History Repeats Itself

The first time as labour, the second time as capital.

This is interesting. Back in the 19th century, when Southern Pacific and Central Pacific were building transcontinental railroads in the USA, they used Chinese labourers when they hit California. Here’s a very Web 1.0 page on the subject. Precis-ing it madly, the interesting bits are:

  • When Charles Crocker of the Central Pacific was asked how small and weak Chinamen would be up to the heavy physical labour of building railroads, he said “They built the Great Wall, didn’t they?”
  • Irish labourers were paid thirty dollars a month each and given free accommodation. The Chinese got a  dollar extra but no acco.
  • The railroad companies were excited about using Chinese labour because they did not practice slavery or peonage, but had a labour agency system. The Age of Gold, a book I read a few years ago, mentioned that the railroad owners were largely northerners and antislavery; and also that the question of granting statehood to California helped trigger the US Civil War.

The Wikipedia page on Chinese American History (badly needs cleanup) points out that things weren’t quite as rosy as that:

  • The labourers usually couldn’t afford passage to America and booked their ticket against future wages. Their wages were then withheld until the ticket was paid for. And you thought TDS was bad.
  • White labourers responded with fury and racism at this competition, and the Yellow Peril meme was born.

Eventually, the Chinese labourers also started working in fisheries and agriculture, and established a massive Chinatown in San Francisco.

Cut to today. China is now offering investment and technical expertise to build California’s high-speed rail line.

That New York Times article in the link has a full circle narrative, and saying that China is now bringing technology and money instead of labour; but given the way the Chinese operate, they’ll probably bring in the labour as well. (Alas, no citations to offer here except private emails about what’s going on at Mundra port and my own observation about the Huawei office in Mumbai)

The really interesting part is on Page 2 of the article:

China’s mostly state-controlled banks had few losses during the global financial crisis and are awash with cash now because of tight regulation and a fast-growing economy. The Chinese government is also becoming disenchanted with bonds and looking to diversify its $2.4 trillion in foreign reserves by investing in areas like natural resources and overseas rail projects.

“They’ve got a lot of capital, and they’re willing to provide a lot of capital” for a California high-speed rail system, Mr. Crane said.

I have a conspiracy theory that infrastructure is only the beginning, but more on that in a separate post.

4 Responses to History Repeats Itself

  1. Gaurav says:

    the question of granting statehood to California helped trigger the US Civil War.

    Dunno about this. There was a 10 year gap between CA getting statehood and the civil war. In between was Uncle Tom’s Cabin, the Kansas-Nebraska Act and of course, the Buchanan presidency. I am doubtful of the CA statehood triggering the civil war. Happy to be corrected though.

    • Aadisht says:

      The funda of California helping trigger the Civil War was that until the transcontinental railroads connected California to the rest of the US, it was a territory and not a state. Rail connectivity spurred an immigration boom and pushed it towards statehood. Before this, the North and South had an equal number of senators. Because California politics was heavily influenced by the railroads and the old boys club of the railroad promoters, California’s senators were antislavery – which made the slaveowning states much more anxious about a slavery ban and helped precipitate the civil war.

    • Aadisht says:

      I also just checked Wikipedia for Kansas-Nebraska act. It says that it was passed to assist in the creation of Transcontinental railroads. Which in turn were being pushed for by the railroad-Republican complex in California. So it’s all of a piece.

  2. Kunal says:

    The transcontinental railroad was completed after the War, so that can’t be it.

    Californian senators were antislavery because their constituents were largely immigrants from the northern states (and Europeans, and Australians, all of whom were antislavery to begin with).

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