4268 Prels 9/1/03 12:59 pm Page vii Chapter Title vii 1 2 3 LIST OF CONTRIBUTORS 4 5 6 7 8 Howard Bodenhorn Department of Economics, 9 10111 Lafayette College, USA 11 12 13 Stanley L. Engerman Department of Economics, 14 University of Rochester, USA 15 16 17 Giovanni Federico Dipartimento di Storia Moderna, 18 University of Pisa, Italy 19 20111 21 Ingrid Henriksen Institute of Economics, 22 University of Copenhagen, Denmark 23 24 25 John E. Murray Department of Economics, 26 University of Toledo, USA 27 28 29 Solomos Solomou Faculty of Economics and Politics, 30111 University of Cambridge, U.K. 31 32 33 34 Weike Wu Business Statistics Department, 35 Ecclesiastical Insurance, U.K. 36 37 38 39 40111 vii 4268 Prels 9/1/03 12:59 pm Page ix 1 2 3 EDITOR 4 5 Kyle D. Kauffman 6 Department of Economics, Wellesley College, USA, and 7 W.E.B. DuBois Institute, Harvard University, USA 8 9 10111 EDITORIAL BOARD 11 12 13 Lee J. Alston Francesco Galassi 14 Department of Economics, Department of Economics, 15 University of Colorado, USA University of Warwick, USA 16 17 Jeremy Atack Michael Turner 18 Department of Economics, Department of Economics & 19 Vanderbilt University, USA Social History, 20111 University of Hull, U.K. 21 Lou Ferleger 22 Department of History, 23 24 Boston University, USA 25 26 27 EDITORIAL ASSISTANT 28 29 Patricia A. Sjostedt 30111 Wellesley College, USA 31 e-mail: [email protected] 32 33 34 35 36 37 38 39 40111 ix 4268 Prels 9/1/03 12:59 pm Page xi Preface xi 1 2 3 INTRODUCTION 4 5 6 7 8 Issues surrounding agriculture have always had pride of place among academic 9 research in economic history. Interest in agricultural issues does not seem to 10111 come into fashion, and then fade into the background only to return years later. 11 Indeed, agriculture was so vital to the workings of historical economies that a 12 steady stream of important scholarship continues to be produced. 13 Beyond its importance of being a record of the past, it is clear that much of the 14 research in this area has important policy implications for both developed and 15 16 developing countries. This type of work highlights an important facet of doing 17 such historical research: learning from the past so as to understand better the world 18 today. Several articles contained in volume two of Advances in Agricultural 19 Economic History either implicitly or explicitly have lessons or policy implica- 20111 tions for today. 21 Volume two of AAEH, like volume one, contains important new work by 22 both established and young academics. Additionally, this recent volume reflects, 23 both geographically and methodologically, the broad scope of cutting edge work 24 being done in this area. It is this type of scholarship that we seek to publish 25 in future issues. We invite scholars who work in all areas of agricultural history 26 to submit their work for publication in future volumes of AAEH. 27 28 29 Kyle D. Kauffman 30111 Editor 31 32 33 34 35 36 37 38 39 40111 xi 4268 Ch01 9/1/03 1:00 pm Page 1 1 2 3 GREAT DISAPPOINTMENTS: 4 5 THE LESSONS FROM NINETEENTH 6 7 CENTURY TRANSITIONS FROM 8 9 SLAVERY TO FREE LABOR 10 11 12 13 Stanley L. Engerman 14 15 16 17 18 I. 19 20 This paper will focus on a relatively narrow set of transitions in property rights 21 in humans, with or without changes in political controls, in the nineteenth 22 century, especially the decline and complete elimination of slavery in the 23 Americas.1 There was a shift from legally coerced labor to legally free labor, 24 although with some variations and constraints in the timing of the emancipation 25 and in the extent of freedom that was granted. The transition of property rights 26 in people who now owned themselves after having previously been owned by 27 others has led to numerous discussions and debates, both at the outset with 28 concern about expected impacts, and subsequently in evaluating their conse- 29 quences in historical perspective and attempting to reach some judgement as to 30 whether and to what extent the transition was (or was not) a good thing. 31 As with other great reforms, the emancipation of the slaves in most parts of 32 the world aroused high expectations, but ended with a major sense of disap- 33 pointment about what had been accomplished. Expectations were high as to the 34 expected effects upon not only the ex-slaves but also upon other members of 35 society, who were also expected to gain. Disappointment was widely spread 36 37 38 Advances in Agricultural Economic History, Volume 2, pages 1–20. Copyright ©2003 by Elsevier Science Ltd. 39 All rights of reproduction in any form reserved. 