Well hello Christopher and thank you for asking!
That is definitely up for debate! I can say with some certainty that Louisville jug bands were the first to RECORD their music.
Louisville writer Michael Jones did quite an extensive piece on the history of Jug Band Music some years back, and I won't bore everyone with the whole thing - here is some interesting stuff:
"At the turn of the century, African American musicians in Louisville walked the streets playing tunes on "found" or homemade instruments like empty liquor jugs ("the poor man’s tuba"), kazoos and washboards. They started a craze, "jug music," which swept up and down the Ohio and Mississippi rivers, infiltrating black music in the major river cities. Before the sound peaked in the the early 1930s, Louisville artists like Clifford Hayes ("Atlantic Stomp"), Earl McDonald's Original Louisville Jug Band ("She's In The Graveyard Now") and Sarah Martin ("Sugar Blues") recorded many tunes, both together and separately, some of which became quite popular."
"Jug music was a descendant of the minstrel and early ragtime traditions, and in some cases touched by the jazz that was developing in New Orleans and Chicago, and as it traveled down the Ohio and Mississippi rivers, Memphis also became center for distinctive jug band style. Much of the history of the early jug music slipped from sight, however, until the folk revival of the late ‘60s. Then, groups like Jim Kweskin & His Jug Band, the Grateful Dead ‹ who recorded a version of Cannon’s "Minglewood Blues" - and the Rooftop Singers began to perform songs by Hayes and other jug musicians"
So we definitely have claim on Earl McDonald and Sarah Martin who are both Louisivillian's! ANd in the 20's and 30's WHAS radio had a show featuring the Ballard Chefs, who were another Louisville Jug Band.
Actually, Earl McDonald's only living offspring - Mattie Mathis - still lives in Louisville and was a guest of honor at least year's jubilee and will be with us again this year.
NOW - aren't you sorry you asked?