Category Archives: economics

British–German Army Rental Contracts, 1776

From Hessians: Mercenaries, Rebels, and the War for British North America, by Brady J. Crytzer (Westholme, 2015), Kindle Loc. 326-348:

By January 1776 the British Empire had drafted agreements with five separate German princes including the regional powerhouse of Hesse-Cassel and its sister state of Hesse-Hanau. Along with these treaties there were also signed agreements with Brunswick-Wolfenbüttel, Anspach-Beyreuth, and the Principality of Waldeck. Later in 1777 the empire would ultimately settle terms with the relatively minor state of Anhalt-Zerbst, bringing their final treaty count to six separate German entities. Although these states would all furnish armies to sail to America and fight George Washington’s Continental Army, like all things in the Holy Roman Empire not all were equal in their contribution. The Landgrave of Hesse-Cassel Frederick II supplied the single largest armed force, 16,992 men, for a total sum of £2,959,800. The Duke of Brunswick provided 5,723 souls for £750,000, and Hesse-Hanau lent 2,422 men for £343,000. Margrave Karl Alexander of Anspach-Bayreuth sent 2,353 men, and signing over the least amount of soldiers were Prince Frederick of Waldeck at 1,225 and Prince Frederick Augustus of Anhalt-Zerbst at 1,160 for £109,120.

The treaties originally signed with the six individual German princes differed from each other in specifics, but all effectively offered the same general terms. The armies were “rented” for a term of six, seven, or eight years and the agreed-upon subsidy would go directly to the landgrave, duke, or margrave who ratified the treaty. The individual soldiers forced to serve in North America would receive none of those funds, but would be paid by the British Empire at roughly the same rate that they would pay their own regular soldiers. While the treaties were agreed upon in principle there were still small line items to be negotiated. One such point of contention was that some of the German princes demanded that London pay the soldiers’ salaries to the princes directly; British administrators balked at this assertion as they were almost certain that the dishonest German rulers would simply pocket the money for themselves. Another issue was the inevitable matter of wartime casualties, in which the British offered to reimburse the states for each man lost. Perhaps the most startling development, though, came from the inclusion of a contracted casualty reimbursement; for every man killed or wounded their prince would be additionally compensated in turn. The German soldier traveled to the New World knowing that he was, quite literally, worth more dead than alive.

By the winter of 1776 the British Empire had contracted nearly eighteen thousand German soldiers to travel to North America and suppress the growing revolt that was stirring in the Atlantic colonies. Of those men over half were provided by Hesse-Cassel, therefore the term “Hessian” would be generically applied to all German auxiliaries employed in the New World. For the unlucky soldier commanded by his feudal lord to travel across the sea and battle the American rebels there was little hope; they were doomed to fight a rebellion for which they stood to gain nothing.

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Europe’s Rent-an-Army Era after 1763

From Hessians: Mercenaries, Rebels, and the War for British North America, by Brady J. Crytzer (Westholme, 2015), Kindle Loc. 280-95:

The close of the Seven Years’ War saw a great reshuffling of Europe’s imperial hierarchy, and with each great power attempting to reestablish itself within the new geopolitical order. The 1763 Peace of Paris established the northern kingdom of Prussia as the supreme German state in the region and its ruler Frederick the Great proved to be a magnetic and respected enlightened politician. To the south Prussia was challenged for regional superiority only by the long-standing European power broker of Austria.

As Prussia and Austria gained prominence in central Europe in the wake of the postwar reorganization, the smaller polities began to do whatever was necessary to maintain relevance in an ever changing world. For those left out of the Austro-Prussian sphere of influence, there were few ways to remain competitive in the international arena. There were few natural resources to sell on the open market and because of their tiny territorial possessions, few found realistic opportunities to expand their wealth. While they lacked the commodities typically associated with increased revenue through wider economic pursuits, it seemed the only true domestic product that many of the smaller states of the Holy Roman Empire had to offer were the people themselves. With a large population held in subjugation due to an adherence to a dying feudal system, many regional German rulers began exploring new ways to turn their otherwise shrinking revenue streams into hefty channels of profit. Their means of doing so became known as Soldatenhandel, or the soldier trade. Typically speaking, the small states of the German empire, like Hesse-Cassel, bolstered their army’s numbers through either conscription or hiring mercenaries themselves, but few ever considered actually renting their armies to outside powers. When it was discovered that there was a market for such an unusual practice as Soldatenhandel, the kings and lords of the German countryside began to dramatically increase their draft totals. By 1776 in the simplest terms the otherwise insignificant German states made themselves relevant to the great powers of Europe by offering their own citizens to the highest bidder.

