Black Day in July is about the riots that occurred in Detroit in the summer of 1967. Apparently, police raided a black club and things got out of hand. It went on for a few days and the military was called in to restore order. It was very violent, many business were destroyed, and about 43 people were killed. You can find a lot of information about the event just by doing an internet search for Detroit riots or 1967 Detroit riots. Incidently, I read an interview with Gord in which he indicated that he doesn't play that song anymore since it is such a sensitive issue.
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