Catholic Church Claims And Proposed Agricultural Bank in the Philippine Islands. [hearings, Jan. 7-10, 1907]

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therefore, be that they will be just as conservative in making loans as any other concerns would be? If we compel them to charge a fixed rate of interest, will not the results be that we will put the screws onto these people so that they will get nothing out of the bank at all?
Mr. Jenks. With the rate of interest that is suggested here, of 10 per cent, it will beyond any question be profitable to the bank to make loans in very small sums to the poorer cultivators whenever their securities are
...satisfactory.
Mr. Olmsted. Would you propose to secure these loans on the draft animals, or on the crops, in the nature of chattel mortgages ?
Mr. Jenks. That might be taken on the smaller loans. On sums of $100 and less security of that nature might be accepted.
Mr. Olmsted. But if the rinderpest should take away the cattle the security would then go out from under the loan. You would not expect the bank to lend money on that class of security at as low a rate of interest as on a first mortgage on a farm ?


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