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For other uses, see The Black Wall Street.

Former North Carolina Mutual Life Insurance Company and

Mechanics and Farmers Bank building
Black Wall Street was the hub of African-American businesses and financial services in Durham,
North Carolina, during the late 1800s and early 1900s. It is located on Parrish Street.[1] It was home
to Mechanics and Farmers Bank and North Carolina Mutual.
History[edit]
During a time period when disenfranchising Blacks and openly violating their rights was common,
the Black populations of Durham were making strides in business that challenged the legitimacy of
White supremacy. Black-owned business in Durham can be traced back to the efforts of two African-
American entrepreneurs: John Merrick and Charles Spaulding. This duo provided the leadership and
initiative necessary for the beginnings of Black Wall Street.[2]
Though able to increase African-American wealth, Black Wall Street did not distribute this new-found
wealth equally within Durham's Black community, Hayti.[3] The region also promoted basic social
restructuring for Blacks, but did not contribute to desegregation efforts.[4]

Memorial sign of Black Wall Street in Durham Downtown

Historical context[edit]
The southern United States were left in tumult in the few decades of Reconstruction following
the Civil War. During the late 1800s, most of these southern regions were rebuilding infrastructure
damaged by war.[5] Racial tensions were at an all-time high, due to the recent emancipation of all
Black slaves, and the new economic and social competition they represented in many Whites' eyes.
But though these slaves had been freed, their quality of life saw little improvement.[5] Estimates from
government officials say almost 85% of Black people were living below the poverty line during the
late 1800s.[6] Automatically placed at the bottom of the social ladder, Blacks were denied virtually all
rights afforded to Whites.
Major figures[edit]
The emergence of John Merrick changed the identity of Black businessmen.[citation
needed][dubious – discuss]
Merrick was able to reach prominence in his community through his longstanding
friendship with Washington Duke.[7] Originally a barber by profession, Merrick gained enough money
through income and loans to open North Carolina Mutual Life Insurance, which was later expanded
with the efforts of Charles Spaulding.
Serving as the president of North Carolina Mutual starting in 1923, Spaulding enjoyed the reputation
as America's leading Black businessman.[citation needed] In 1900, when Spaulding became general
manager, NC Mutual was on the brink of failure.[8] By 1910 the company was titled as "the world's
largest Negro business."[9] Spaulding and two of the original founders, John Merrick and Dr. Aaron
M. Moore (Spaulding's uncle), were heralded in the Afro-American community as the "Triumvirate,"
the epitome of Booker T. Washington's "black captains of industry."[10] By channeling their success to
providing employment for fellow African Americans, these pioneering figures of Black Wall Street
stimulated its economic expansion.[11]
Location[edit]
Black Wall Street was a four-block district on Parrish Street nicknamed in reference to the district of
New York City. Although the term "Black Wall Street" did not become prevalent until the late fifties,
its identity as an economic powerhouse for Blacks was apparent since the late 1800s.[1] Numerous
other cities in the south had similar Black economic centers, including Tulsa.[1] Parrish Street, in
downtown Durham, was very close to the Hayti community, Durham's main African-American
residential region. The two areas together served as the center of Black life in Durham.[12]
Emergence[edit]
Clashes between White and Black communities throughout the south during this time period were
practically routine occurrences, but this was generally not the case in Durham.[13] In his visit to
Durham, Booker T. Washington said: "Of all the southern cities I have visited I found here the sanest
attitude of the white people toward the blacks."[14]
Relationship with White population[edit]
The progress of the Black business sphere was directly linked to the tolerance and helpfulness of
certain elite Whites in the area, namely Julian Carr, Washington Duke, and James Duke. This key
factor is what differentiated Durham's racial community from a number of other prominent southern
cities.[15] This help from the White populace came in two forms: direct capital investment and racial
tolerance. That said, Julian Carr was a known White supremacist who encouraged violence against
Black people, supporting the Wilmington Massacre of 1898.
