Indentured servitude in British America
Indentured servitude in British America was the prominent system of labor in the British American colonies until it was eventually supplanted by slavery. During its time, the system was so prominent that more than half of all immigrants to British colonies south of New England were white servants, and that nearly half of total white immigration to the Thirteen Colonies came under indenture. By the beginning of the American Revolutionary War in 1775, only 2 to 3 percent of the colonial labor force was composed of indentured servants.
The consensus view among economic historians and economists is that indentured servitude became popular in the Thirteen Colonies in the seventeenth century because of a large demand for labor there, coupled with labor surpluses in Europe and high costs of transatlantic transportation beyond the means of European workers. Between the 1630s and the American Revolution, one-half to two-thirds of white immigrants to the Thirteen Colonies arrived under indentures. Half a million Europeans, mostly young men, also went to the Caribbean under indenture to work on plantations. Fraud and sometimes even force were widely used as methods of recruitment. A debt peonage system similar to indenture was also used in southern New England and Long Island to control and assimilate Native Americans from the 1600s through the American Revolution.
Indentured servitude continued in North America into the early 20th century, but the number of indentured servants declined over time. Although experts do not agree on the causes of the decline, possible factors for the American colonies include changes in the labor market and the legal system that made it cheaper and less risky for an employer to hire African slave labor or paid employees, or made indentures unlawful; increased affordability of travel to North America that made immigrants less likely to rely on indentures to pay travel costs; and effects of the American Revolution, particularly on immigration from Britain. In the Caribbean, the number of indentured servants from Europe began to decline in the 17th century as Europeans became aware of the cruelty of plantation masters and the high death rate of servants, largely due to tropical disease. After the British Empire ended slavery in 1833, plantation owners returned to indentured servitude for labor, with most servants coming from India, until the British government prohibited the practice in 1917.
North America
Between one-half and two-thirds of European immigrants to the Thirteen Colonies between the 1630s and the American Revolution came under indentures. The practice was sufficiently common that the Habeas Corpus Act 1667, in part, prevented imprisonments overseas; it also made provisions for those with existing transportation contracts and those "praying to be transported" in lieu of remaining in prison upon conviction. In any case, while half the European immigrants to the Thirteen Colonies had been indentured servants at some time, actively indentured servants were outnumbered by non-indentured workers, or by those whose indenture had expired. Thus free wage labor was more common for Europeans in the colonies. Indentured persons were numerically important mostly in the region from Virginia north to New Jersey. Other colonies saw far fewer of them. The total number of European immigrants to all 13 colonies before 1775 was 500,000–550,000; of these, 55,000 were involuntary prisoners. Of the 450,000 or so European arrivals who came voluntarily, Tomlins estimates that 48% were indentured. About 75% were under the age of 25. The age of legal adulthood for men was 24 years; those over 24 generally came on contracts lasting about 3 years. Regarding the children who came, Gary Nash reports that, "many of the servants were actually nephews, nieces, cousins and children of friends of emigrating Englishmen, who paid their passage in return for their labor once in America."Farmers, merchants, and shopkeepers in the British colonies found it very difficult to hire free workers, primarily because it was easy for potential workers to set up their own farms. Consequently, a common solution was to transport a young worker from Britain or a German state, who would work for several years to pay off the debt of their travel costs. During the indenture period the servants were not paid cash wages, but were provided with food, accommodation, clothing and training. The indenture document specified how many years the servant would be required to work, after which they would be free. Terms of indenture ranged from one to seven years with typical terms of four or five years. In southern New England, a variant form of indentured servitude, which controlled the labor of Native Americans through an exploitative debt-peonage system, developed in the late 17th century and continued through to the period of the American Revolution.
Not all European servants came willingly. Several instances of kidnapping for transportation to the Americas are recorded, though these were often indentured in the same way as their willing counterparts. An illustrative example is that of Peter Williamson. As historian Richard Hofstadter pointed out, "Although efforts were made to regulate or check their activities, and they diminished in importance in the eighteenth century, it remains true that a certain small part of the white colonial population of America was brought by force, and a much larger portion came in response to deceit and misrepresentation on the part of the spirits ."
Many white immigrants arrived in colonial America as indentured servants, usually as young men and women from Britain or Germany, under the age of 21. Typically, the father of a teenager would sign the legal papers, and work out an arrangement with a ship captain, who would not charge the father any money. The captain would transport the indentured servants to the American colonies, and sell their legal papers to someone who needed workers. At the end of the indenture, the young person was given a new suit of clothes and was free to leave. Many immediately set out to begin their own farms, while others used their newly acquired skills to pursue a trade. A few became sufficiently prosperous that they were eventually able to acquire indentured servants of their own.
