Historical Context and Economic Evolution

Early Banks and the Stock Market:

In the 18th and 19th centuries, banks openly distributed stock shares, which increased speculation and volatility in the stock market. This culminated in the stock market crash of 1929, which wiped out millions of life savings and triggered the Great Depression. During this period, many Americans faced severe financial hardship, which reshaped the landscape of banking and finance.

African American Migration and Financial Exclusion:

Amidst the Great Migration, African Americans moved from the rural South to northern cities like Harlem, Detroit, and Chicago, seeking better opportunities. However, due to segregation and Jim Crow laws, they were largely excluded from participating in mainstream banking and the stock market. In response, they developed their own financial systems, such as the Numbers Policy Racket.

The Numbers Policy Racket and Community Investment:

The Numbers Policy Racket, led by figures like Madame Stephanie St. Clair in Harlem, operated similarly to today's lottery but was more community-focused. Unlike the stock market, which was fraught with speculation and risk, the Numbers Racket invested back into the community, circulating the dollar at least 10 times before it left the community. This system provided financial support and economic resilience for many African Americans during a time of widespread exclusion and hardship.

The Federal Reserve and Modern Banking Regulations:

The Federal Reserve was established to bring stability to the banking system and prevent unauthorized stock distributions. Regulations were implemented to ensure banks followed government protocols when offering stocks, often involving third-party entities to protect investors. This system aimed to prevent another financial disaster like the 1929 crash. 

Marcus Garvey's Stock Market Efforts:

In the 1930s, Marcus Garvey sought to involve African Americans in the stock market by investing in a shipping company that would facilitate trade and transportation to Africa, promoting a vision of economic independence. 

Garvey encouraged African Americans to invest $1 in the company, during the time where the banking and financial sectors were becoming more regulated, and the government was keen on protecting investors from fraudulent schemes. Garvey's methods of soliciting funds for stocks through the mail and managing the Black Star Line did not align with these emerging regulatory standards. 

His efforts highlighted the potential for financial empowerment through stock ownership and community economic investing.