Category Archives: economics

by Joel | 20 February 2025 · 5:19 pm

Whence Eastern European Nationalism?

From From Peoples into Nations: A History of Eastern Europe, by John Connelly (Princeton University Press, 2020), Kindle pp. 798-800:

Thus capitalism did not produce nationalism in Eastern Europe; instead, it was a device that helped reshape and spread national ideas and identities that already existed. What generated those ideas and identities, and the commitment to live for them, was the consuming fear of oblivion, profound resentment over condescension, and smoldering hatred of subjugation. Why these emotions emerged across the East European map in the late eighteenth century had to do with imperial powers being themselves (that is, trying to outdo one another for power and glory). Joseph II wanted to be France and Great Britain—simultaneously nation-state and vast empire—Catherine the preeminent European land power, and the sultans wanted to ensure that they were not driven from Europe altogether. Thus their dangerous acts of rooting out corruption in the Greek and Serb lands.

The first visible substance that the new nationalisms nurtured in this vast space on the edges of empires was language, and language is the most arresting blind spot in the analyses of the best-known theorists. In [Benedict] Anderson’s scheme, the vernacular was a given that had only to be transcribed; in fact, the vernacular emerged only after decades of contentious “imagining” brought it to life despite internal dissension among patriots, and against the wishes of recalcitrant censors. The Czech case again is paradigmatic: every inch of Czech newspaper space, every minute of Czech theater performance, each new Czech classroom were objects of human effort—effort for which neither Anderson, nor the other major theorists have time, because they are not universal.

Anderson imagined nationalism moving across borders in a chain reaction beginning in France. In basic outline this claim is incontrovertible. That a nation should control its destiny from within defined boundaries, was a lesson people in and beyond Europe drew from Paris. But where Eastern Europe is concerned, the reality of transfer was more paradoxical. The first to absorb the French model—Germans—simultaneously rejected it and molded their version of nationhood around things that had supposedly eluded the model nation, namely, the language and culture the French took for granted. East Europeans then formed their own ideas of nationness against Germany, while also focusing on culture and language. To an outsider visiting Prague in 1860, the Czech anti-world seemed indistinguishable from the local German variant: Czechs ate the same food, wore the same clothes, loved similar music and stories, had the same local saints, and the same professional ambitions and aspirations for the good life. That was the impression one had until one began listening to what Czechs were saying in their distinct, precious, and, for the Germans, vexingly difficult vernacular.

They spoke of the fate of being a small nation, controlled like a colony, desperately in need of secure borders in a way that citizens of long-established and powerful states like Britain and France could not understand. T. G. Masaryk—an outsider who became an insider—first had to master that language to build the Czechoslovak nation-state. It’s a message that still eludes Western observers, oddly enough, precisely for their insistence on seeing Eastern Europe simply as an extension of their own European space. (Rejoining Europe, after all, was the prime goal of the dissident movements.) In Cold War terms, what happened after 1989 appeared to be the first world embracing and absorbing the second in a concluding act of history.

Yet beginning in about 2010, we have seen that East Central Europe stubbornly carries its own past. This morning, January 4, 2019, the New York Times printed a letter on the injustice of Trianon! The fact is that East Central Europe is a place where the first, second, and third worlds persist and overlap, each making claims on the same and different pasts. After 1989, the Czech lands, for example, came under the sway of the determined neoliberal Václav Klaus, a local nationalist of sorts, but before that they were a center of the second world’s anticapitalism, and before that, colonial subjects, co-inventors of the idea of national liberation struggles, going back to the late eighteenth century.

The scholar-patriots of that distant time, together with the Czech students of 1968 and 1989, Polish workers of 1956 and 1988, and Yugoslav intellectuals of the 1960s or 1980s, all intertwined three strands of struggle for liberal, social, and national rights: for responsible political representation, lives in dignity without want, protection of their national cultures. The stories of 1938, 1948, and 1968 were not a radical break but a refreshed version of older stories of self-assertion against foreign domination. In many ways the big-bang of 1919, or Budapest’s 1956 and Prague’s 1968, were a replay of the ferment of 1848/1849. The miraculous 1989 was a national liberation struggle, as well as an assertion of deeper traditions of local democracy, and basic civic rights, traditions going back centuries. See, for example, the Polish constitution of 1791 or the very old Hungarian traditions of local self-rule.

If there is a lesson from these stories, it is that when the demands of any of these three worlds are met with contempt, forces emerge claiming to set things right, forces that are rarely liberal. The Habsburg monarchy, under siege from many claimants, liberal and otherwise, opened the Pandora’s box of representative government in the 1860s, and what came forth, especially after the liberals’ failure of 1879, has been various kinds of populism, left and right, all briefly united in 1882 at Linz. The intervening generations have witnessed the temporary victories of liberal nationalism; national socialism; socialist nationalism; and most recently after the “return to Europe,” yet again an intense nationalism, connected to the past—to events like Trianon—but also to a politics for which a name has yet to be found.

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Filed under democracy, Eastern Europe, economics, education, language, nationalism, philosophy, religion

by Joel | 16 February 2025 · 6:21 am

Comparing 1989 With 1848

From From Peoples into Nations: A History of Eastern Europe, by John Connelly (Princeton University Press, 2020), Kindle pp. 738-740:

People speak of the revolutions of 1989, but the process of transformation preceded that year and extended far beyond it, to our present time. The earliest revolutionary event occurred in August 1980, when Poles launched a 10-million-strong protest movement that authorities outlawed but never crushed. When strikes broke out in Poland toward the end of the decade, reform Communists called on Solidarity’s leaders to negotiate the “solution” of (partly) free elections. The resonance of that event traveled beyond Poland, however, because the trade union’s continued strength showed people across the Soviet Bloc that state socialism was in need of repairs that went beyond and indeed contradicted Leninism.