40 ISBN: 0-7623-1001-4 1 4268 Ch01 9/1/03 1:00 pm Page 2 2 STANLEY L. ENGERMAN 1 among groups in society, since ex-slaves, ex-slave owners, and other members 2 of society all believed that emancipation had failed to achieve most of its 3 promised ends, and that considerably more remained to be done if society were 4 to ever be able to receive the expected benefits. The different expectations, and 5 times required to achieve the desired ends, meant that different short-term, as 6 well as long-term, policies were desired by the different parties, pointing to a 7 major difficulty in evaluating the response to emancipation. Nevertheless, the 8 fact that few individuals seemed satisfied with the outcome of emancipation, 9 suggests that perhaps the outcomes were mixed, with no one getting all they 10 had hoped for, yet each getting some desired benefits. 11 12 II. 13 14 To better understand the transitions in the labor force institutions in the 15 nineteenth century, it is useful to consider previous changes that have occurred 16 in Western Europe and its colonies. The late eighteenth and the nineteenth 17 century saw dramatic declines in those forced labor systems that had charac- 18 terized previous developments in Europe’s overseas colonies.2This did not mark 19 the universal disappearence of slavery, since it continued to exist within Africa 20 and Asia for several decades into the twentieth century.3 Nor did it mean the 21 ending of all forms of coerced labor even within Europe and its colonies, since 22 there were continued shipments of convict labor to settle in Australia and other 23 parts of the Pacific. The nineteenth century also saw the re-emergence of inden- 24 tured labor in many parts of the world. Nevertheless, a large number of 25 individuals had obtained some freedom, with an ability to relocate intra – as 26 well as internationally. Most of the emancipations were accomplished with 27 struggle and debate but, with the major exceptions of the United States and of 28 Haiti, all were accomplished relatively peacefully, relying on political, not mili- 29 tary, measures. Some transitions were more chaotic than others, based in part 30 on the events in the years preceding emancipation or the initial difficulties of 31 adjusting to the new system. 32 There were a number of different variations in the process of emancipation, 33 based upon the changes in the ability to legally or quasi-legally control and 34 influence the productivity of ex-slaves and in the allowances provided the former 35 slaveowners (and serflords) as compensation, whether in the form of cash, 36 bonds, or alloted labor time, and whether this compensation was paid for by 37 the state and the taxpayers or by those previously enslaved or enserfed.4 38 Legislation regarding access to land and other forms of labor influenced the 39 ability to move and to seek new jobs, but in general these emancipations 40 did add some flexibility to individual behavior in the economy. It was also 4268 Ch01 9/1/03 1:00 pm Page 3 Great Disappointments 3 1 anticipated that a more effective labor input due to emancipation would have 2 a favorable impact on the prospects for long-term economic development. Thus 3 the transition was expected not only to lead to a new economic structure within 4 society, but, as argued for in the legislation, it was believed that this would 5 represent progress relative to the preceding condition, for both those freed and 6 for others in the nation. 7 It should not be expected that the same legal changes would generate 8 the same outcomes in all societies. The effects varied with, for example, the 9 magnitude of the property value transferred, the relative importance of coerced 10 labor in the total labor force, the relative importance of different agricultural 11 crops and manufacturing outputs, the conditions of production for different 12 commodities, and the internal and world market conditions in regard to 13 different outputs, to point out the major economic variables, as well as with 14 more general and social policies. Attitudes concerning differences in races and 15 ethnicities involved in the emancipations also had an important impact on the 16 range of transition possibilities. The economic conditions at the time of 17 transition also had a significant impact on the nature of the adjustment to the 18 new systems, with implications for the problems with the initial changes after 19 emancipation. The ending of slavery in different parts of the New World took 20 place when the systems were expanding economically, not declining, meaning 21 that slavery’s ending was more expensive, and its adherents less willing to see 22 it end than earlier views of contemporaries and scholars had suggested. As 23 indicated in the contemporary debates and, more importantly, by the rising 24 trend in slave prices, slavery was expanding during the nineteenth-century, and 25 was seemingly expected to continue into the indefinite future.5 26 This expansion reflected the increasing European and American demand for 27 slave-produced commodities such as sugar, cotton, and coffee, the improved 28 means of production made possible by the development of new methods and 29 technologies of production, and also the transport developments that permitted 30 the use of new, more fertile, soils. Thus the ending of slavery occurred at times 31 of favorable economic conditions. This might be expected to provide for a 32 smoother transition, although the prosperity under slavery would highlight any 33 reductions in output that took place as a result of changing labor institutions. 