A.P. Giannini & the 1906 Earthquake
The son of Italian immigrants, Amadeo Peter Giannini (1870-1949) became the pioneer of branch banking and builder of a financial empire, which in 1947 included nearly five hundred banks.
As a vegetable peddler he developed a small fortune, then sold his share to create the Bank of Italy. He later became the founder-chairman of the Bank of America National Trust and Savings Association, the largest private banking system in the world.
Giannini's Reactions & Observations
In the early hours of April 18, Giannini was suddenly thrown out of bed by a violent upheaval in the earth that shook his house to its foundation. Despite the earthquake epicenter occurring in San Francisco, the force was so strong that the chimney of their San Mateo home collapsed, taking part of the roof with it. After making arrangements for his family’s safety, Giannini set off for his bank.
His fears were exacerbated when he learned that he would not be able to travel his typical route via the peninsula railroad. The earthquake had wrenched the tracks from the ground making rail service impossible. He set off by foot, his only alternative. Along the 17 mile walk to San Francisco, Giannini encountered processions of wagons carrying frightened people fleeing the city who conveyed depressing stories of startling destruction in the city.
Fearing the worst, Giannini reached his bank around noon and was startled to find that it had not suffered any major damage. Two of his employees had rescued the overnight cash, approximately $80,000 in gold and silver from the vaults of the neighboring Crocker-Woolworth Bank, and secured it inside their bank. Giannini was tremendously relieved, but only briefly, as the threat of fire was rapidly moving their way. He moved quickly and determined that they had about two hours to get everything out of there securely:
At the rate the fire was spreading, I realized that no place in San Francisco could be a safe storage spot for the money. I decided to take it home to San Mateo.
The three men obtained two produce wagons to transport the Bank of Italy’s money, books, and furniture out of the city. Afraid of looters, they camouflaged the gold and silver with crates of oranges, and traveled only as far as his brother-in-law’s home. Under cover of darkness, they continued the remaining distance to San Mateo, arriving at dawn and immediately securing the pouches of gold and silver in the ash trap of the fireplace. This journey was the beginning venture that turned the small Bank of Italy into the largest banking house in the world, the Bank of America.
© MCEER, 2008