That is one strand of the story: how some East Europeans showed others the character of their common predicament and how to escape it. Another strand was within the Communist parties themselves, when liberals—most importantly, Mikhail Gorbachev but also Hungarian and Polish socialists—discussed and prepared for change, for example, through reforms of legal codes. Without Gorbachev, the Communist system could have continued, and perhaps transformed into something different. Reformers were absent in the GDR, Czechoslovakia, Bulgaria, and Romania, which is why the events of 1989 appeared more explosive (and revolutionary) in these places than in Hungary and Poland. One author described the transition in Hungary as a “negotiated revolution.”

The “structural” argument that favored Gorbachev’s reform program was economic; all the East European states registered deepening debt and thus growing dependence on banks, with no end in sight. In the 1980s, Poland was struggling simply to pay interest on its debt. The one state that opposed the reliance on Western credit, Romania, which decided in 1982 to pay all foreign debt, maneuvered itself into a position that was reminiscent of Russia in 1917: the question was not whether there would be an explosion but when. The chain-reaction character of the revolutions of 1989 ensured that when the explosion ignited in Timișoara, the subsequent denouement took place within a “discourse” of democracy, though in fact only Communists had changed places with each other. An actual transition to democratic rule had to wait until later in the following decade.

Thus, when writing about chain reactions, or “avalanches” of revolution that crossed borders in 1988 and 1989, from small to huge (more like icebergs falling into the sea than a collapse of part of a glacier), historians do well to keep in mind that no one knew about the extent of change at the time. Perhaps that is because actors—the Polish dissidents and the Hungarian socialist reformers—could not discern what we now see clearly: the international dimensions of the phenomenon. The first people to make out the larger dynamic were the Czechs. After the East German trains left in early October, and the Berlin Wall fell in early November, Prague, with foreign camera crews on the scene, itself became the set for revolution, a very sudden one, where the major questions were posed and seemed to be answered in a week and a half.

There is a third level to the transnational agitation and ferment: the role of the West in the East, beginning with the work of US consular officials promoting dissenters as well as reform Communists in the 1980s, but continuing in the careful monitoring of political change in the 1990s. Next to Poland, Hungary was the front-runner. The émigré philanthropist George Soros had legally moved his Open Society Foundation to Hungary in the early 1980s, cooperating with the Hungarian Academy of Sciences, and offered technical equipment (such as copiers), stipends, and contacts with Western civil society organizations. Even before Communism’s collapse, Hungary was thus “networked” with pro-democracy nongovernmental organizations (NGOs). The later fall of authoritarian leaders in Slovakia and Bulgaria would be directly tied to the work of NGOs active in those countries, as well as officials of the European Union.

The region’s response to a growing debt crisis, and the pressures of Western creditors, also had echoes of a deeper past. The last time peoples had mobilized en masse for freedom across Europe’s borders was the spring of 1848. That crisis had been preceded by a European-wide series of bad harvests, economic downturn, democratic agitation, and thus a political and intellectual ferment that went across the map. Events in France gave a signal that an opportunity had come for common aspirations to be fulfilled; and as soon as word could travel to Naples, Mannheim, or Bucharest, students, workers, and other urban revolutionaries responded. The enthusiasm was relatively short lived, as the old regime in fact was not vanquished but began reasserting itself from the summer of 1848 in northern Italy and Prague, and the revolution was crushed during the following year.

If 1848 was an attempt of urban classes to throw off the shackles of feudalism, 1989 was the effort of entire societies to shake off a modernization that came to seem counterproductive and inappropriate; from the late 1970s, the region was falling behind economically, as we know now inexorably, and outside of East Germany and the Soviet Union, even the party bureaucracy had long since abandoned commitment based on belief.

The year 1989 seemed to offer a similar script to 1848 but had a happier outcome. There was also a parallel to the Habsburg dilemma of a decade later, of the early 1860s, when perennial financial woes had forced constitutional reform on the monarchy, so that it could satisfy lenders in London and Paris. In a similar way, Polish and Hungarian governments ascended to freedom in 1990 with the immediate challenge of putting their countries back on sound financial footings to prevent their falling out of the international system of exchange. But the hyperinflation that Poland witnessed in early 1990 was a distinctly twentieth-century phenomenon, beyond anything Habsburg officials could have imagined or dealt with.

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Filed under Austria, democracy, Eastern Europe, economics, migration, nationalism, NGOs, U.S., USSR

by Joel | 12 February 2025 · 11:13 pm

GDR Illusions in 1989

From From Peoples into Nations: A History of Eastern Europe, by John Connelly (Princeton University Press, 2020), Kindle pp. 704-705:

Gorbachev was not alone in admiring the apparent East German economic strength. In 1987, Western economists, looking primarily at numerical data, placed East Germany ahead of the United Kingdom in per capita income, a major index of development. As late as 1988, even sober Western newspapers were describing the GDR as a powerhouse. Its deep debt, similar to that of other countries (in per capita terms) was known but was not considered an impediment to growth and continued “success.” The times when East Germany’s economy was lame were “long past,” wrote journalist Peter Merseburger in 1987. He imagined the GDR lasting far into the unspecified future, thriving as a state that had solved the problem of unemployment and social insecurity, and he praised it for low rents, ignoring the fact that they reflected low investment in housing. The data existed to draw more sobering conclusions, but few did so. The GDR was so much wealthier than Poland that no one believed it, too, might have deep problems. Per capita East German gross national product was 40 percent higher than that of the Soviet Union.

The success of the GDR’s economy was an illusion. The state carried an unsustainable debt and tore down centuries-old buildings in world-class architectural gems (like Greifswald, Weimar, and Brandenburg), because it was too poor renovate them. The GDR could not compete even in areas where the state made its heaviest investments, like microelectronic technology, a major focus from the late 1970s. By September 1988, some 250,000 workers at seventeen Kombinate and 14 billion marks of investment had yielded the production of the GDR’s own 1-megabyte microchip, much celebrated in the party press, but already years behind the standard in the West. Toshiba had been mass-producing a 1-megabyte chip for two years at that point and was at work on a 4-megabyte chip.

