Breaking the Bonds of Segregation

Abstract

Abstract This article uncovers the financial knowledge and bond market campaigns of the paradigmatic non-violent revolution of the twentieth century—the civil rights movement. It builds on an interpretation made by the Congress of Racial Equality (CORE) and the National Association for the Advancement of Colored People (NAACP) during the early 1960s: segregation was a national problem because it was financed through a network of bankers across the country who specialized in the business of debt; certified by prominent bond attorneys in New York City, Chicago, and elsewhere; and because investors from around the country collected tax-exempt interest payments from indebted southern segregated municipalities. By weaving the internal memos, protest ephemera, and legal strategies of civil rights activists together with the credit assessments, scheduled bond offerings, and perspectives of financiers, this article reconstructs the attempts to politicize bond market transactions and efforts to place the economic certainty of segregation in doubt. In so doing, it offers a fresh perspective on the so-called classic phase of the civil rights movement (1954–1965). More generally, it raises powerful questions about the dilemmas of investment-focused campaigns, and how finance capital compounds the difficulties of organizing against authoritarian regimes.