History of North America

What is the Truck and Credit System?

The Truck and Credit System was a form of debt peonage that was prevalent in the Southern United States during the late 19th and early 20th centuries. Under this system, sharecroppers and tenant farmers were forced to purchase food and other necessities from the plantation owner or storekeeper on credit. The prices charged for these items were often inflated, and the farmers were forced to pay off their debts with their labor. This system kept the farmers in a state of perpetual indebtedness, and it prevented them from accumulating any savings or improving their economic status.

The Truck and Credit System was particularly oppressive for African American farmers, who were often subjected to discrimination and exploitation. In many cases, the plantation owners and storekeepers would charge African American farmers higher prices for goods and services than white farmers, and they would also refuse to extend them credit. This system made it virtually impossible for African American farmers to escape poverty.

The Truck and Credit System was eventually outlawed in the United States, but its legacy continues to affect the lives of many African American families. The system left many African Americans with a deep distrust of the economic system, and it contributed to the high rates of poverty and unemployment that still plague African American communities today.