The relatively high living standards were made possible by fortuitous circumstances: a strong preexisting industrial base; heavy investments in the 1950s; rational organizational reforms in the 1970s and 1980s (Kombinate); and the fact that West Germany considered the GDR a part of united Germany and gave it full access to the markets of the European Union, as well as several massive loans. Still, East Germany’s leaders felt that no reform was needed. Kurt Hager, East German ideology chief, said his land did not need Gorbachev’s plans for greater openness and restructuring. Simply because your neighbor puts up new wallpaper does not mean that you should do the same. The GDR leader Erich Honecker even mocked Gorbachev. “The young man has been making policy for only a year, and already he wants to take on more than he can chew.”

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by Joel | 10 February 2025 · 6:18 am

Communist Bloc Consumerism, 1960s

From From Peoples into Nations: A History of Eastern Europe, by John Connelly (Princeton University Press, 2020), Kindle pp. 652-656:

When Nikita Khrushchev made his “hare-brained” predictions of the imminent victory of Communism in 1961, he directly invited competition with the West, blithely telling delegates of the twenty-second Party Congress that their country would attain a living standard within two decades that would be higher than that of any capitalist country. Part of his optimism stemmed from the belief that the command economy’s problems lay not in planning but in the crude methods of plan calculation; in the view of party experts, the increased use of mathematical methods and computerization would generate improvements in quantity and quality of production.

But the nature of the competition depended on what was meant by “living standard.” Capitalism featured an endless array of consumer goods: dozens of types of automobiles (in new styles every year); countless varieties of cheese, or bread, or sweets, or consumer durables; fashions of clothing for every imaginable taste—as well as tastes that advertising had made imaginable. Socialism would not replicate this dazzling variety, in part because the provision of luxury goods seemed to contradict the higher proletarian morality. East German Communists called the Western race to buy goods in the latest style “consumption terror.” But once the distortions of suppressing the consumer sector disappeared, what exactly was the right balance between the frugal self-sacrificing ethos of Stalinism and the boundless decadence of capitalist culture? How much living space did socialist citizens require: would families have their own houses, or would they share communal apartments? Did socialist citizens drive cars or ride together in buses? Would they share meals at large common tables in cafeterias or occasionally dine in restaurants? What would those restaurants serve?

These questions were new if not revolutionary. The founders of state socialism had not considered the regime’s purpose to be individual consumption of goods and services; they did not disregard consumption entirely but subordinated it to the building of Communism. State socialism was a society based on productive labor. Once it had transformed the workplace and created a set of modern industries producing wealth, distribution would take care of itself. Communism would be the bounty from which all other goods would flow. But now that Communism was fading to an ever-more distant future, functionaries found themselves focusing on distribution more than ever before. Social scientists have depicted the regimes not as “Communist” but as “centers for redistribution,” and dictatorships “over needs.” Yet the functionaries who dictated needs through the state plan still wanted to know what people desired.

In Hungary, state functionaries began their research during the Stalinist period, when employees in the Hungarian Ministry of Internal Commerce had quietly surveyed the preferences of consumers, asking questions about specific goods whose quality they hoped to improve. East Germany’s Communists studied consumption from within the Ministry of Trade and Supply, but also created an Institute for the Study of Demand in 1961, renamed the Institute for the Study of the Market in 1966.

Beginning in the late 1950s, state planners throughout the bloc conceived of their populations as “shoppers,” and small specialty stores gave way to supermarkets and department stores, with expanded assortments of “nonessential” goods, not only responding to, but in a sense, provoking demand. In 1963 the Luxus department store opened in downtown Budapest. It sold goods of exceptional quality, beautifully presented—often at exorbitant prices. After years of privation, window shopping was again an urban experience, and East Europeans began to differentiate products by quality, reflecting the “growing importance of consumer choice in constituting one’s social identity.” The state provided abundant information on how and what to consume, through advertising as well as advice magazines, whether the topic was home decoration, fashion, cooking, or cars. By 1973, advertising represented 3 percent of national expenditure.

…

Thanks to the reorientation toward consumerism, socialist industries produced wealth that transformed people’s lives. The number of Czechoslovaks with automobiles rose from 19 percent in 1970 to 47 percent in 1985; with refrigerators, from 70.1 percent in 1970 to 96.7 percent in 1985; with color TVs, from 0.8 percent in 1976 to 26.8 percent in 1985.22 In Hungary, the trend was similar: television subscriptions went up twenty-fold from 1956 to 1962, car ownership multiplied by eleven times from 1960 to 1970; and from 1960 to 1980, the number of apartments went up by 50 percent. In the 1960s, Hungary’s population as a whole “enjoyed abundant, nutritious meals for the first time in history.” The rising affluence was reflected in ever higher salaries, which in turn stimulated increasing consumption. The Hungarian government boosted incomes by 20 percent after the 1956 revolution, and then 3–4 percent every year until the late 1970s. In Poland, wages increased by 41 percent between 1971 and 1975; in Czechoslovakia, they went up by almost 20 percent.

Excepting some highly rewarded experts and a few “shock workers” held up as models, Stalinism had aimed at reducing everyone to a common standard. That time of “distortion” was over, but what would follow was not clear. People were rewarded not according to need (though basic needs were guaranteed) but according to the value of what they contributed. But how would a socialist state measure value? Under capitalism, physicians might earn twenty times as much as unskilled laborers; how much higher should their salaries be under socialism? If physicians’ salaries were too low, students might not endure the years of tedium and hard work required for a medical degree. But if the income the state plan budgeted for white collar workers was high, they might come to seem a leading class in a society where class distinctions were supposedly fading.

