It would indeed seem that with interest at the rate of 120 per cent per year and the creditor in a position to fix his own price for food, clothing and other necessaries furnished his debtors while they were trying to work out their debts, they would not be likely to succeed in doing so!
In this connection I call attention to the fact that in the course of the discussion recently caused by requests for the resignation of certain public officials who had been loaning money at usurious rates of interests, several of the native papers took the attitude that 18 per cent per year was a very moderate rate of interest.
If the unfortunate peon finally rebels, the rich cacique often invokes the law against him by having him prosecuted on some false criminal charge.
In this connection the following letter is of interest:—
“Philippine Constabulary,
“Office of the Senior Inspector,
“Pampanga, San Fernando, September 26, 1912.
“The Superintendent, Information Division, P. C.,
“Manila, P. I.
“(Thru’ Adjutant, District of Central Luzón.)
“Sir: Reference to the prosecution of Maria Guzman before the Justice of the Peace of Apalit for ‘Infraction of Law 2098’ (your file No. 8634–75) I have the honour to attach copy of decision in the case, and remarks:—
“About three (3) years ago Simeon de los Reyes, by and with the consent of his wife Maria Guzman, borrowed and signed receipt for fifty pesos (₱50) to Maria Santos of Apalit, contracting that his wife work out the debt moulding earthen jars—that for every hundred jars made Maria Guzman received ₱1, 25 centavos of which was to go on the debt. The woman states she could make about fifty jars per week, so that her actual wages were 50 centavos per week, or $.005 per jar. This without board, as the woman states that any money she got for food was charged on original debt.
“By the first part of this year the debt had ‘decreased’ to ₱70, when another receipt for that amount was signed by the husband, de los Reyes, and the old receipt for ₱50 destroyed. In the month of August ultimo the Santos woman refused to advance Maria Guzman more money, so Maria Guzman left and joined her husband, who was working in Manila. The debt at time of trial amounted to ₱79 and a fraction.