Debt
This final instalment tracing the settlement scheme of Benjamin Moodie, the heir to the Melsetter Estate, Walls, Orkney, to transport 200 Indentured skilled men to the Cape Colony, covers the role of Debt in this venture and to all those who took part in it.

The scheme was devised by Benjamin Moodie as a means to offset the great debt the Melsetter Estate was in. By the 19th century Orkney Lairds were notorious for enjoying the best clothes and food whilst residing mostly in Edinburgh. Their business interests spanned the globe, trading through shipping, and locally in the lucrative trade in Kelp. Boom and bust was the strategy they relied on. Most, but not all, left the management of their estates in Orkney to Factors.
James Moodie, 9th Laird of Melsetter, was ailing and living in Edinburgh, when he signed over the Estate in trust to his eldest son, Benjamin. Beset by the mounting debts, tenants unable to pay rents, the decline of other economic ventures, Benjamin set out in 1817 with the first batch of Indentured men, he had handpicked, to the Cape Colony. The plan was to hire out these men and make some money. Eventually once they had paid off what they owed him, the skilled Scotsmen would be able to settle, acquire a piece of land, or set up in business themselves. A few did manage to do this.
In 1818 the Melsetter Estate was advertised for Sale for £30,000. There had been many evictions, both threatened and carried out. A sale of the estate was advertised in the national papers in December 1817. The Inverness Courier reported that the Melsetter Estate would be sold by public roup on Wednesday 28 January 1818, 2 o’clock at the Royal Exchange Edinburgh. It was described as an :
“Extensive and valuable estate of Melsetter…almost exclusively the large island and parish of Walls, Pharay, Rysalittle, South Ronaldsay possessions.”
According to the advert : Land Rent yields £1,200 per annum, and could be much increased. Kelp stores – 103 tons a year. There was the Fishery; Roadstead of Longhope Sound; Battery and 2 Martello Towers nearby; three votes in the County. There was a Mansion House and Offices – a commodious residence, all kinds of game and trout.
By February it was still being advertised but with the reduced price of £28,000. It was finally sold in July 1818 for £26,000 to Robert Heddle. To read more about him click on this article by Virginia Schroeder, Orkney and the West African Connection.
Setting up his scheme of settlement had put Benjamin Moodie into considerable debt because he simply did not have the personal funds to do so without borrowing. He entered into a verbal ‘partnership’ with Hamilton Ross, a Cape Town Merchant, and his agent in England, Philp Horne. After the sailing of the first batch of indentured men on the Brilliant, Ross withdrew from the scheme. To repay what he owed Ross, Moodie handed his claim of bondage on the first 50 men over to Ross.
Moodie applied to the Colonial Secretary of the Cape Colony, Colonel Bird, for credit with the Homeland Bank of £3,750 – or £25 per man. All of the indentures were deposited with the Bank as security on the loan. Moodie was advanced 3/4 of the loan, at 6% interest.
Costs were mounting. The first batch of men had been quickly hired out but it was increasingly difficult to find anyone who would employ the others. In a slave economy who needs to pay men to work when you own slaves to do just that?
Benjamin Moodie had also become increasingly out of favour with the Colonial Government. The authorities wished him to settle in the Zuurveld, but instead he purchased Groot Vader Bosch, (GVB) 20 miles east of Breede River, Swellendam. Men had also started to refuse to take up the work they were bonded to do, and some deserted, all this Moodie could not tolerate and legal proceedings were instigated by him.
Moodie looked for other work his indentured men could do. He employed some of these skilled tradesmen on his own farm chopping wood for sale and for use at GVB. He acquired the contract relating to the Cape Town to Simon’s Town Road. He had men labouring on the road and at the quarry. Ignoring the accepted practise of laying and repairing roads, he used a method of small egg-sized stones of his own devising. Locals complained, said the roads were no good, and in less than a year he gave up the contract.