…

Ultimately, the regimes in question opted against significant differentials in income. The Gini coefficients (statistical measures of social inequality) of state socialist societies were the lowest on earth (the Czechoslovak figure was the lowest measured anywhere). The cream of the intelligentsia and members of the upper party bureaucracy had privileged access to goods and services, but, as we shall see in greater detail, this was modest in comparison with the advantages in consumption enjoyed by Western elites. In the 1980s, physicians and engineers in the Soviet Bloc had salaries not much higher than those of skilled workers, and sometimes lower. Still, gradations emerged, more strongly in Poland with its widespread unofficial or “gray” economy. The power of society to produce and reproduce differentiations by status—if not class—was something the regime did not fully control.

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by Joel | 9 February 2025 · 4:54 am

De-Stalinizing Czechoslovakia, 1960s

From From Peoples into Nations: A History of Eastern Europe, by John Connelly (Princeton University Press, 2020), Kindle pp. 623-625:

The Czechoslovak party leadership had a special fear of questions about Stalinism because they knew questions about that period’s crimes pointed directly to them. Antonín Novotný, Antonín Zápotocký, and Václav Kopecký all supported the purges and judicial murders of their comrades, and a few leaders had personally enriched themselves by taking things from the households of the comrades whom they had sent to the gallows. On festive occasions, some set their tables with the best silverware and linens of their murdered comrades. Yet the Czech Communist Party apparatus over which they presided was well rooted in factories and working-class neighborhoods, and it was able to draw on the deepest, most confident, and disciplined cadre reservoirs in Central Europe. It was not easily shaken.

The party had easily dealt with challenges from within Czechoslovak society. In 1956, after Khrushchev’s revelations of Stalin’s crimes, writers had demanded the lifting of censorship and freedom for authors who had been arrested. University campuses and some state ministries and party organizations were briefly transformed into hotbeds of critical discussion. The regime’s response was to focus criticism on Interior Minister Alexej Čepička for fostering a cult of personality, while resisting suggestions that former leader Klement Gottwald or anyone else was guilty of misdeeds. There was no mention of Rudolf Slánský. More importantly, within days of Khrushchev’s speech, party leaders took steps to improve people’s living standards, especially those with low incomes. The advanced Czechoslovak industrial base continued to churn out high-quality products, and so the population lived in relative affluence thanks to the sacrifices and investments made by earlier generations.

By the early 1960s, Czechoslovak industry began to wobble. Between 1949 and 1964, less than 2 percent of the value of the stock of machinery was retired, and its productivity had declined. For the first time, the Czechoslovak economy registered negative growth. Though the entire Soviet Bloc was confronted with problems of growth in the early 1960s, this was the most extreme case. Some radical rethinking was necessary. In a sense, the sluggish economy combined with impatient calls for destalinization from Moscow to send Czechoslovakia on the path toward serious and wide-ranging reform. Teams of Czech and Slovak economists led by former Mauthausen inmate Ota Šik urgently recommended taking decision making away from party bureaucrats—who calculated success in tons produced and not in terms of efficiency—and placing it in the hands of scientists, engineers, and trained managers. In line with ideas coming out of Yugoslavia and Hungary, the Šik commission stipulated that decisions on production, pricing, and wages should not be handed down from an anonymous bureaucracy, comprising about 8,500 functionaries of the national party apparatus, who were out of touch with local needs. Instead, decisions should be made locally, at the plant and community levels.

They urged that market mechanisms (above all, prices) be employed, so that enterprises would gain incentives to produce things that people wanted. They would do so by retaining profit (which in the command economy went to the center), and by rewarding employees according to their contributions. Basic changes like this were meant to have far-reaching consequences, for example, creating incentives to apply modern technologies to production. They would be a way of returning Czech lands to earlier prominence. But making plants more productive would also mean letting less-productive—indeed, unneeded—workers go.

These ideas for reform represented a growing consensus among leading economists throughout the bloc, extending to the Soviet Union. The ultimate problem, everywhere, was that workers as well as large production facilities were protected from market pressures and could not be fired or closed even if radically inefficient. In the post-Stalin period, outright terror was no longer an option. But for the time being, there was optimism. In the mid-1960s, economists felt that central planning would be qualitatively improved by employment of advanced mathematical models and computerization. They thought the deeper problem lay in the crude methods used in plan calculations.

As Stalinists were edged out of the leadership, younger, more enlightened figures entered the cultural bureaucracy, some of whom felt remorse and shame for the recent period of Stalinist extremism. A harbinger of new openness was an international Franz Kafka conference in Prague in 1963 under the aegis of Eduard Goldstücker, a professor of literature and former diplomat who had been condemned to death under Stalinism but had his sentence commuted for work in uranium mines. Now he was now minister of culture. Kafka (1883–1924) had spent his short life almost entirely in the city’s center, working in a law office during the day and writing all night after a nap. His stories evoked the disorienting anonymity of modern life, and by depicting human ciphers caught in webs of inscrutable and merciless bureaucracies, his writings seemed to foretell the fate of the region. Up to this time, Kafka had been a nonperson in Czech cultural life, and to discuss his work seemed to be a move toward waking up from the nightmares he had foreseen. Some of the hardline East German Communists invited to Goldstücker’s conference registered discomfort because they sensed that once unleashed, Kafka’s challenge would act like acid on the power of the state socialist bureaucracy.