The first form, investment, was the key reason as to how Black Wall Street came to be. Merrick's
original insurance company was partially funded by his long standing friend Washington Duke and
White capitalist, Julian Carr.[16] At the time, these ventures were recorded as the largest investment
by a White man in a Black enterprise. White bankers even aided in the organization of the first Negro
bank.[17] By bridging the gap between post-Civil War to current African Americans, White industrialists
paved a path for Blacks to continue expanding Black Wall Street.[18]
Duke family[edit]
The Duke family was actively involved in funding a number of the enterprises on Black Wall Street.
Seen as the quintessential southern businessmen, the Dukes were a highly revered family who
made a fortune from establishing Durham as the tobacco capital of the world.[19] Often cited as one of
the key advantages for Durham's Black business sphere, the positive relationship between this
White elite family and Black entrepreneurs allowed direct capital to flow from the White economic
sphere to the African-American sphere.[20] This openly positive attitude towards the Black community
stemmed from Washington Duke's original opposition to slavery during the Civil War.[20] Frequently
characterized by local historians, as “philanthropic, accommodating, and welcoming," Washington
Duke believed that economic progress should not be marred by skin color.[20] Often found directly
giving personal advice to Merrick and Spaulding, the Dukes did not isolate themselves from the
Black half of the city unlike other contemporary industrial moguls. James B. Duke once stated about
the status of Durham:[21]
Durham, as a city, must be holistically judged for its economic merit. This means we musn't let our
colored neighbors fall into economic depression.
It was also evident that the level of business on Black Wall Street was insignificant in comparison to
the Duke Tobacco industry. Therefore, the Dukes saw the aid to Black Wall Street as no threat to
their industrial dominance of Durham.[22]
Tension with White middle and working classes[edit]
Though racial tolerance and direct capital investment were prevalent amongst the highest ranking
Whites of Durham, the typical White citizen exhibited the stereotypical distaste for African Americans
and provided little help in the progression of Black Wall Street.[23] Labor working Whites saw the
increased employment of Black workers as a threat to their own job security. [24] The Dukes tripled
Black employment in their tobacco factories during the turn of the century, which angered a number
of White workers who occasionally were even seen protesting against this increase in Black
employment.[25] Though both Booker T. Washington and W. E. B. DuBois said that Durham's White
population was highly tolerant, this was not always the case. Envious of the rapid economic
development, lower-class Whites occasionally attacked stores on Black Wall Street.[26] The most
famous of these attacks was cited on March 2, 1902, when a group of Whites burned down an office
owned by North Carolina Mutual.[27]
Blacks in southern communities including Durham did not see independent business as a solution to
rising in the ranks of the social hierarchy.[28] However, a few Blacks in Durham took the route of free
enterprise instead of manual labor.[29] This deterministic attitude was partially due to the strong
leadership of the community under John Merrick. He once addressed the Hayti region, "I do think we
[Black community] have done well and I think we could have done better. Now let us make better
use of the years we have left, as we have the past to look back over and see mistakes."[30] The
positivity in terms of leadership allowed Black Wall Street to surpass most expectations.[31]
Mechanics and Farmers Bank[edit]
Further information: Mechanics and Farmers Bank
Few options were available for Blacks to safely place money deposits and earn interest, considering
Whites often barred Blacks from using their banks.[32] Taking the initiative to solve this predicament,
the founders of M&F Bank, Richard Fitzgerald and James Shepard, established the first African-
American bank.[33] M&F Bank grew to be more than simply a depository for African-American wealth,
but became a major source of loans for Blacks. M&F allowed Black Wall Street to become self-
reliant in terms of funding and allowed for a direct increase in the number of institutions and
organizations.[34] Within twenty years of the bank's founding in 1907, the number of Black-owned
businesses in Durham tripled and the bank itself has been a profitable institution every year since its
opening, even during the depressions.[1]
Economic growth[edit]
The area saw a steady increase of population, wealth, and diversity of occupation.[35] By 1890 the
number of colored people in Durham was 1,858 or 33.8% of the total population. The year 1910
exhibited an increase of over 200% in the total population and the African-American population was
