HILLBILLY MUSIC

Although "Hillbilly" was in general use from the turn of the century onward as a designation of inhabitants of the southeastern section of the U.S.A., especially its backwoods and mountainous areas, it did not become a musical term until 1925. Ralph Peer, recording director of Okeh Records, is credited with the coinage.

In January 1925 when he was recording a Carolina band, he heard a member refer to his associates as North Carolina hillbillies, with the result Peer named them The Hillbillies. 

The group played white Country music, as distinguished from black country music, which Peer dubbed Race music.

Arnold Shaw - American Dictionary of Pop / Rock.

 
MY MUSICAL LIFE
By Carl P. McConnell

Mabel McConnell talks about the Carter Family, Doc & Carl,
The Original Virginia Boys and the early days of radio.