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Ice as Alternative Currency in North Korea

From The Girl with Seven Names: A North Korean Defector’s Story, by Hyeonseo Lee (William Collins, 2015), Kindle Loc. 2689-2705:

On one occasion, my mother called me with an alarming question. Normally we spoke on the weekends, but this time her call came during the day while I was at work. She sounded excited.

‘I’ve got a few kilos of ice.’

‘What?’ I sank down in my seat, out of sight of my colleagues.

She wanted to know if I had connections in China who could sell it.

Ice, or crystal methamphetamine, had long replaced heroin in North Korea as the foreign-currency earner of choice for the state. It’s a synthetic drug that is not dependent on crops, as heroin is, and can be manufactured to a high purity in state labs. Most of the addicts in China were getting high on crystal meth made in North Korea. Like the opium of the past, crystal meth, though just as illegal, had become an alternative currency in North Korea, and given as gifts and bribes.

‘Omma.’ My voice was a furious whisper. ‘Do you know what that is? It’s highly illegal.’

‘Well, lots of things are illegal.’

In her world, the law was upside down. People had to break the law to live. The prohibition on drug-dealing, a serious crime in most countries, is not viewed in the same way – as protective of society – by North Koreans. It is viewed as a risk, like unauthorized parking. If you can get away with it, where’s the harm? In North Korea the only laws that truly matter, and for which extreme penalties are imposed if they are broken, touch on loyalty to the Kim dynasty. This is well understood by all North Koreans. To my mother, the legality of the ice was a trifling matter. It was just another product to trade.

She said one of the big local traders brought it to the house because he knew I was in China and wondered if I could sell it there.

‘Give it back to him. Never get involved. There are bad people in that trade, and they won’t care if you’re caught.’

She never asked me again.

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Chinese Attitudes to North and South Koreans

From The Girl with Seven Names: A North Korean Defector’s Story, by Hyeonseo Lee (William Collins, 2015), Kindle Loc. 2520-2531:

About a week after receiving my [illegally purchased] ID, I found a job that paid almost four times what I earned as a waitress. I became an interpreter and secretary at a South Korean tech company that made compact discs and LED lights. Its office was in Koreatown. My boss was one of the South Korean directors, and part of my role was to accompany him on visits to clients and manufacturing plants. I noticed that the Chinese looked up to South Koreans and addressed them respectfully. I had usually known them to scowl down their noses at North Koreans.

Everything had happened so fast. Overnight I had gone from waiting tables to sitting in boardrooms, interpreting in negotiations, learning how a modern company operated, and the culture in which business was conducted. I was meeting clients and buyers from Taiwan and Malaysia, and mingling socially with South Korean co-workers. The friends I’d made while waitressing knew me as In-hee. In my new job I used the name on my ID card and documentation, Sun-ja. I would have to take care that these two worlds never collided.

The company’s products were manufactured in a plant that was modern even by Shanghai standards. The process was kept entirely dust-free. To enter we passed through a special machine that blew contaminates from our clothing. The South Koreans treated me well. I could not bear to imagine their reaction if they’d known I’d grown up in the bosom of their archenemy. At times this felt surreal. We were all Koreans, sharing the same language and culture, yet we were technically at war.

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North Korean Career Hopes

From The Girl with Seven Names: A North Korean Defector’s Story, by Hyeonseo Lee (William Collins, 2015), Kindle Loc. 1455-1466:

You would expect between school friends a more honest conversation about our hopes for the future, and what we wanted to do with our lives, and that did happen, to an extent. But by the time we were ready to graduate, we had learned to trim our expectations in line with our songbun. Our choices fell within a certain range. In my class, the few of us with good songbun either took the university entrance exam or, if they were boys, went straight to military service. A few were able, through family connections, to land good jobs with the police or the Bowibu. More than half the students in my class were in the songbun ‘hostile’ category. A list of their names was sent to a government office in Hyesan, where officials assigned them to mines and farms. One girl from this group took the test to enter university, and passed, but was not permitted to go.

