Sharecroppers and tenant farmers, who did not own the land they worked, obtained supplies and food on credit from local merchants.
The system ended in the 1940s as prosperity returned and many poor farmers moved permanently to cities and towns, where jobs were plentiful because of World War II.
During the war, British interests had invested in cotton plantations in Egypt and India, resulting in an oversupply of the commodity.
In some cases, the crop did not cover the debt, and the farmer either secretly moved out or started the next year in the red.
[2] The merchants had to borrow the money to buy supplies and, in turn, charged the farmer interest as well as a higher price for merchandise bought on such credit.