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by Joel | 7 February 2025 · 6:24 am

Indian Slavery in California

From The Other Slavery: The Uncovered Story of Indian Enslavement in America, by Andrés Reséndez (HarperCollins, 2016), Kindle pp. 248-250:

Foreign visitors who ventured out of Don Guadalupe’s home and onto his nearby Rancho Petaluma were able to gain a great deal more insight. At its peak in the early 1840s, this 66,000-acre ranch was tended by seven hundred workers. An entire encampment of Indians, “badly clothed” and “pretty nearly in a state of nature,” lived in and around the property and did all the work. As Salvador Vallejo recalled, “They tilled our soil, pastured our cattle, sheared our sheep, cut our lumber, built our houses, paddled our boats, made tiles for our houses, ground our grain, killed our cattle, dressed their hides for the market, and made our unburned bricks; while the women made excellent servants, took good care of our children and made every one of our meals.” The Vallejos were quick to paint a picture of benevolent patriarchy. “Those people we considered as members of our families,” Salvador Vallejo remembered. “We loved them and they loved us. Our intercourse was always pleasant: the Indians knew that our superior education gave us a right to command and rule over them.”

But what seemed pleasant and natural to the Vallejos was decidedly less so to the Indians. Some workers at Rancho Petaluma were former mission Indians. As administrator of the mission of San Francisco de Solano, Don Guadalupe had ample opportunity not only to dispose of mission lands and resources (in fact, his Sonoma home, the military barracks, and the entire plaza lay on former mission lands) but also to bind ex-neophytes to his properties through indebtedness. Faced with dwindling resources and loss of land, former mission Indians had little choice but to put themselves under the protection of overlords like the Vallejos. Other Indian laborers had been captured in military campaigns north of Sonoma. As comandante (commander) of the northern California frontier, Don Guadalupe had a guard of about fifty men to keep order in the region and prevent Indians from stealing cattle. He also used his guardsmen to procure servants. He was not alone in doing so. Especially after the secularization of the missions in 1833, Mexican ranchers sent out armed expeditions to seize Indians practically every year—and as many as six times in 1837, four in 1838, and four in 1839.

Mexican ranchers pioneered the other slavery in California, but American colonists readily adapted to it. They acquired properties of their own and faced the age-old problem of finding laborers. Their options were limited. No black slaves existed in California, at least not in the open, as Mexico’s national government had abolished African slavery in 1829. Asian workers were still rare. In the early 1840s, Don Guadalupe kept four Native Hawaiians at Rancho Petaluma, as did a neighboring American rancher named John Sinclair and some others. The “coolie” (Asian) trade began after the gold discoveries of 1848 and would reach significant numbers only years later. Indian labor was the only viable option. Although the indigenous population of Alta California had been cut by half during the Spanish and Mexican periods—roughly from 300,000 to 150,000—Indians still comprised the most abundant pool of laborers. Short of working the land themselves, white owners had to rely on them.

Traces of the earliest Euro-American settlers are still visible in northern California. John Sutter was the proprietor of a large fort by the junction of the Sacramento and American Rivers that is now a major tourist attraction in midtown Sacramento. George C. Yount was the first Euro-American to settle permanently in the Napa Valley; the wine-sipping town of Yountville is named after him. Pierson B. Reading was the recipient of a huge land grant that would give rise to the city of Redding. And Andrew Kelsey, a ruthless entrepreneur, built a ranching operation just south of Clear Lake that is now the town of Kelseyville. These foreigners were acquisitive, possessed good business sense, and were quick to appreciate the advantages of coerced Indian labor.

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Filed under economics, labor, Mexico, migration, slavery, Spain, U.S.

by Joel | 6 February 2025 · 1:59 am

Rise of Debt Peonage in Mexico

From The Other Slavery: The Uncovered Story of Indian Enslavement in America, by Andrés Reséndez (HarperCollins, 2016), Kindle pp. 238-240:

The trappings of debt peonage were in place in Mexico as early as 1587, when an Indian from Michoacán recounted how some Spaniards had advanced him money “at a far higher price than it was worth and then seized my possessions and took me and my wife and children, and they have kept us locked up for twelve years, moving us from one textile factory to another.” The Indian did not know the amount he still owed or how much money he and his family had earned during their twelve years of forced servitude. But he was certain that peonage was worse than slavery because unlike the Africans with whom he toiled, he was not allowed to wander the streets freely even on Sundays. Over the centuries, debt peonage spread. As the Spanish crown abolished Indian slavery in 1542, prohibited the granting of new encomiendas in 1673, and phased out repartimientos after 1777, debt peonage gained ground.

After Mexico declared its independence from Spain, the process gained momentum. States throughout the country enacted servitude and vagrancy laws. The state of Yucatán, for example, regulated the movement of servants through a certificate system. No servant could abandon his master without having fulfilled the terms of his contract and could not be hired by another employer without first presenting a certificate showing that he owed “absolutely nothing” to his previous employer. In Chiapas the state legislature introduced a servitude code in 1827 allowing owners to retain their workers by force if necessary until they had fulfilled the terms of their contracts. Lashes, lockdowns, and shackles were commonly used. The same was true in Coahuila. In 1851 the state legislature there allowed owners to flog their peons. Interestingly, the governor opposed the measure because it would affect more than one-third of all the people of Coahuila, according to his calculations. Peonage in neighboring Nuevo León may have been just as common and was especially galling because it was customary to transfer debts from fathers to sons, thus perpetuating a system of inherited bondage. In these ways, servitude for the liquidation of debts spread all over Mexico. Although Mexico’s faltering economy kept the demand for workers in check in the early decades after independence, once economic growth resumed later in the century, employers went to great lengths to procure and retain coerced laborers.

A muckraking American journalist named John Kenneth Turner had unique access to this expanding world of servitude and provided the most detailed portrait of its workings. Posing as a millionaire investor, Turner traveled to Yucatán in 1908. He made his way to Mérida, a town that boasted extravagant mansions and was surrounded by about 150 henequen haciendas. The planters there received the American warmly. These “little Rockefellers,” as Turner called them, had grown rich by selling rope and twine made from the henequen plant. In the early years of the century, Yucatán’s total exports of henequen had reached nearly 250 million pounds a year. But a panic in 1907 had cut severely into their profits, “so they needed ready cash, and they were willing to take it from anyone who came,” Turner explained. “Hence my imaginary money was the open sesame to their club, and to their farms.”

