Northwest Ordinance — Slavery Banned but Indentured Servitude Exploited

The Northwest Ordinance banned slavery in the territory north of the Ohio River but permitted indentured servitude. Indiana Territory Governor William Henry Harrison exploited this loophole aggressively, advocating for multi-decade indenture contracts that functioned as de facto slavery. Hundreds of Black people were held in long-term indenture in Indiana and Illinois through the 1820s, making the 'free territory' designation largely nominal.