I'd like some help on why the author mentions "Biloxi" in Chapter 7 of The Great Gastby? “Biloxi,” he answered shortly.“A man named Biloxi. ‘blocks’ Biloxi, and he made boxes — that’s...

I'd like some help on why the author mentions "Biloxi" in Chapter 7 of The Great Gastby?

“Biloxi,” he answered shortly.“A man named Biloxi. ‘blocks’ Biloxi, and he made boxes — that’s a fact — and he was from Biloxi, Tennessee.”

“They carried him into my house,” appended Jordan, “because we lived just two doors from the church. And he stayed three weeks, until Daddy told him he had to get out. The day after he left Daddy died.” After a moment she added as if she might have sounded irreverent, “There wasn’t any connection.”

“I used to know a Bill Biloxi from Memphis,” I remarked.

....

“Biloxi?”

“First place, we didn’t have any president ——”

Gatsby’s foot beat a short, restless tattoo and Tom eyed him suddenly.

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e-martin | College Teacher | (Level 1) Educator Emeritus

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This passage occurs just before Gatsby and Tom have a confrontation regarding who Daisy truly loves. They group (Jordan, Nick, Gatsby, Daisy, and Tom) are in Tom's New York apartment on a very hot day. They have little to talk about and the room is tense. 

The passage involving Biloxi is used to demonstrate how little the group had to talk about. When a potential coincidence is brought up, the group carries the discussion out to its extreme and boring end, wondering how many of them know someone named Biloxi. 

The references to Biloxi end as Tom uses this non-topic of conversation to begin harassing Gastby about his past. 

Biloxi, as a non-sense area of conversation, is used as the final lead-in to the confrontation as the non-sense and indirection is shrugged off by Tom. 

We also learn in this passage that as suave and indifferent as Jordan Baker can be at times, she is not capable of dealing with pressure situations. Her humor fails her. 

This becomes significant later in the story when Jordan fails to meet the pressure of the situation following Myrtle's death, effectively abandoning Nick to deal with things on his own.

Sources:

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