Paperbag is a slur used to describe Creole in a derogatory way. The light color blacks in South Louisiana, mainly around New Orleans (Creoles), skin is the color of a brown paper bag.
The word Paperbag is a racial slur that has been used historically to degrade and dehumanize creole. The word is still used by some people for this purpose, and it is seen as offensive and hurtful to creole. If you are unsure about whether or not it is appropriate to use the word Paperbag, it is best to err on the side of caution and avoid using it in any situation.