Turner’s disguise as a prospective investor also allowed him to ask freely about how workers were hired. “Slavery is against the law; we do not call it slavery,” the planters told him again and again. They generally referred to the Mayas, Yaquis, and even Koreans working at their haciendas as “people” or “laborers,” never as slaves. The “henequen kings” were quite forthcoming about how debt served as a tool of coercion. “We do not consider that we own our laborers; we consider they are in debt to us,” the president of the Agricultural Chamber of Yucatán told Turner. “And we do not consider that we buy and sell them; we consider that we transfer the debt, and the man goes with the debt.” In spite of this verbal obfuscation, the fact was that an Indian worker could be acquired for $400 (400 pesos) in Yucatán. “If you buy now, you buy at a very good time,” Turner was told. “The panic has put the price down. One year ago the price of each man was $1,000.” Obviously, the reason the going rate was uniform was not that all peons were equally in debt, but that there was a market for them irrespective of their debt. “We don’t keep much account of the debt,” clarified one planter, “because it doesn’t matter after you’ve got possession of the man.” After paying the price, Turner was told, he would get the worker along with a photograph and identification papers. “And if your man runs away,” another planter added reassuringly, “the papers are all the authorities require for you to get him back again.”

Turner asked candidly about how to treat his workers. “It is necessary to whip them—oh, yes, very necessary,” opined Felipe G. Canton, secretary of the Agricultural Chamber, “for there is no other way to make them do what you wish. What other means is there of enforcing the discipline of the farm? If we did not whip them they would do nothing.” The American journalist witnessed a formal beating, with all the workers assembled, during one of his hacienda visits. The young man received fifteen lashes across his back with a heavy, wet rope. All henequen plantations had capataces, or foremen, who carried canes to prod and whack the Indians. Turner wrote, “I do not remember visiting a single field in which I did not see some of this punching and prodding and whacking going on.”

Slavery in Mexico in the twentieth century? “Yes, I found it,” wrote Turner in his extraordinary exposé, published on the eve of the Mexican Revolution. “I found it first in Yucatan.” According to him, the slave population of Yucatán consisted of 8,000 Yaqui Indians forcibly transported from Sonora; 3,000 Koreans, who had departed from the port of Inchon and were on four- or five-year labor contracts; and between 100,000 and 125,000 Mayas, “who formerly owned the lands that the henequen kings now own.” Turner estimated that in all of Mexico, there may have been 750,000 slaves, a figure that is almost certainly exaggerated but that underscores the expansion of the other slavery during the last few decades of the nineteenth century.

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by Joel | 5 February 2025 · 5:49 am

Comanches in Mexico, early 1800s

From The Other Slavery: The Uncovered Story of Indian Enslavement in America, by Andrés Reséndez (HarperCollins, 2016), Kindle pp. 219-222:

The Comanche expansion into Mexico started suddenly and coincided with the initial turmoil of independence. Few testimonies are as eloquent as that of landowner and politician Miguel Ramos Arizpe, who had grown up in the state of Coahuila (just south of Texas) during the halcyon days of the Spanish silver boom. A line of presidios running along the Rio Grande had afforded his home state a measure of security that had made it wealthier and better populated than Texas. Though not impassable, these garrisons presented a real obstacle to Indian raiding. As Ramos Arizpe explained, “The various tribes of the Comanchería lived in the enormous plains and sierras between Texas and New Mexico north of the line of presidios . . . and they knew very well that the principal access into the interior provinces of Coahuila, Nuevo León, and Tamaulipas was closed off to them.”

…

Yet the struggle for independence opened the floodgates. “We observed that the heathen Indians who during entire centuries had taken just a handful of children as captives,” Ramos Arizpe recounted, “in the short years between 1816 and 1821 took more than two thousand captives of all kinds, genders, and ages, and killed as many people or more in Coahuila, Nuevo León, and Tamaulipas.” He was personally affected by the upsurge in Comanche activity. Ramos Arizpe owned eight hundred square leagues (more than four million acres) of well-irrigated land on the Rio Grande. But he could neither protect nor develop his vast domain because it lay in the path of Comanche expansion. His property included the ruins of the old presidio of Agua Verde, a poignant reminder of Mexico’s military retreat.

The Comanches would go on to wage a ruinous war in northern Mexico in the 1830s and 1840s, as historian Brian DeLay has shown. They mounted more than forty raids into Mexico during this period—more than two per year on average. Half of them were actually large-scale military operations involving up to a thousand warriors. Considering that the total Comanche population may have been between ten and twelve thousand, and assuming that there was one warrior for every five Comanches, a “raid” of one thousand men amounted to half the Comanche fighting force, as DeLay notes. Just as impressive was their geographic scope. They came to engulf much of Chihuahua, Durango, Coahuila, and Nuevo León, as well as half of Tamaulipas, reaching as far south as Zacatecas, San Luis Potosí, and Querétaro, not far from Mexico City.

These raiding campaigns were not intended solely or even primarily to take captives. Later interviews with Comanches make clear that the acquisition of horses was the principal objective. Warriors competed with one another over the number of mounts they possessed and sought to procure as many horses as they could by any means. Chief Esakeep expressed great pride in his four sons because they could steal more horses than the other young men in the tribe. In fact, horses were an absolute necessity for any long-distance raid. To conduct these campaigns, Comanches needed to travel hundreds of miles. And once deep in Mexico, they needed to retreat swiftly, carrying captives and loot. Having sufficient animals and the ability to change to fresh mounts was critical.

