The Peabody Education Fund was established by George Peabody in 1867, after the American Civil War, for the purpose of promoting "intellectual, moral, and industrial education in the most destitute portion of the Southern States." The main purpose of the fund was to aid elementary education by strengthening existing schools. Because it was restricted from founding new schools, it largely did not benefit freedmen in the South; only 6.5% of its disbursements went to schools for Black students in its early years. The gift of foundation consisted of securities to the value of $2,100,000, of which $1,100,000 were in Mississippi State bonds, afterward repudiated.