Article contents
Contractual Mix in Southern Agriculture since the Civil War: Facts, Hypotheses, and Tests
Published online by Cambridge University Press: 03 March 2009
Abstract
In the South after 1865, workers and property owners employed a variety of contracts—wage payment, crop sharing, and land rental—to bring together cooperating resources in agricultural production. The contractual mix varied over time and space, depending on the relative resource endowments of the contracting parties, the prevailing risk conditions, and the transactions costs of alternative contractual arrangements. To understand the contractual mix, certain empirical distinctions must be made, and the major hypotheses advanced to explain the mix must be seen as complementary rather than mutually exclusive. These hypotheses, however, differ in their demonstrated ability to account for the empirical variance. In addition to factual clarification and theoretical explication, the paper presents a new sample of plantation data and a new econometric procedure for performing more detailed and better controlled tests of hypotheses.
- Type
- Articles
- Information
- Copyright
- Copyright © The Economic History Association 1982
References
1 Shannon, Fred A., The Farmer's Last Frontier: Agriculture, 1860–1897 (New York, 1968), pp. 87–88;Google ScholarMeier, August, and Rudwick, Elliott, From Plantation to Ghetto, rev. ed. (New York, 1970), p. 150;Google ScholarLacy, Dan, The White Use of Blacks in America, (New York, 1972), pp. 90, 101.Google Scholar
2 See the citations of Ransom and Sutch, Reid, Wright, Higgs, and Alston below. See also Shlomowitz, Ralph, “The Origins of Southern Sharecropping,” Agricultural History, 53 (07 1979), 557–75,Google Scholar and Parker, William N., “The South in the National Economy, 1865–1970,” Southern Economic Journal, 46 (04 1980), 1024–32.CrossRefGoogle Scholar Many others—historians, economists, and other social scientists too numerous to mention—have studied these issues. For a useful introduction to the literature, see the footnotes prepared by Weiman, David F. in Parker's paper, pp. 1027–30.Google Scholar
3 Ransom, Roger L., and Sutch, Richard, One Kind of Freedom: The Economic Consequences of Emancipation (Cambridge, 1977), pp. 89–90, 337.Google Scholar
4 U. S. Commissioner of Agriculture, Report of the Commissioner of Agriculture for the Year 1867 Washington, D. C., 1868), p. 417.Google Scholar
5 Southerner, [pseud.], “Agricultural Labor at the South,” Galaxy, 12 (09. 1871), 330;Google ScholarKing, Edward, The Great South: A Record of Journies (Hartford, 1875), p. 273.Google Scholar Ransom and Sutch conclude that by 1870 the initial diversity of contractual forms had largely given way to a standardized sharecropping contract. See One Kind of Freedom, pp. 89, 97, 103.Google Scholar Their claim, however, is contradicted by the very sources they cite. See especially U. S. Commissioner of Agriculture, Report of the Commissioner of Agriculture of the Operations of the Department for the Year 1876 (Washington, D. C., 1877), p. 131.Google Scholar
6 For a compilation of the census data for the period 1880–1910, see Reid, Joseph D. Jr, ‘White Land, Black Labor, and Agricultural Stangnation: The Causes and Effects of Sharecropping in the Postbellum South,” Explorations in Economic History, 16 (01 1979), 40.CrossRefGoogle Scholar
7 U. S. Industrial Commission, Report of the Industrial Commission on Agriculture, XI (Washington, D. C., 1901), p. 135;Google ScholarTaylor, Henry C., An Introduction to the Study of Agricultural Economics (London, 1905), p. 264;Google ScholarWilcox, E. V., “Lease Contracts Used in Renting Farms on Shares,” U. S. Department of Agriculture, Bulletin No. 650 (Feb. 26, 1918), pp. 7, 24;Google ScholarHoffsommer, Harold, ed., The Social and Economic Significance of Land Tenure in the Southwestern States (Chapel Hill, 1950), p. 388.Google Scholar See also Bizzell, William Bennett, “Farm Tenantry in the United States,” Texas Agricultural Experiment Station, Bulletin No. 278 (April 1921), p. 97;Google ScholarEdwards, Thomas J., “The Tenant System and Some Changes since Emancipation,” Annals of the American Academy of Political and Social Science, 49 (09 1913), 38–46.CrossRefGoogle Scholar
8 Brannen, C. O., “Relation of Land Tenure to Plantation Organization,” U. S. Department of Agriculture, Bulletin No. 1269 (Oct. 18, 1924), pp. 6, 19, 68;Google ScholarAlston, Lee J., “Costs of Contracting and the Decline of Tenancy in the South, 1930–1960,” (Ph.D. diss., Univ. of Washington, 1978), p. 3.Google Scholar See also U. S. Census Bureau, Plantation Farming in the United States (Washington, D. C., 1916), pp. 29–31.Google Scholar
