Abstract
Financing plantations and slavery; Dutch credit in Essequibo, Demerara and Berbice, 1770-1820.
Abstract
This study addresses the productive and demographic expansion of colonial Guyana’s plantation economy at the end of the eighteenth century and the role of Dutch credit therein. Dutch credit is traced in Guyana from 1740 but is prominent during the years 1769-1777 and 1790-1800. Contrary to suggestions in Guyana’s historiography, the study finds no support for significant British credit during the period 1770-1820.
Methodologically, the study examines mortgage deeds registered in Essequibo, Demerara and Berbice between 1770 and 1800, and secondary sources for mortgages prior to 1770 and during 1800-1820. Dutch credit was secured by plantations and enslaved persons as collateral, or mortgage-backed plantation credit (MBPC), a forerunner of mortgage-backed securities (MBS). In the 18th century this type of Dutch credit adopted a common model, whereby Dutch merchant firms created early modern investment funds, or so-called “negotiaties”. These funds raised capital by issuing bonds to the public. The funds, in turn, supplied credit for purchasing enslaved persons and plantation requirements. Plantation-owners, as mortgagors, shipped products to mortgagees to repay capital and pay interest. Dutch plantation credit therefore revolved, whenever products were remitted to creditors.
Capital transfers took place only in the Dutch Republic, as payments to merchants shipping enslaved persons, payments to merchants supplying plantation requirements, and payments of insurance premiums for cargoes of tropical products sent by plantation owners as remittances.
To examine function and impact of credit, this study provides a short history of Guyana, an overview of the country’s historiography, a description of evolution of plantation agriculture and migration from inland locations to coastal areas, and a discussion of overall growth of agricultural crops and trading networks. Furthermore, the study assesses the impact of Dutch credit, emphasising importance of ties between Dutch creditors and leading Dutch merchants, and senior public officials, and importance of kinship relations among public officials in the Republic, fund directors, plantation owners, colonial agents of funds, and colonial officials.
Dutch credit in Guyana, measured by credit ceilings specified in new mortgage agreements, was 56 million Dutch guilders for the period 1770-1820. Considering many missing mortgage deeds for Demerara, and the revolving nature of credit, measurement of credit ceilings in mortgage agreements is a conservative estimate of credit. Overall Dutch credit for Guyana was therefore more extensive than suggested in earlier estimates by Van de Voort (1973) and De Vries & Van der Woude (1997). Dutch credit in the last decade of the 19th century caused an explosive increase of slavery in Guyana. In 1807, when the trans-Atlantic slave trade ban was adopted, the 110,000 enslaved persons in Guyana formed the largest Dutch enslaved contingent in the West Indies.
Abstract
This study addresses the productive and demographic expansion of colonial Guyana’s plantation economy at the end of the eighteenth century and the role of Dutch credit therein. Dutch credit is traced in Guyana from 1740 but is prominent during the years 1769-1777 and 1790-1800. Contrary to suggestions in Guyana’s historiography, the study finds no support for significant British credit during the period 1770-1820.
Methodologically, the study examines mortgage deeds registered in Essequibo, Demerara and Berbice between 1770 and 1800, and secondary sources for mortgages prior to 1770 and during 1800-1820. Dutch credit was secured by plantations and enslaved persons as collateral, or mortgage-backed plantation credit (MBPC), a forerunner of mortgage-backed securities (MBS). In the 18th century this type of Dutch credit adopted a common model, whereby Dutch merchant firms created early modern investment funds, or so-called “negotiaties”. These funds raised capital by issuing bonds to the public. The funds, in turn, supplied credit for purchasing enslaved persons and plantation requirements. Plantation-owners, as mortgagors, shipped products to mortgagees to repay capital and pay interest. Dutch plantation credit therefore revolved, whenever products were remitted to creditors.
Capital transfers took place only in the Dutch Republic, as payments to merchants shipping enslaved persons, payments to merchants supplying plantation requirements, and payments of insurance premiums for cargoes of tropical products sent by plantation owners as remittances.
To examine function and impact of credit, this study provides a short history of Guyana, an overview of the country’s historiography, a description of evolution of plantation agriculture and migration from inland locations to coastal areas, and a discussion of overall growth of agricultural crops and trading networks. Furthermore, the study assesses the impact of Dutch credit, emphasising importance of ties between Dutch creditors and leading Dutch merchants, and senior public officials, and importance of kinship relations among public officials in the Republic, fund directors, plantation owners, colonial agents of funds, and colonial officials.
Dutch credit in Guyana, measured by credit ceilings specified in new mortgage agreements, was 56 million Dutch guilders for the period 1770-1820. Considering many missing mortgage deeds for Demerara, and the revolving nature of credit, measurement of credit ceilings in mortgage agreements is a conservative estimate of credit. Overall Dutch credit for Guyana was therefore more extensive than suggested in earlier estimates by Van de Voort (1973) and De Vries & Van der Woude (1997). Dutch credit in the last decade of the 19th century caused an explosive increase of slavery in Guyana. In 1807, when the trans-Atlantic slave trade ban was adopted, the 110,000 enslaved persons in Guyana formed the largest Dutch enslaved contingent in the West Indies.
Original language | English |
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Awarding Institution |
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Supervisors/Advisors |
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Award date | 16 Jan 2025 |
Place of Publication | Rotterdam |
Print ISBNs | 978-94-6510-422-5 |
Publication status | Published - 16 Jan 2025 |
Research programs
- ESHCC HIS