Procuring goods was another major goal of these incursions. The Comanchería was a trading center that absorbed a variety of commodities that were consumed internally or traded to other groups. Clothes and textiles were excellent forms of plunder—lightweight, easy to transport, and always in high demand. Raiders went through the trouble of removing the clothes of their prisoners before killing them and taking shirts and pants from corpses during a raid. They also paid special attention to metal objects. Knives, lances, and firearms were obviously important. But Comanche raiders also took latches, nails, bolts, and other metal objects that could be transformed into valuable tools with a forge.

Even though taking captives was not the primary purpose of these raids, Comanches took hundreds of them in the 1830s–1850s. Each could fetch anywhere between 50 and as much as 1,000 pesos (or dollars, for in that golden era, there was parity between the two currencies). In other words, by the middle of the nineteenth century, a captive was far more valuable than a horse or a mare.

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by Joel | 1 February 2025 · 4:24 am

Gold Rush vs. Silver Marathon

From The Other Slavery: The Uncovered Story of Indian Enslavement in America, by Andrés Reséndez (HarperCollins, 2016), Kindle pp. 102-103:

THE CALIFORNIA GOLD rush transformed the western United States. Within one decade of James W. Marshall’s discovery of a few flecks of gold in a ditch in 1848, some three hundred thousand migrants had moved to California. These Chinese, Italian, German, Chilean, and other newcomers turned the remote and picturesque Mexican outpost of San Francisco into a bustling port. They also fanned out into the Sierra Nevada to build cabins, divert rivers, and pan for the yellow metal. This is a familiar story of long journeys, ethnic conflict, broken dreams, and explosive growth.

Yet the California gold rush was neither the largest metal-induced rush of North America nor the most transformative. By any measure, that title belongs to the earlier Mexican silver boom. In terms of duration, for instance, the California gold rush was like a hurricane. Gold production skyrocketed in 1849 but peaked as early as 1852, only four years after the start of the rush, and declined markedly thereafter. For all practical purposes, the rush was over by 1865, lasting less than twenty years. The use of pressurized water to wash down entire hillsides—a process known as hydraulic mining—kept gold production from declining even faster than it did. By contrast, Mexico’s silver boom started in the 1520s and grew through the sixteenth and early seventeenth centuries, reaching a plateau at the end of this period. Remarkably, it gained a second wind in the late seventeenth century and kept increasing during the eighteenth century, not attaining its high-water mark until the first decade of the nineteenth century—almost three centuries after the boom had begun. By then silver was the principal way in which empires and nations around the world stored their wealth, and the Spanish peso had emerged as the first global currency, used throughout the Americas, Europe, and Asia, where it was often countersigned (authenticated by the treasury or other monetary authorities) and employed in everyday transactions. It remained legal tender in the United States until 1856.

…

Not only did the Mexican silver boom last longer than the California gold rush, but it was more extensive. The gold rush was confined largely to the northeastern quadrant of the state, with a few additional mines sprinkled along its border with Oregon and in southern California. Prior to the gold rush, there had been small strikes in the southern Appalachians (North Carolina, South Carolina, Tennessee, and Georgia), and after the California discoveries, new goldfields emerged in some of the Rocky Mountain territories. Mexico’s centuries-long silver boom surpassed these gold strikes in both geographic scope and sheer density. Historians usually refer to the mines of northern Mexico, but in truth the silver boom started in southern and central Mexico. Present-day tourists driving from Mexico City to Acapulco still stop at Taxco (1534), a silver town that Hernán Cortés himself developed. Taxco was part of a cluster of mines in southern Mexico that included Sultepec (1530), Amatepec (1531), Zacualpan (circa 1540), Zumpango (1531), and others. Only gradually did prospectors venture north into the lands of the Chichimecs, along the Pacific coast and up into the escarpments of the Sierra Madre Occidental. They had to bring in Indians from central Mexico as workers and overcome other tremendous logistical problems, but they succeeded in establishing a string of mines throughout western Mexico. After this initial push, prospectors crossed the Sierra Madre, proceeding on to the central plateau, where they founded some of the richest mines in the world, including Zacatecas (1546) and Guanajuato (1548). But even these mines were not sufficient. Spaniards next explored the present-day states of Durango and Chihuahua, as well as parts of northeastern Mexico. Altogether, they founded more than 400 mines (143 in the sixteenth century, 65 in the seventeenth century, and 225 in the eighteenth century) scattered throughout much of Mexico, from the semitropical regions of the south to the deserts of Chihuahua, and from the Pacific to the Atlantic coast.

…

Given its longer duration and more extensive geography, it is no wonder that Mexico’s silver boom produced roughly twelve times as much metal as the nineteenth-century gold rushes in the United States—44.2 million kilograms (48,722 tons) of silver compared with 3.7 million kilograms (4,078 tons) of gold (see appendix 4). This massive production is even more impressive considering the work and danger involved. The gold of California lay in placers, or surface deposits of sand and gravel, which had resulted from mountains eroding and yielding nuggets or flecks of gold, which collected at lower elevations along hillsides and in streams. Mining these bits of precious metal required a great deal of superficial digging, carrying, and washing. As we saw earlier in the Caribbean, that could be very hard work, but it was not nearly as daunting or dangerous as mining silver. Instead of lying in open-air deposits, the silver had to be extracted from deep underground. The main shaft in the mines of San Luis Potosí was 250 yards long, and that in the Valenciana mine in Guanajuato plunged 635 yards down. When this shaft was completed around 1810, it was considered the deepest man-made shaft in the world. Digging to such depths required an untold amount of work, and yet this was only the beginning of a long, involved process that required bringing the ore to the surface (frequently on the backs of humans), crushing the rocks into a fine powder, and mixing that powder with toxic substances such as lead and mercury.

