This article is adapted from Race and Place: The Upbuilding of Hayti and Black Wall Street.
By Andre D. Vann | NCCU
“Go to Durham....You need the inspiration. Go to Durham and see Negro business with an aggregate capital of millions. Go to Durham and see twenty-two Negro men making modern history. Among your New Year’s resolves, resolve to go to Durham!” - Excerpted from a 1928 article written by the editor of the St. Luke Herald, a Black weekly newspaper in Richmond, Virginia.
The Legacy of Durham’s Black Wall Street
The study of African Americans on Parrish Street, famously dubbed “The Black Wall Street,” unveils the story of a determined people who thrived under the oppressive Jim Crow laws to forge a legacy of leadership and service. Durham, North Carolina has been a beacon of progress in the “New South” from the 1880s and throughout the early 1900s. Both Black and White leaders in Durham represented a progressive ethos, striving against the status quo to establish a model for the rest of the South.
This exploration delves into the ways public and private memory shape our interpretations of past events. More than just a recounting of events, it enriches our understanding of Durham’s history by tracking the intricate business, social, political, and cultural connections during critical periods of societal change.
Tracing the growth and development of African American citizens in Durham from the Reconstruction era, through Jim Crow, and into the post-desegregation years reveals the impact that collective economics and politics have had. In the early 20th century, many African Americans in the South pooled their resources and formed representative organizations that endure to this day.
Over time, Durham earned the moniker “Chicago of the South,” becoming a pivotal center for African American economic, social, and political advancement. By 1900, segregated communities were the norm, and most African Americans lived in the southern and southeastern sections, known as “Hayti.” Hayti was a self-sustained world with churches, stores, funeral homes, hospitals, libraries, colleges, civic clubs, and fraternal lodges—a testament to African American resilience and ingenuity.
By the early 20th century, Hayti’s business community had grown significantly. It became a major economic center, boasting over 120 businesses including professional offices, real estate companies, florists, grocery stores, and more.
In an article for the Independent Magazine in 1911, Dr. Booker T. Washington praised Durham for offering African Americans a unique opportunity for economic success. He observed an unusual and positive relationship between the African American and White communities, describing it as the “sanest attitude” toward Blacks he had seen in any Southern city.
Dr. W. E. B. DuBois echoed this sentiment in World’s Work magazine in 1912, calling Hayti the “Negro business mecca of the South.”
Durham’s progress in the late 19th and early 20th centuries was driven by influential African American pioneers such as John Merrick, Dr. Aaron M. Moore, and Charles C. Spaulding. These individuals came together to create the North Carolina Mutual and Provident Association in 1898, which provided a wide array of services previously inaccessible to African Americans.
Founded in 1898, the North Carolina Mutual Life Insurance Company embodied the principles of self-help and community uplift, epitomized by their motto, “merciful to all.” This company channeled income derived from insurance sales back into the community, fostering an environment of mutual benefit, economic strength, and societal support.
While Hayti was the residential heart, Parrish Street in Durham’s business district became the hub of Black commerce. Merrick and his colleagues established a complex of African American businesses that included various stores, a bank, a newspaper office, and more on Parrish Street, cementing its nickname, “Black Wall Street.”
The rise of more African American businesses followed with institutions like the Mechanics and Farmers Bank, People’s Building and Loan Association, Banker’s Fire Insurance Company, Fraternal Bank and Trust Company, Mutual Building and Loan Association, and National Negro Finance Corporation.
Durham, North Carolina, once hailed as the “capital of the Black business class” and “The Magic City,” became a beacon of Black economic prowess in the early 20th century. As early as 1905, Black-owned North Carolina Mutual Life Insurance Company (Mutual) set the foundation for what would become known as “Black Wall Street.”
Mutual’s initial investment on Parrish Street marked the beginning of an impressive expansion. As the company bought adjoining lots, the area bounded by Parrish, Orange, and Chapel Hill Streets, Rigsbee Avenue, and Mangum Street turned into a bustling hub for Black businesses. While part of West Parrish Street was home to Mutual and its peers, it is important to note White businesses also occupied the rest of the street.
The once modest office building of Mutual was demolished in 1920, making way for a grander structure designed by Rose and Rose, and constructed by H.L. Smith. Completed in October 1921, this new Neoclassical Revival style building at 114-116 West Parrish Street became a centerpiece of Black economic activity. The headquarters were officially dedicated in December 1921, and the Mechanics and Farmers Bank moved in 1922.
Described in detail by The Durham Sun in a December 31, 1921 issue, the building’s first floor hosted Mechanics and Farmers Bank and Mutual Building and Loan Association. The second floor housed Bankers Fire Insurance Company and North Carolina Mutual, with an assembly room and cafeteria on the sixth floor. The growing business demanded further expansion by 1948 into the adjoining properties.