Given the high death rate, many servants did not live to the end of their terms. In the 18th and early 19th century, numerous Europeans, mostly from outside the British Isles, traveled to the colonies as redemptioners, a particularly harsh form of indenture.
Indentured servants were a separate category from bound apprentices. The latter were American-born children, usually orphans or from an impoverished family who could not care for them. They were under the control of courts and were bound out to work as an apprentice until a certain age. Two famous bound apprentices were Benjamin Franklin who illegally fled his apprenticeship to his brother, and Andrew Johnson, who later became President of the United States.
George Washington used indentured servants; in April 1775, he offered a reward for the return of two runaway white servants.
Development
Indentured servitude in the Americas was first used by the Virginia Company in the early seventeenth century as a method for collateralizing the debt finance for transporting people to its newfound British colonies.Before the rise of indentured servitude, a large demand for labor existed in the colonies to help build settlements, farm crops and serve as tradesmen, but many laborers in Europe could not afford the transatlantic crossing, which could cost roughly half a worker's annual wage.
European financial institutions could not easily lend to the workers since there was no effective way to enforce a loan from across the Atlantic, rendering labor immobile via the Atlantic because of capital market imperfections.
To address this imperfection, the Virginia Company would allow laborers to borrow against their future earnings at the Virginia Company for a fixed number of years in order to raise sufficient capital to pay for their voyage. Evidence shows this practice was in use by 1609, only two years after the founding of the Virginia Company's original Jamestown settlement. However, this practice created a financial risk for the Virginia Company. If workers died or refused to work, the investment would be lost.
By 1620, the Virginia Company switched to selling contracts of "one hundred servants to be disposed among the old Planters" as soon as the servants reached the colonies. This minimized risk on its investment to the two–three months of transatlantic voyage. As the system gained in popularity, individual farmers and tradesmen would eventually begin investing in indentured servants as well.
The archaeological excavation of a 17th-century Maryland residence in Anne Arundel County discovered what was most likely an indentured servant who was murdered, buried and hidden beneath the floor alongside a garbage pit. In 1661 Virginia law prohibited the inappropriate burial of indentured servants. The Transportation Act 1717 established a regulated system for indentured criminal laborers.
In the 18th century, wages in Great Britain were low because of a surplus of labor. The average monetary wage was about 50 shillings a year for a plowman, and 40 shillings a year for an ordinary unskilled worker. Ships' captains negotiated prices for transporting and feeding a passenger on the seven- or eight-week journey across the ocean, averaging about £5 to £7, equivalent to years of work back in England.
Still, demand for indentured labor remained relatively low until the adoption of staple crops, such as sugarcane in the West Indies or tobacco in the American South. With economies largely based on these crops, the West Indies and American South would see the vast majority of indentured labour.
File:Indenturecertificate.jpg|thumb|An indenture signed by Henry Mayer, with an "X", in 1738. This contract bound Mayer to Abraham Hestant of Bucks County, Pennsylvania, who had paid for Mayer to travel from Europe.
Author and historian Richard Hofstadter has written:
The most unenviable situation was that of servants on Southern plantations, living alongside but never with Negro slaves, both groups doing much the same work, often under the supervision of a relentless overseer… Even as late as 1770, William Eddis, the English surveyor of customs at Annapolis, thought that the Maryland Negroes were better off than "the Europeans, over whom the rigid planter exercises an inflexible severity." The Negroes, Eddis thought, were a lifelong property so were treated with a certain care, but the whites were "strained to the utmost to perform their allotted labour."
Over time the market for indentured servitude developed, with length of contracts showing close correlations to indicators of health and productivity. Tall, strong, healthy, literate or skilled servants would often serve shorter terms than less productive or more sickly servants. Similarly, destinations with harsh working climates such as the West Indies would come to offer shorter contracts compared to the more hospitable colonies.
The majority of indentured servants ended up in the American South, where cash crops necessitated labor-intensive farming. As the Northern colonies moved toward industrialization, they received far less indentured immigration. For example, 96% of English emigrants to Virginia and Maryland from 1773 to 1776 were indentured servants. During the same time period, 2% of English emigrants to New England were indentured.