn is not a banker except by training. He risks no capital, gets no commissions, is paid a straight salary apportioned, along with his expenses and wages of his three employes, among the Land Banks he represents. He is also fiscal agent for the Federal Intermediate Credit Banks, which make short-term crop and marketing loans to farmers, has disposed of $1,800,000,000 of Intermediate Credit Bank debentures in the past seven years.

Born 56 years ago in New Market, N. J., Charles Dunn went to work at 17 as a wholesale grocery salesman, later learned all there was to know about the commercial paper business, was with the banking and commercial paper house of Bond & Goodwin in 1929 when Eugene Meyer, then Federal Farm Loan Commissioner, telephoned him from Washington. After that long-distance interview he became a fiscal agent, with his amazingly wide acquaintance among U. S. bankers, acquired in distributing commercial paper, as his most valuable asset. A large, plump, kindly man with close-cropped hair, Mr. Dunn raises prize roses at his home in Westfield, N. J. He can never remember their botanical names.

When he offers a big issue, Mr. Dunn's staff rises from four to as high as 35. The extra help is not paid. Friendly banks and bankers in Manhattan send around experts to assist him. Until last year Federal Land Bank issues were distributed by a syndicate headed by Baltimore's Alex. Brown & Sons. But the last four issues were taken directly by Mr. Dunn, though the same banking group still assists in distribution, is paid a straight commission for its sales & services.

Even with the current 3% coupons, Land Bank bonds are not hard to sell. Taxexempt, secured by first farm mortgages or Government bonds, they are joint and several obligations of all twelve Land Banks, which are supervised by the Farm Credit Administration. Unlike Home Owners' Loan Corp. bonds, Land Bank bonds are not Government-guaranteed. All recent Land Bank issues have been sold to refund outstanding bonds with higher coupons. And since by law the Land Banks may charge borrowers no more than 1% in excess of the rate at which they themselves are able to borrow, Mr. Dunn as the farmers' Wall Street agent is now providing mortgage money at 4%.

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