Within the last few years there are hundreds who have embarked in agricultural enterprises with only one-tenth of the capital necessary to make them successful. A man would start planting with only a few hundred pesos and a tract of cleared land, without title-deeds, and consequently of no negotiable value. In the first year he inevitably fell into the hands of money-lenders, who reasonably stipulated for a very high rate of interest in view of the absence of guarantees. The rates of interest on loans under such circumstances varied as a rule from 12 to 24 per cent. I know a Visayo native who, by way of interest, commission, and charges, demanded as much as 30 per cent. I need not refer to the isolated cases which have come to my knowledge of over 100 per cent. being charged. As at the present day agriculture in the Philippines does not yield 30 per cent. nett profit, it naturally follows that the money-lender at this rate has to attach the estate upon which he has made loans, and finally becomes owner of it. In the meantime, the tiller who has directed the labour of converting a tract of land into a plantation, simply gets a living out of it. Some few were able to disencumber their property by paying, year by year, not only the whole of the nett returns from the plantation, but also the profits on small traffic in which they may have speculated. It seldom happened, however, that the native planter was sufficiently loyal to his financial supporter to do this: on the contrary, although he might owe thousands of pesos, he would spend money in feasts, and undertake fresh obligations of a most worthless nature. He would buy on credit, to be paid for after the next crop, a quantity of paltry jewellery from the first hawker who passed his way, or let the cash slip out of his hands at the cock-pit or the gambling-table. Even the most provident seemed to make no reserve for a bad year, and the consequence was that in 1887 I think I may safely assert that if all the Philippine planters had had to liquidate within twelve months, certainly 50 per cent. of them would have been insolvent. One of the most hazardous businesses in the Colony is that of advancing to the native planters, unless it be done with the express intention of eventually becoming owner of an estate, which is really often the case.