Mechanics and Farmers Bank purchased the building in 1965, and Mutual moved to West Chapel Hill Street in 1966. The building, later named the Mechanics and Farmers Bank Building, was designated a National Historic Landmark in 1975. The structure continues as a testament to Black ingenuity and success, now owned by the North Carolina Institute of Minority Economic Development.
The impact of Durham’s Black businesses stretched far beyond economics. African American culture and strong community bonds grew through institutions like the church. Established in 1866 and 1869 respectively, White Rock Baptist Church and St. Joseph’s African Methodist Episcopal Church became pillars of spiritual and social uplift.
Education also played a significant role. Dr. James Edward Shepard founded the National Religious Training School and Chautauqua for the Colored Race in 1910, which evolved into North Carolina Central University. This institution produced leaders who contributed significantly to the community and maintained the ethos of Black Wall Street.
Durham’s Black businesses thrived due to a combination of self-initiative and segregation, which funneled Black consumerism into Black-owned businesses. This segregation forced African Americans to develop their own economic systems, creating a self-sustaining community.
In addition to Black Wall Street, other Black neighborhoods like Hayti, the West End, East End, Hickstown, and Pearsontown also flourished. The varied professional landscape included executives, educators, morticians, physicians, and countless small business owners. Four key institutions—Black families, barbershops and beauty salons, churches, and funeral homes—survived and thrived during both segregation and post-segregation.
Despite the vibrant economic and cultural life within their communities, African Americans in Durham could not escape the broader realities of segregation. They faced systemic oppression outside their enclaves but continued to uplift their communities from within. The establishment of the citywide Civic League in 1909 and the Durham Committee on Negro Affairs in 1935 were pivotal in addressing civic needs and improving public health and sanitation for Black residents.
Durham’s Black Wall Street emerged not only as a symbol of Black economic achievement but also as a testament to resilience, ingenuity, and community spirit, leaving a lasting legacy that continues to inspire.
Pioneers of Social and Economic Equity
The members of the Mechanics and Farmers Bank Board of Directors—John H. Wheeler, Louis Austin, Rencher N. Harris, James T. Taylor, Richard L. McDougald, and W. D. Hill—have played significant roles in the fight for social and economic equity for African Americans. This organization was closely aligned with the objectives of the Durham Committee on the Affairs of Black People, whose strategies of civic engagement, voter registration, and legal battles helped to lay the groundwork for the non-violent civil and human rights movements.
Criticism and Progressive
Movements
During the mid-1950s and 1960s, some members of the African American community in Durham criticized the Durham Committee for being too conservative. As a result, many turned to more progressive organizations such as the National Association for the Advancement of Colored People (NAACP), the Congress of Racial Equality (CORE), the Southern Christian Leadership Conference (SCLC), and the Student Nonviolent Coordinating Committee (SNCC). Nevertheless, the Durham Committee maintained its focus on promoting interracial communication and social progress.
Durham Business and Professional Chain
Established in 1938, the Durham Business and Professional Chain (DBPC), also known as “the Chain,” became a crucial entity in promoting the growth and development of Black business leaders and professionals. As a member of the National Business League, its mission was to foster cooperation and unselfish service within the African American community, exemplified by their slogan, “In union there is strength.” The Chain sponsored courses, workshops, and Trade Week, emphasizing the prominence of minority-owned firms throughout the region.
Challenges and Urban Renewal
The late 1950s and 1960s presented challenges with the decline of the business district following the Brown v. Board of Education decision in 1954, which began to dismantle segregation laws. The proposed construction of the Durham Freeway by the Durham Redevelopment Commission necessitated the demolition of nearly 80 acres in the Hayti community, devastating over 120 Black businesses and displacing more than 500 families.
Despite facing numerous obstacles, DBPC remained a key advocate for minority businesses. It played a crucial role in the creation of Minority Development Centers, significantly boosting the number of loans, contracts, and opportunities available to minority-controlled firms.
The Influence of Mechanics and Farmers Bank
Mechanics and Farmers Bank, a financial stronghold in the African American community, has historically been led by influential figures such as lawyers John Hervey Wheeler and James Joseph “J.J.” Sansom, Jr. Both Wheeler and Sansom, alumni of Morehouse College, significantly contributed to the survival and success of African American professionals.
Born in 1908, Wheeler was a distinguished leader and Renaissance man, excelling academically, politically, and in business. His efforts, including the groundbreaking case Blue v. Durham Public School Dist. and the U.S. Supreme Court case Frasier v. Board of Trustees, substantially advanced the desegregation of schools and other institutions. Wheeler was known for his work at Mechanics and Farmers Bank, Durham Committee on the Affairs of Black People, and various other prestigious organizations both at the local and international levels.
Joseph J. Sansom’s Contributions
Beginning his career at Mechanics and Farmers Bank in 1939, Sansom’s rise through the ranks saw him become president and later chairman of the board. His dedication expanded the bank’s assets to $72 million, significantly aiding African American businesses and individuals in obtaining necessary capital and loans.
