Out of 143,000 farm families in the district which he was studying, Mr.
found that 73 per cent, were In debt during 1936, on, increase of 2 per cent, over 1935, That means that Just one of China's 2,000 districts. over 100,000 farmers are in debt, The men responsible for this condition, those who "grasp the artery" (stray gle the farmer), are the landlords and gentry who are making their living on moneylending. As the provincial silver is drawn t6 Chengtu and Chungking, and the farmers Rrow more desperate, interest rates urow higher.
In, 1932 the average rate through out the province was 25 per cent. a yenr; today it is from 40 to 60 per feet. depending upon the district, and Individual villages may run to '1,000 per cent. The number of profes sional usurers is steadily growing. In the town of Pahsien a survey reveal 700 men whose total income is from money lending, 'Yet Pahsion is aclty on a main highway, where interest rates should not be' high The most Insidious Toan method is called the "somersault," because it Keeps rolling over and' over til the farmer is in a hopeless condition A farmer borrows from his landlord the sum of ten dollars, agreeing to pay from to 10 cents, depending upon terms, every market day (hree-day intervals). "These payments are the Interest rate, and continue forever, until the '$10 has been repaid in, a lump. The surplus interest never applies on the prineipte, Guarantor Meats Obligations The borrowing of food in a hard winter is very common, this also being controlled by the money lenders, Such loans as the "nine out and thirteen back," or the "return a pair" loan clearly indicate their nature. The late Lu Hsun, eminent Chinese short story writer, tells a tale of a farmer in this same district which the writer investigated. A farmer before the harvest borrowed tan of rice. when the price was) $15, agreeing' to repay the loan in kind the following February.
Winter prices happened to be low, only $0 tan, and the money lender demanded three tan instead of one. The farmer could pay but one since the tax collectors took all the rest, 40 he begged the Uusurer to take three and one half tan in April. In. April the price had risen to $13, or $48 for the amount owed. Crops were ruined by a drought, and this time the farmer agreed 10 pay 5 per cent interest on this $46 debt, offering two mow of land as security. Thus, from borrowing a single tan of rice to last out a winter he was plunged into debt for years, and probably on the road t6 bankruptey.
Text read from the printed page and cleaned; old type leaves the occasional error.