My good songbun meant I could plan. My dreams were private and modest. I wanted to be an accordionist. It’s a popular instrument in North Korea and a woman who could play it well had no difficulty making a living. That would be my official career, but, like my mother, I also wanted to trade, start an illicit business, and make money. I thought this would be exciting. I also knew that it would be the only way to ensure that my own family, when one day I had children of my own, would have enough to eat.

My mother fully supported the accordion career choice, and found a musician from the theatre in Hyesan to give me tuition. She said my father would have been pleased, as he’d always enjoyed accordion music. This made me cry.

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Life in a North Korean Border City, 1990s

From The Girl with Seven Names: A North Korean Defector’s Story, by Hyeonseo Lee (William Collins, 2015), Kindle Loc. 296-306:

When I was growing up Hyesan was an exciting place to be. Not because it was lively – nowhere in the country was noted for its theatre scene, restaurants or fashionable subcultures. The city’s appeal lay in its proximity to the narrow Yalu River, Korea’s ancient border with China. In a closed country like North Korea, Hyesan seemed like a city at the edge of the world. To the citizens who lived there it was a portal through which all manner of marvellous foreign-made goods – legal, illegal and highly illegal – entered the country. This made it a thriving hub of trade and smuggling, which brought many benefits and advantages to the locals, not least of which were opportunities to form lucrative partnerships with Chinese merchants on the other side of the river, and make hard currency. At times it could seem like a semi-lawless place where the government’s iron rule was not so strong. This was because almost everyone, from the municipal Party chief to the lowliest border guard, wanted a share of the riches. Occasionally, however, there were crackdowns ordered by Pyongyang, and they could be brutal.

People from Hyesan were therefore more business-minded and often better off than people elsewhere in North Korea. The grown-ups would tell me that we were fortunate to live there. It was the best place in the whole country after Pyongyang, they said.

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‘It was exploitation, but it worked’

From Servants: A Downstairs History of Britain from the Nineteenth Century to Modern Times, by Lucy Lethbridge (Norton, 2013), Kindle Loc. 2690-2710:

Ethel Mannin, the daughter of a postal sorter in Clapham, was a socialist, a feminist, a pacifist, and a leading supporter of progressive theories of education, family and sexuality. In 1920 she was just setting out in life, aged nineteen and married to John Porteous, an advertising copywriter. The couple had set up home in a small semi-detached house in the London suburb of Strawberry Hill. Ethel had a new baby and was a busy writer, at large in the first years of Modernism: ‘Living My Life’, was how she described it in her energetic capitals. A steady stream of romantic novelettes, churned out at a guinea per thousand words, provided Ethel’s income. The household kept a cook-general at thirty shillings a week, a sum Ethel considered generous (the going rate being twenty-five shillings). ‘Cap and apron, of course; blue cotton dress in the mornings; black cloth in the afternoons – and coffee-coloured caps and aprons were just that much smarter than plain white ones.’ Her socialist principles were apparently untroubled by the maid, who called her ‘Madam’ and who referred to her husband as ‘the Master’. As Mannin saw it, domestic help was a necessary component of her freedom. ‘It was snobbish; it was class distinction; it was exploitation but it worked,’ she wrote fifty years later. Educated, perceptive, imaginative, free-thinking, questioning, below the frenetic glitter of ‘the amoral decade, the Sweet and Twenties, the Bitter-Sweet Twenties, the gay Twenties, the Bright Twenties, the Roaring Twenties’, Ethel was more conventional than she had imagined herself at the time: ‘I probably gave [the maid] ten bob at Christmas and the occasional dress I was tired of. Quite intensely I dislike the memory of myself when young; but it’s the way I was. I was of my times; quintessentially.’

Though Ethel Mannin was later to write that ‘the war dealt a great blow to snobbishness’, the old awkwardness, the looming divide between women living under the same roof continued to be considered not just normal but necessary. When Rose Harrison first went to work as a lady’s-maid in the mid-twenties, her charge was Patricia Tufton, who was eighteen, the same age as Rose. ‘My relationship with Miss Patricia isn’t easy for me to describe. We weren’t friends, though if she were asked today she might deny this. We weren’t even acquaintances. We never exchanged confidences, never discussed people, nothing we said brought us closer; my advice might be asked about clothes or bits of shopping, but my opinions were never sought or given on her music, or the people we met or on anything that was personal to either of us, nor did I expect it or miss it at the time.’

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