approximately 38% of the total.[36] It is clear that Whites were not impeding the development of this
population, in light of their own endeavors.[37] The numbers based on wealth were even more
staggering. The total valuation of Black property in the county was $8,696 in 1890. By 1920, this
valuation skyrocketed to an astounding $4,298,067.[38] Even after accounting for inflation, the level of
growth for Black Wall Street was incredible. Booker T. Washington, mentioned in his commentary of
Durham the level of vocational diversity. He wrote that he had "never seen in a city of this size so
many prosperous blacksmiths, wheelwrights, cotton-mill operatives, and tobacco factory owners
among the Negros."[14] It is important to acknowledge the fact that these aforementioned statistics
reflect gross numbers, and realistically much of the wealth was shared among a select few Black
business elite, not the entire population.[39] Most Blacks in Durham, due to financial limitations, were
still working in the Duke Tobacco factories or as agricultural laborers after emancipation.[40] The few
that were able to enter business had personal connections such as in the case of Merrick. Even
within the business owners' sector of the Black population, few reached the economic status of
Merrick, Spaulding, or Fitzgerald.[41] A majority of African-American business owners realistically
operated small stores specialized in certain goods that frequently did not result in huge
successes.[1] In an official business census in 1905, it was estimated that over 75% of revenue from
Black Wall Street came from North Carolina Mutual and M&F Bank.[42] Therefore, Durham
represented a unique setting for its select few Black business owners, but this was not the case for
the average African American.[43]
Social strata[edit]
Black Wall Street had a considerable effect on social progression.[44] During the late 1800s the
first Jim Crow laws were established, which mandated racial segregation in all public facilities in
Southern United States. By 1890 the "separate but equal" clause had become quite common
throughout the south. Black Wall Street indirectly maintained this concept.[45]
Black social strata in Durham was shifting rapidly during the late 1800s. The self-made African-
American businessman yielded high status and "suffered little condescension" from the older, White-
oriented business class.[46] By the start of the 1900s increasing segregation and urbanization
encouraged the rise of a Black business class. This threatened to reorder the African-American
status system that had been determined by antebellum forces.[47] Fortunately for Durham, the lack of
an entrenched antebellum social order, allowed this social change to come about with little upheaval.
Higher-ranking Blacks like Merrick were considered upper-class and "new rich."[48]
However, as previously mentioned this social change did not involve the desegregation of Whites
and Blacks. Instead two distinct social structures were apparent due to the presence of Black Wall
Street.[49] The presence of an expanding urban area that offered industrial opportunity allowed for the
formation of a Black middle class.[50] The only true interaction that occurred between the two distinct
social hierarchies occurred at the highest ranks, such as in the case of Merrick with the Dukes and
Julian Carr.
Legacy[edit]
By the end of World War II, the success of African-American businesses gave Durham the title as
"Capital of the Black Middle Class."[51] However, the 1960s urban renewal removed much of Hayti
and Durham's Black Wall Street. This urban sprawl coupled with a heated Civil Rights movements
from the 1940s to 1970s began the first real desegregation of Black and White business
districts.[52] By the late 1900s the Census Bureau reported the city's population as 39.8% Black and
59.8% White.[53] North Carolina Mutual remained the largest and oldest African-American life
insurance company. The legacy of these original businesses is still prevalent in current Durham
institutions. Durham's downtown, once neglected for sprawl, is quickly becoming the city's most
popular destination. Today, historic Parrish Street, is at the center of downtown revitalization. [54] The
Parrish Street Project was recently formed as an initiative of the City of Durham to honor the history
of Black Wall Street and spur economic revitalization along a central downtown corridor. [54]
See also[edit]
• Black mecca
References[edit]
1. ^ Jump up to:a b c d e Repass, Jerre, Black Wall Street, Proquest
2. ^ Boyd 1927, p. 45.
3. ^ Vann, Andre (1999). Durham's Hayti. Arcadia Publishing. p. 34.
4. ^ Wise, Jim (5 June 2002). Durham: A Bull City Story. Arcadia Publishing. p. 100.
5. ^ Jump up to:a b Quick 1922, p. 89.
6. ^ Dula, W. C. (13 November 1951). Durham and her People. Citizens Press. p. 103.
7. ^ Anderson, Jean (2011). Durham County: a history of Durham County, North Carolina. Duke
University Press. p. 69.
8. ^ Kennedy, William (21 January 1970). North Carolina Mutual Story: a Symbol of Progress.
p. 12.
