There was no malicious intent or raising of some mighty racial sword intended Marv.
I was 7 years old when my Gramma used that word, she was 92. It wasn't a word that was "passed down" to my parents, or myself. It is however a word that I know the origin of and never use in my conversations.
It was used to illustrate a story. A story that shows the ignorance of past generations just like our children and their children after them will call you and I ignorant on subjects and/or words in the future.