His brothers, John and Donald Moodie, having both served in the Napoleonic Wars, also came out to the Cape. On 12 September 1819, John arrived in Cape Town and took a half share in GVB which he actively managed. He was later joined by Donald.
After 5 years in the Cape, Benjamin owed the Bank more than the original amount he had borrowed. He had purchased other properties and land in the Colony and 117 indentures still remained. GVB was twice mortgaged. His George Estate was sold for 7,500 Rix Dollars making a loss of 500, and in December 1824 the Long Hope Estate (in the Cape), was sold for 9,000 Rix Dollars.
The British Government’s attitude towards settling the Cape Colony changed and in 1820 between April and June, 4,000 settlers arrived in Algoa Bay with their support. Towards the end of 1823 the Colonial Government stepped in to Moodie’s finances and took over the 27 indentures which by that time remained.
The Government Debt Collectors reassessed what the remaining indentured men still owed Moodie for the transport and living costs, and set out to collect the money.
John Barty (Bootie) had his debt reduced from 761Rds to 235Rds and his indenture was taken over by W. Proctor.
Peter Burns, a Blacksmith, could not be found and J. M. Maynard, Debt Collector, reported that Burns was ‘somewhere in the country’.
William Cairncross, a Baker was found by Debt Collector, Ewan Christian, to be ‘paying off his debt erratically.’
W. Cutting, was also reported by Christian to be ‘paying off his debt erratically.’
In 1824 George Donald, a Mason, still owed 35Rds. His debt was taken over by W. Proctor who now owned his indenture and labour.
John Dryden, a Blacksmith/Carpenter was reported by Maynard in 1827 to be ‘in the country.’
William Fleming, a Gardener, had his debt to Moodie of 120Rds reduced in 1824 to 80Rds. It was taken over by W. Proctor.
James Hanton (Hauton), a Carpenter, was reported by Maynard in 1827 to be ‘insolvent and his estate shortly to be sold by the liquidator.’
John Johnston, a Gardener, had managed to pay off a small sum on his indenture according to Christian.
Patrick Johnston, a Farmer, claimed he had ‘paid the major part’ of his debt to Moodie and that he had a receipt. Maynard applied for a court order to force him to pay the rest up.
Robert Low, a Gardener, by 1824 owed 50Rds on his Indenture. This was reduced by 1/3 and was taken over by Proctor.
Allan Lowrie, was employed by Dirk Van Reenen who refused to pay the outstanding amount owed to Proctor.
By 1824 John McGrigor, a Ploughman who had been working for Moodie chopping wood at Long Hope, still was in debt to him for 50Rds. This was reduced by 1/3 when the debt was taken over by Proctor.
William Mill, a Ploughman, paid up 450Rds to Maynard when he came collecting in 1827.
George (William) Nicol, a Mason, who was employing the indentured men Hill & Scoon for Moodie at Long Hope, and who secured the Government tender for the erection of buildings at Hemel and Aardeneer Caledon for the Leper Institution, still owed Moodie 35Rds. Proctor took over this debt in 1824.
George Scott, a Ploughman, owed Moodie 60Rds which was reduced by 1/3 when Proctor took over the debt in 1824.
John Scott, a Ploughman, paid Maynard 162Rds in 1829 but there was still some debt outstanding.
Maynard was unable to trace Alexander Wallace, a Miner, who still owed money in 1821.
Out of the 200 Indentured skilled Scots who travelled to the Cape Colony on Moodie’s money making scheme, many never managed to be released from their bondage. They died, deserted, or were press ganged by the Royal Navy when its vessels put into port, others disappeared into ‘the country’. Some, however, despite the extreme hardships, did settle and their descendants still live there today.
Benjamin Moodie’s sister, Henrietta, married Robert Heddle after he purchased the Melsetter Estate. Moodie blamed the failure of his scheme on the regime of Governor Somerset and ‘the amorality of his people’.
Previous articles in this series can be found by following the link:
Fiona Grahame






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