34 35 III. 36 37 In no case, with the exception of Haiti, did the transition from slavery begin 38 with a complete collapse of the social system, and in that case the collapse was 39 due not to economic factors but rather to a massive slave uprising.6 In all other 40 cases the ending of slavery came by governmental decree or legislation. This 3 4268 Ch01 9/1/03 1:00 pm Page 4 4 STANLEY L. ENGERMAN 1 sometimes was due to, or enforced by, political change and military actions, as 2 was the case with the ending of slavery in the United States as a result of the 3 Civil War. In some cases the legislation followed rather quickly after successful 4 revolutions, as was the case with some of the American nations when achieving 5 independence from their European metropolis, as was the case with the northern 6 states of the United States in the late eighteenth century and the several nations 7 of South and Central America that gained their independence from Spain in the 8 early nineteenth century. In only a few cases, none major, was there a widescale 9 ending of a coerced labor system by a voluntary freeing of the laborers by their 10 owners. The nature and terms of legislations for emancipating labor often 11 differed, as did the form of legal actions taken to impose and enforce the 12 changes, and this led to some differences in the ensuing transitions. 13 The legislation and political actions leading to the ending of systems of 14 coerced labor, and the precise changes in the nature of property rights in 15 laborers, as defined by nations, did not follow a uniform pattern. When labor 16 was freed, their previous owners generally suffered a loss in wealth, due both 17 to the ending of property rights in the surplus produced by slaves, and also 18 because of the probable decline in land values with the fall in labor input.7 In 19 some cases compensation, in cash or bonds, was paid to owners, while in other 20 cases the returns to the slaveowners were supplemented by a period of compelled 21 labor or apprenticeship. In some examples of gradual emancipation, new-born 22 children were considered legally free, but they were required to work for their 23 mother’s owner for a specified number of years. While slaves were nowhere 24 given land or granted special terms for land acquisitions, the abolition of 25 serfdom often provided the ex-serfs with rights to purchase land from their 26 lords, at some legislated or agreed upon price.8 The fact that ownership of land 27 was frequently maintained by the former slaveowners indicates the limited 28 nature of these reforms, and their attempt to maintain somewhat similar 29 economic and political structures in the future. 30 31 IV. 32 33 Perhaps the most important economic benefit for the freed laborers resulting 34 from the ending of coerced labor was the ability to move, both internally and 35 externally, in response to economic and other forces, and the inability to be 36 bought and sold. 37 Legal access to land ownership, which would limit the desire for mobility 38 by the freed persons, varied with differences in the nature of legislation. There 39 were no legal requirements or subsidized opportunities to acquire land from 40 either the government or private landowners. Slaves could, of course, purchase 4268 Ch01 9/1/03 1:00 pm Page 5 Great Disappointments 5 1 land on the same terms as other members of the population, as long as 2 landowners were willing to sell to ex-slaves and the sale of government lands 3 did not discriminate by race or prior legal status. It was this limited ability to 4 acquire land that contributed to a highly mobile ex-slave population in many 5 areas. 6 What the ending of coerced labor meant, particularly when there were also 7 limits to land acquisition by ex-slaves, was that the landowners needed to learn 8 how to deal in a labor market which entailed some degree of consensual 9 bargaining with workers. No longer could force, coercion, or the purchase of 10 labor be used either to acquire workers or to limit their departure from the 11 working place. The need that arose to attract labor via bidding them away from 12 others, with the use of incentives based on wages and other inducements, could 13 lead to effects that no one hirer desired, such as higher wages and better working 14 conditions for freed labor.9 15 Despite the dramatic nature of the changing labor institutions, emancipation 16 often occurred with relatively limited political