9 Edwards, “The Tenant System,” p. 43;Google ScholarWoofter, Thomas Jackson Jr., Negro Migration: Changes in Rural Organization and Population of the Cotton Belt (New York, 1969 [1920]), p. 71.Google Scholar See also Taylor, Henry C., Outlines of Agricultural Economics (New York, 1925), pp. 355–57; Brannen, “Plantation Organization,” passim.Google Scholar
10 Loring, F. W. and Atkinson, C. F., Cotton Culture and the South, considered with reference to Emigration, (Boston, 1869);Google ScholarU. S. Census Office, Report on Cotton Production in the United States, 2 vols. (Washington, D. C., 1884);Google ScholarU. S. Senate, Committee on Education and Labor, Report on Relations between Labour and Capital, 4 vols. (Washington, D. C., 1885);Google ScholarU. S. Industrial Commission, Reports, X, XI (Washington, D. C., 1901).Google Scholar
11 Enoch Marvin Banks, The Economics of Land Tenure in Georgia (New York, 1905);Google Scholar Report Preston Brooks, The Agrarian Revolution in Georgia, 1865–1912 (Madison, 1914).Google Scholar
12 Gray, L. C. and others, “Farm Ownership and Tenancy,” in U. S. Department of Agriculture, Yearbook, 1923 (Washington, D. C., 1924), pp. 507–600;Google ScholarBrannen, “Plantation Organization”, C. R. Chambers, “Relation of Land Income to Land Value,” U. S. Department of Agriculture, Bulletin No. 1224 (June 11, 1924).Google Scholar
13 Gray and others, “Farm Ownership and Tenancy,” p. 586.Google Scholar
14 Loring and Atkinson, Cotton Culture and the South, p. 30.Google Scholar
15 Hoffsommer, Land Tenure, p. 185. See also Wilcox, “Lease Contracts,” pp. 30–31.Google Scholar
16 Reid, “White Land, Black Labor,” pp. 39, 42, 44 (emphasis added). Note that in the words we have emphasized, Reid takes for granted what requires a great deal of theoretical and empirical study.Google Scholar
17 Wright, Gavin, “Freedom and the Southern Economy,” Explorations in Economic History, 16 (01. 1979), 103–04.CrossRefGoogle Scholar
18 Higgs, Robert, “Patterns of Farm Rental in the Georgia Cotton Belt, 1880–1900,” this JOURNAL, 34 (06 1974), 476.Google Scholar
19 Wright, “Freedom and the Southern Economy,” p. 104.Google Scholar
20 U. S. Industrial Commission, Reports, XI, p. 135 (emphasis added).Google Scholar See also Barrow, David C. Jr, “A Georgia Plantation,” Scribner's Monthly, 21 (04 1881), 831–34;Google ScholarU. S. Senate, Committee on Education and Labor, Report, II, p. 159;Google ScholarU. S. Industrial Commission, Reports, X, pp. 475, 486;Google ScholarStone, Alfred Holt, “The Negro in the Yazoo-Mississipi Delta,” American Economic Association, Publications, 3rd Ser. 3 (02 1902), 251.Google Scholar
21 Higgs, Robert, “Race, Tenure, and Resource Allocation in Southern Agriculture, 1910,” this JOURNAL, 33 (03 1973), 158.Google Scholar
22 U. S. Senate, Committee on Education and Labor, Report, II, p. 164;Google ScholarTaylor, Outlines, pp. 343–44.Google Scholar See also Somers, Robert, The Southern States since the War, 1870–1871 (London, 1871), p. 147:Google ScholarNordhoff, Charles, The Cotton States in the Spring and Summer of 1875 (New York, 1876), p. 38;Google ScholarKelsey, Carl, “The Evolution of Negro Labor,” Annals of the American Academy of Political and Social Science, 21 (01 1903), 61–62;CrossRefGoogle ScholarStone, Alfred Holt, Studies in the American Race Problem (New York, 1908), p. 179.Google ScholarHofisommer, Land Tenure, p. 403, expresses the somewhat dissenting view that “managerial skill in and of itself may not be regarded as a tenure factor, yet the acquisition of such skill is dependent in a large measure on a particular type of tenure experience.”Google Scholar
23 Barrow, “A Georgia Plantation,” p. 833; Chambers, “Relation of Land Income to Land Value,” p. 27; Taylor, Outlines, p. 343.Google Scholar
24 U. S. Census Office, Report on Cotton Production, Pt. I, pp. 356, 476, 641, 819; Pt. II, pp. 166, 251, 439, 609; Banks, Economics of Land Tenure, p. 98; Gray and others, “Farm Ownership and Tenancy,” pp. 586–88;Google ScholarHoffsommer, Land Tenure, p. 198.Google Scholar
25 Higgs, “Race, Tenure, and Resource Allocation,” pp. 153–56. Note that the verbal description of the model is seriously flawed by a printer's error;Google Scholar see this JOURNAL, 33 (09 1973), 668 for the correction. The mathematical and graphical description of the model remains unimpaired (at least by the printer).Google Scholar
