What is the Truck and Credit System?

Answer 1

The term truck system refers to a form of unfree labor in which workers are paid in goods and/or services, instead of money. It should be noted that truck systems, per se, are distinguished from truck wages, a generic term for non-cash payments, which in some historical contexts have been utilized by free workers. The labor historian George W. Hilton, who wrote an oft-cited book on truck systems in early modern Britain, defined them as: "a set of closely related arrangements whereby some form of consumption is tied to the employment contract [emphasis added]." Under such systems, wage-earners, people paid for piece work, or self-employed people, are paid either in goods and/or services, or a form of limited direct credit, tokens or scrip, which may only be used at a company store, owned by their employers and sometimes charging inflated prices. These systems have usually only been used within small and geographically or culturally-isolated rural areas, especially farming, fishing, mining, logging and plantation communities, especially when these are company towns. Such systems were common in early modern history, and may still be found in the least developed countries. Their presence is rarely heard about by the general public, because they are usually illegal in developed countries. Truck systems and company stores are sometimes identified with debt bondage, although the latter works through advances on wages; by contrast, truck systems control consumption of essential items, such as food and accommodation. Often, the only alternative to accepting a truck system is working somewhere else. It should be noted, however, that in some limited historical circumstances, such as settler colonies, the use of truck wages