changes. The freed persons might 17 not be given voting rights; indeed, many of the free people similarly lacked 18 voting rights prior to the twentieth century. In other cases, such as the United 19 States, the freed slaves were initially given voting rights, but over several 20 decades there were effectively eliminated and were not reinstated for at least 21 another half-century.10 Similarly, in most societies, maldistributions of wealth 22 persisted, often without there being dramatic changes in either direction. There 23 may, however, have been some change in the identity of specific wealtholders, 24 with a new elite replacing the previous one, and a different group of individuals 25 obtaining political and economic power.11For the freed persons it perhaps made 26 little difference who were the elite if any changes would not have influenced 27 their conditions, and if their own landholdings remained limited. In most cases, 28 however, power still resided within the same groups as before the start of the 29 transition, and the failure to strip landowners of their major economic asset 30 meant that their losses in wealth were no doubt limited. This should not be 31 surprising, since with few exceptions, emancipation came from above, and those 32 who introduced these changes were interested in limiting the magnitude of the 33 changes they permitted. 34 It is important to consider that those societies in which emancipations 35 occurred were tied into the world economy and its political system, and these 36 relations with the rest of the world need not have changed in response to the 37 localized changes in labor institutions. Many of the constraints influencing trade, 38 capital, and labor flows, and international relations, remained as before. Being 39 part of an ongoing market system, in both domestic and foreign matters, 40 provided opportunities which were often taken advantage of, but it also set 5 4268 Ch01 9/1/03 1:00 pm Page 6 6 STANLEY L. ENGERMAN 1 constraints on the possibilities for economic and political changes. It is not 2 certain whether the transition from slavery to agricultural peasantry gave rise 3 to an expanded market orientation on the part of the laborers and the landowners 4 than had existed before. What it did mean, however, is that while previously 5 many consumption and labor allocation decisions had been made by owners, 6 choices were up to the laborers who now confronted the need to make decisions 7 that had previously been made for them. 8 9 V. 10 11 Emancipations of coerced labor were generally preceded by extended debates, 12 political as well as among the general public, about what to do and how to go 13 about accomplishing the desired ends.12 The relatively democratic political 14 systems in some nations meant that debates among the broad population or 15 within the aristocracy were necessary concerning the proposed “progressive” 16 reforms. These debates often took a rather long time, since reforms were seldom 17 introduced immediately upon the emergence of social concern. Certainly the 18 successes of British anti-slavery and United States abolition were not immediate, 19 but were the products of decades of activity. There were few automatic or quick 20 successes, and with the exceptions of Haiti, the Spanish-American mainland, 21 and, ultimately the United States, few cases in which emancipation took place 22 as the result of a rapid political change. Even in the latter two cases, however, 23 the basic political and economic systems remained for the most part in place, 24 since there were few major changes in political relations between rulers 25 and lower classes. Political debate about emancipation generally concerned 26 what measures should be introduced to put the proper institutions of the post- 27 emancipation world into place, and what it was anticipated that new world 28 would look like. While they were to free certain members of society, there was 29 a professed belief that all would benefit, those freed as well as other members 30 of society. The terms of the debate as to how the post-emancipation world 31 would reform society included several separable issues. How much legal 32 freedom should be allowed ex-slaves and at what pace? How long would it 33 take the freed to be able to achieve real freedom and independence? To what 34 extent should the state’s authority be used to set and implement plans for the 35 future? The role of the state could be an extension of the existing state apparatus 36 or, as with the stipendiary magistrates in the British colonies and the Freedmen’s 37 Bureau in the United States, lead to the creation of new organizations. 38 Concerns with the future of the freed persons and the new society led 39 to a number of variants in the changing property rights regimes, often with 40 considerable differences in specific terms. The first major choice was whether