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Memphis was founded by a group of investors and was later incorporated as a city. Memphis was named after the ancient capital of Egypt. Square markets, courts and auctions are public parks in Memphis. Memphis developed as a major trading center for cotton. Memphis suffered severe yellow fever epidemics, where thousands of residents fled the city and others died, causing the city to go bankrupt. Memphis became the largest spot cotton market in the world, as well as a highly competitive hardwood lumber market. Many great blues musicians grew up in and around Memphis and the northern Mississippi area.

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