26 Ibid., pp. 156–59.
27 U. S. Senate, Committee on Education and Labor, Report, IV, p. 30; Stone, Studies, p. 125. See also Southerner, “Agricultural Labor”, p. 329.Google Scholar
28 Loring and Atkinson, Cotton Culture and the South, p. 31; Somers, Southern States, p. 60. See also U. S. Census Office, Report on Cotton Production, Pt. I, pp. 186, 356, 476, 641, 819; Pt. II, pp. 166, 439, 522, 609; U. S. Industrial Commission, Reports, X, p. 456;Google ScholarGray, L. C., Introduction to Agricultural Economics (New York, 1924), pp. 266–68.Google Scholar
29 Somers, Southern States, p. 60; U. S. Senate, Committee on Education and Labor, Report, IV, pp. 78–79, 146.Google Scholar
30 Aiston, Lee J., “Tenure Choice in Southern Agriculture, 1930–1960,” Explorations in Economic History, 18 (07 1981), 211–32.CrossRefGoogle Scholar
31 Loring and Atkinson, Cotton Culture and the South, p. 30. See also U. S. Commissioner of Agriculture, Report for 1867, pp. 416–17, 419; Somers, Southern States, p. 147; Southerner, “Agricultural Labor,” pp. 328, 330, 333, 336; King, The Great South, pp. 298–99.Google Scholar
32 Gray, Introduction, pp. 274, 277.Google Scholar
33 U. S. Census Office, Report on Cotton Production, Pt. II, pp. 165, 519; U. S. Senate, Committee on Education and Labor, Report, 11, pp. 171–72; IV, p. 18; A. B. Hurt, “Mississippi: Its Climate, Soil, Productions, and Agricultural Capabilities,” U. S. Department of Agricuture, Miscellaneous Special Report No. 3 (1884), p. 30.Google Scholar
34 Higgs, “Patterns of Farm Rental,” pp. 470–73.Google Scholar
35 Aiston, “Tenure Choice,” pp. 221–28.Google Scholar
36 U. S. Industrial Commission, Reports, X, pp. 475–79; Edwards, “The Tenant System,” pp. 41–44; Taylor, Outlines, p. 341.Google Scholar
37 Higgs, “Patterns of Farm Rental,” pp. 474–77.Google Scholar
38 Gray and others, “Farm Ownership and Tenancy,” p. 529; Hoffsommer, Land Tenure, p. 199; Woofter, Negro Migration, p. 82. Incidentally, when livestock was kept in a central plantation barn, many croppers and tenants reported to the census enumerators that they had no work stock on their “farms.” Economic historians who uncritically employ the census data incorporating these specious reports are asking for trouble.Google Scholar
39 The plantation schedules for Georgia are in the Rare Books and Manuscripts Department of the University of Georgia. We are most grateful to Robert Willingham, Head Librarian of the Rare Book Collection, for permission to copy the schedules and to J. Larry Gulley, Assistant Rare Books Librarian, for sharing with us his knowledge of Robert Preston Brooks. Without their assistance and hospitality, our work in Georgia would have been much less enjoyable. In addition, we acknowledge the able research assistance of John Sheftall of the University of Georgia.Google Scholar
40 Brooks, The Agrarian Revolution, passim, esp. p. 115. Brooks did not use the data contained in the schedules in a rigorous manner but rather in an illustrative capacity.Google Scholar
41 Ibid., p. 115.
42 The regression coefficient for this vanable has no predictable sign. The variable is included in the equation to control for the absence of the theoretically correct measure of land value, namely, value per improved acre.Google Scholar
43 The regression coefficient for this variable has no theoretically predictable sign, but we must include the variable in equations (2) and (6) in order to isolate the net shifts between the fixed-rent tenant and wage worker classes.Google Scholar
44 Sowell, Thomas, Knowledge and Decisions (New York, 1980), p. 65.Google Scholar
45 Numerous studies indicate that the labor requirements for cotton were at least twice as great as for corn, soybeans, or hay, even when a tractor was employed. See E. L. Langsford and G. H. Thibodeaux, “Plantation Organization and Operation in the Yazoo-Mississippi Delta Area,” U. S. Department of Agriculture, Technical Bulletin No. 628 (May 1939), PP. 58, 60, 64–65, 67;Google ScholarFulmer, John L., Agricultural Progress in the Cotton Belt since 1920 (Chapel Hill, 1950), p. 61;Google Scholar U. S. Works Progress Administration and U. S. Department of Agriculture, Studies of Changing Techniques and Employment in Agricukure, Report No. 15 (Washington, D. C., 1941), pp. 114–50.Google Scholar
46 To the extent that our measures of land values are inaccurate—and individual land values are often reported with imprecision—the regression coefficient of the cotton variable (ICOT) will be biased toward zero because cotton was usually planted on the more valuable land, and land value has an opposite effect on the contractual mix.Google Scholar
47 Kennedy, Peter, A Guide to Econometrics (Cambridge, Massachusetts, 1979), p. 113;Google ScholarRao, Potluri and Miller, Roger LeRoy, Applied Econometrics (Belmont, California, 1971), p. 185.Google Scholar
- 76
- Cited by