If the silver boom had occurred in the nineteenth century, Mexico would have become a worldwide magnet, like California. In an era of newspapers, steamboats, and widespread transoceanic travel, there is little doubt that the great Mexican silver mines would have lured immigrants from all quarters of the globe. But because the boom predated these communication and transportation conveniences and unfolded at a time when the Spanish monarchy prohibited all foreigners from going to the silver districts, Mexico had to make do with its own human resources. Whereas California attracted three hundred thousand people, colonial Mexico had to satisfy a hugely greater labor demand with no access to volunteers from the rest of the world.

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by Joel | 27 January 2025 · 6:01 am

Caribbean Slave Traffickers, early 1500s

From The Other Slavery: The Uncovered Story of Indian Enslavement in America, by Andrés Reséndez (HarperCollins, 2016), Kindle pp. 42-45:

Slave traffickers prowled the Caribbean in the 1510s and 1520s, greatly expanding Europeans’ geographic knowledge. Juan Ponce de León, the discoverer of Florida—often depicted as a deluded explorer bent on finding the Fountain of Youth—was in fact deeply involved in the early Caribbean slave trade, sponsoring slaving voyages to the Bahamas and opening Florida to the trade. In fact, the royal patent confirming Ponce de León’s discovery of the “island” of Florida allowed him to “wage war and seize disobedient Indians and carry them away for slaves.” Similarly, the Spaniard who first laid claim to the coast of South Carolina, Lucas Vázquez de Ayllón, a man of “great learning and gravity” deferentially addressed as el licenciado, was a prime mover in the slave trade. (The term licenciado refers to someone who holds a university degree, usually a lawyer.) We often think of these men simply as “discoverers,” when in reality considerable overlap existed between discoverers and slavers.

Somewhat counterintuitively, the dispersion of Natives across the Caribbean greatly facilitated the task of capturing and transporting them. Villagers living in small communities on self-contained and exposed islands had little chance to hide from the intruders or to repel unexpected attacks. Slave raiders formed compact groups of around fifty or sixty men. They arrived quietly on their ships; waited until nighttime, “when the Indians were secure in their mats”; and descended on the Natives, setting their thatched huts on fire, killing anyone who resisted, and capturing all others irrespective of age or gender. Once the initial ambush was over, the slavers often had to pursue the Indians who had escaped, unleashing their mastiffs or running the Natives down with their horses. If there were many captives, the slavers took the trouble of building temporary holding pens by the beach, close to where their ships were moored, while horsemen combed the island. The attackers literally carried off entire populations, leaving empty islands in their wake.

The Indians were then loaded on the ships, packed into the space belowdecks. The scene in the hold of a slaving ship was infernal. Lack of air, poor provisioning, and the relentless tropical heat magnified the slaves’ suffering to the highest degree. “The Indians could not move,” wrote a young man from Milan named Girolamo Benzoní, “and there they lay like animals amid their vomits and feces. When the sea was calm and the ship could not move, sometimes there was no water for these poor people. Broken down by the heat, the bad smell, and the discomforts, they died miserably down there.” Unlike the Middle Passage, which required a month of travel, slaving voyages in the Caribbean lasted only a few days. Yet the mortality rates of these short passages surpassed those of transatlantic voyages. Friar Las Casas reported that “it was never the case that a ship carrying three or four hundred people did not have to throw overboard one hundred or one hundred and fifty bodies out of lack of food and water”—making for a mortality rate of twenty-five to fifty percent. Although it is tempting to disregard this claim as another of Las Casas’s exaggerations, sources confirm his mortality estimates. Vázquez de Ayllón’s slaving expeditions were among the most notorious for their poor provisioning and very high mortality rates, which cut deeply into his profits and caused untold human suffering and senseless death.

Spanish slavers did not win every time. In particular, the Natives of the Lesser Antilles were able to fend off raids and occasionally even go on the offensive, surprising lonely ships and Spanish strongholds. In 1513 about one thousand Caribs attacked the Spanish settlements of Puerto Rico, killing many colonists. Ponce de León blundered when he led a retaliatory slaving raid on the island of Guadalupe in 1515, which ended in total disaster: twenty Spaniards were wounded, and five died. The Indians found themselves at a tremendous technological disadvantage. Indian arrowheads made of fish bones could not penetrate the chain mail armor of the Spaniards, and Indian canoes, though they could easily outmaneuver a caravel, had no chance in a long-distance chase. Nevertheless, the Natives were occasionally able to prevail against the Europeans.

In general, however, small crews of European slavers operating from dilapidated ships proved tremendously effective in subduing and capturing Indians across the Caribbean. Slaving licenses issued by crown authorities reveal just how responsive these crews were to market opportunities. The number of licenses grew steadily from 1514 through 1517, the years when the Taínos of Española were no longer available in sufficient numbers to satisfy the Spaniards’ demand for gold. There was a sudden drop in licenses in 1518, followed by an extraordinary spike in 1519. It is not difficult to explain these changes. A smallpox epidemic ravaged the Caribbean archipelago in 1518, curtailing the traffickers’ activities. The following year, slavers worked harder than ever before to replenish the dead or dying Indian workforce of the large Caribbean islands, launching more slaving raids than in all the previous years combined and spreading desolation and death to the Bahamas, the Lesser Antilles, and parts of the mainland (see appendix 2). We can only imagine the grim circumstances of the Caribbean islanders who had to endure the alarming epidemic that took the lives of family members and neighbors, causing widespread dislocation and famine and tremendous hardship. And just when the worst seemed to be subsiding, Indian slavers appeared on the horizon, ready to stuff them into the holds of their ships and take them to the goldfields of Española or the pearl banks off the coast of Venezuela. The Bahamas became almost entirely depopulated. Las Casas estimated the number of Lucayos captured at forty thousand, while a slave trafficker put the figure at “only” fifteen thousand. Regardless of the actual number, no Lucayo communities remained in the Bahamas except as bands of refugees. By 1520 armadores like Vázquez de Ayllón were forced to bypass the Bahamian archipelago altogether and venture on to Florida and beyond to find human prey.