A scope note for the group: UCL’s Legacies of British Slavery database covers British Caribbean, Mauritian and Cape slave-owners. To keep this a London–US topic we use it for method and for the compensation story, and keep cotton, banking and insurance tied to the United States.

1.Insuring human cargo

Lloyd’s grew from a coffee house in 1688 or 1689 into the leading marine insurance market. A fact sheet written for Lloyd’s by the historian Nicholas Draper estimates that slavery-related business made up between a third and 40 per cent of premium income in the second half of the eighteenth century. Of the 77 surviving names among the subscribers to New Lloyd’s in 1771, at least eight invested directly in slaving voyages.

The Zong case turned on this system. In 1781, 132 enslaved Africans were thrown overboard, and the dispute with the insurers reached the Court of King’s Bench in 1783 (Gregson v Gilbert).

Royal Museums Greenwich

Documents relating to a case in the Court of King’s Bench involving the ship Zong

Court papers in the insurance dispute.

Open the source

Lloyd’s of London

Lloyd’s, marine insurance and slavery (Nicholas Draper)

Lloyd’s own account. We treat it as a source to analyse as well as a source of facts.

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Lloyd’s Register Foundation Heritage Centre

Lloyd’s Register of Ships, digitised

Ship-level evidence, including the volume for 1783/84.

Open the source

2.The cotton chain

American cotton went to Liverpool, and the bills of exchange that paid for it were often rediscounted by London discount houses. The same Lloyd’s fact sheet says the insurance of raw cotton shipments continued until slavery ended in the United States in 1865.

Historic Society of Lancashire and Cheshire

The Liverpool Cotton Market: Britain’s First Futures Market (Hall)

A study of how the market worked and how it was financed.

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3.Banking the South

Barings worked with Hope and Co of Amsterdam on the bonds for the Louisiana Purchase in 1803. Its archive also holds correspondence on lending to cotton planters and shippers in Louisiana and other southern states.

The Baring Archive

The Louisiana Purchase

The archive’s exhibition page on Barings and the 1803 bonds.

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The Baring Archive

House correspondence: North America (HC5)

Series description for the North American letters.

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4.Compensation for owners

After abolition in the British Empire the government borrowed £15 million in 1835 through Rothschild, with Moses Montefiore in the syndicate, to pay compensation to slave-owners. The debt was rolled into later loans and was finally paid off in 2015. The compensation records are at The National Archives in series T 71, and the LBS database is built on them.

UK Parliament, Hansard

Compensation, Abolition of Slavery, 3 August 1835

The Commons debate on the loan.

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Bank of England

Staff Working Paper no. 1,006: the collection of slavery compensation, 1835–43

Recent research by Bank staff.

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UCL Centre for the Study of the Legacies of British Slavery

LBS database

The database and its project page.

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Why it matters now

The compensation loan was only repaid in 2015, so British taxpayers were paying for it within living memory. Lloyd’s now publishes its own history of its part in the trade, which gives us a modern institution explaining its past to compare with the documents from the period.

Bibliography

  1. Hall, Catherine, Nicholas Draper, Keith McClelland, Katie Donington and Rachel Lang, Legacies of British Slave-ownership (Cambridge: Cambridge University Press, 2014).
  2. Draper, Nicholas, The Price of Emancipation (Cambridge: Cambridge University Press, 2010).
  3. Beckert, Sven, Empire of Cotton: A Global History (New York: Knopf, 2014).
  4. Baptist, Edward E., The Half Has Never Been Told (New York: Basic Books, 2014).
  5. Walvin, James, The Zong: A Massacre, the Law and the End of Slavery (New Haven: Yale University Press, 2011).
  6. Williams, Eric, Capitalism and Slavery (Chapel Hill: University of North Carolina Press, 1944).
  7. Hidy, Ralph W., The House of Baring in American Trade and Finance (Cambridge, MA: Harvard University Press, 1949).
  8. Oldham, James, ‘Insurance Litigation Involving the Zong and Other British Slave Ships, 1780–1807’, Journal of Legal History 28:3 (2007), 299–318.

Image credits

J.M.W. Turner Slave Ship (Slavers Throwing Overboard the Dead and Dying, Typhoon Coming On), 1840, Wikimedia Commons (https://commons.wikimedia.org/wiki/File:J.M.W._Turner_Slave_Ship_(_Slavers_Throwing_Overboard_the_Dead_and_Dying,_Typhoon_Coming_On)._1840.png). Painting by J. M. W. Turner. Licence on the Commons page: CC0. The painting is used as an illustration of the subject, not as evidence in the cases discussed.