9. ^ Weare, Walter (1993). Black Business in the New South. Duke University History. p. 12.
10. ^ Weare (1993). Black Business in the New South. p. 13.
11. ^ Dula (13 November 1951). Durham and her People. p. 13.
12. ^ Vann, Andre (1999). Durham's Hatyti. Arcadia Publishing. p. 3.
13. ^ Anderson (2011). Durham County: a history of Durham County. p. 12.
14. ^ Jump up to:a b Washington, Booker (1911). Durham, North Carolina, a city of Negro
Enterprises. p. 1.
15. ^ Durden 1987, p. 15.
16. ^ Kennedy (January 21, 1970). North Carolina Mutual story. p. 90.
17. ^ Burgess, Elaine (December 9, 1962). Negro Leadership in a Southern City. College and
University Press. p. 56.
18. ^ Durden 1987, p. 56.
19. ^ Franklin, John (4 October 2005). Mirror to AmericaL the autobiography of John Franklin.
Farrar Straus. p. 72.
20. ^ Jump up to:a b c Durden 1987, pp. 24–27.
21. ^ Durden 1987, p. 28.
22. ^ Durden 1987, p. 78.
23. ^ Weare (1993). Black Business in the New South. p. 27.
24. ^ Franklin, John (4 October 2005). Mirror to America. Farrar Straus. p. 12.
25. ^ Dula (November 13, 1951). Durham and her People. p. 90.
26. ^ Wise, Jim (June 5, 2002). Durham: A Bull City Story. Arcadia Publishing. p. 41.
27. ^ Franklin, John (4 October 2005). A Mirror to America. Farrar Straus. p. 7.
28. ^ Quick 1922, p. 14.
29. ^ Pipkin, Jefferson (April 19, 1902). The Story of a Rising Race. Thompson. p. 56.
30. ^ Burgess (December 9, 1962). Negro Leadership in a Southern City. p. 6.
31. ^ Burgess (December 9, 1962). Negro Leadership in a Southern City. p. 65.
32. ^ Wise, Jim (5 June 2002). Durham: A Bull City Story. Arcadia Publishing. p. 89.
33. ^ Anderson (May 2, 1990). Durham County. p. 54.
34. ^ Boyd 1927, p. 18.
35. ^ DuBois, W. E. B. (1912). Upbuilding of Black Durham: the success of Negroes and their
value to a tolerant and helpful southern city. p. 1.
36. ^ Boyd 1927, p. 24.
37. ^ DuBois (1912). Upbuilding of black Durham. p. 1.
 38. ^ Boyd 1927, p. 70.
39. ^ Weare (1993). Black Business in the New South. p. 54.
40. ^ Vann, Andre (1999). Durham's Hayti. Arcadia Publishing. p. 43.
41. ^ Burgess (December 9, 1962). Negro Leadership in a southern City. p. 38.
42. ^ Weare (1993). Black Business in the New South. Duke University Press. p. 45.
43. ^ Weare (1993). Black Business in the New South. p. 36.
44. ^ Pipkin (April 19, 1902). The Story of a Rising Race. p. 19.
45. ^ Anderson (May 2, 1990). Durham County. p. 6.
46. ^ Pipkin (April 19, 1902). The Story of a Rising Race. p. 18.
47. ^ Quick 1922, p. 34.
48. ^ Quick 1922, p. 35.
49. ^ Weare (1993). Black Business in the New South. p. 76.
50. ^ Weare (1993). Black Business in the New South. p. 39.
51. ^ Anderson (1990). Durham County. p. 54.
52. ^ Anderson (2011). Durham County. Duke University Press. p. 39.
53. ^ Anderson, Jea (2011). Durham County. p. 38.
54. ^ Jump up to:a b Parrish Street Project. Office of Durham Economic and Workforce
Development. 2013.

Bibliography[edit]

• Boyd, William (3 June 1927). The Story of Durham. Duke University Press.
• Durden, Robert (5 July 1987). The Dukes of Durham. Duke University Press.
• Quick, Oliver (1922). Milestones along the color line. O.B.
Categories:
• History of Durham, North Carolina
• Geography of Durham, North Carolina
• African-American history in Durham, North Carolina
• Streets of African American history
• African-American upper class