Amadeo Peter Giannini: A major banker in the world (Part 1 of 2)

This is the first part of the story of Amadeo Peter Giannini, an Italian immigrant who has reached the womb of his mother in the United States. Amadeo was born in San José California in 1870, started without doing anything, and in only 40 years it was able to create the world's largest bank.
Giannini served as the bank director of San Francisco in 1902 already. Many Italian immigrants were sending their savings to their home countries. Giannini regretted that Italians had to pay an 8/10% tax on assignment and have to accept a formidable exchange rate. For two years, he struggled to change the bank's policy which paid attention only to wealthy customers.
When he noticed that he had nothing to do, he decided to open a new bank called the Italian bank in 1904. The remittance from his bank was only 2%, the exchange was fair. This unobtrusive bank in Saloon, North Beach may be considered the world's largest bank in the poor San Francisco area where the Italian community was living.
The most amazing thing is not what he did, that he did it! He ran away from the logical way of working as a profit, with the ambition to work for the people who needed it most.

His life shows that it is possible to earn money for himself and others for reasonable profit, even if you do not put money as the best value.
But let's listen to all the wonderful stories from the beginning.

Amadeo Peter Giannini's parents were two immigrants. Favale di Malgaro, an inland village of Ligure where her grandparents and great grandparents were born, is a small village, like many people born in search of a better life
2,000 citizens surrounded by mountains right behind Rapallo live in the Fontana Buona Valley, where only 500 people live today, but in the last century more than 30,000 civilians of Fava I went to America. Most went to California.
The house of Giannini is discreet and isolated, built on the hill of stone and clay.

Immediately after they got married, Luigi (29 year old Luigi and 14 year old Virginia Demartini) parents of AP Giannini decided to go to the United States to make wealth and escape from misery. You can feel dignity in the place where mountain people lived.
At the rail continental railroad just after they arrived in California, we decided to challenge North Korea, stopped by SanJosé, a small city between Los Angeles and San Francisco, where they tried to purchase land with money they We gathered from relatives before leaving. But I noticed that the information they had about the price of the land was not up to date and could not buy enough land to survive. They borrowed a house with several rooms and changed it with a kind of guest house. The guesthouse worked very hard for six months, and it became 20 room inn. And it was the place where May 6, 1870, the world's most important banker Amadeo Peter Giannini was born.

A group of immigrants gathered from all over the world arrived in California that was attracted after the discovery of gold, helped the Giannini Inn prosper and after several years it became a hotel.
The hotel of Luigi Giannini turned out to be a small gold mine sold a few years later. And with the money he made, he bought 40 acres of land halfway between San Francisco and the bay. Perfect choice, later it became an area of ​​considerable value.
However, six years after the acquisition, Luigi Giannini was killed by the employee before enjoying the benefits he chose. With debate over "1 dollar" debt. The crying Amadeo came to see the scene first and save the dying father.

From that moment, Amadeo realized that money could poison you or possibly kill you.
Virginia became widowed at the age of 22. She left three children. The oldest man is Amadeo that was 7 years old at that time. Virginia was a beautiful woman, especially because there were not many women left in California, she could choose a new husband from many fiancées, she chose well.

She married Lorenzo Scatena who was 26 at that time. The only asset is the horses and carriages used to transport cargo to the wharf of the San Francisco Bay. He is actually very skillful and developed with the help of his beloved spouse.

Scatena was completely in love with Virginia and I liked her three children as someone who really knew how he showed affection. Even while he was studying, he not only helped my father-in-father grow up the fields but also preferred the oldest to manage the management of agricultural products. A few years later Lorenzo · Skattena received a proposal from her husband from his wife, profitability was higher than agriculture, and in 1882 he moved to San Francisco. The ship bought fresh fruits and vegetables everyday. Luigi bought products directly from farmers in the Valley of California, bought it on the shore, and sold directly to the ship that was ship to the ship. Scatena has become a very successful agent of agricultural products in a very short time. The farmer valued Scatena with his politeness, with a dog he was known as a genuine gentleman.

After attending school until San Jose at the age of 12, he continued studying in San Francisco and received a five month economics course. However, while studying, he already started participating in his father's business. He was reading a lot, but in particular he turned around to get all the information about the new technology in agriculture. Many immigrants have asked Amadeo to explain innovative ways that are farmers in various countries and used around the world. After that, he proposed a strategy for growers to grow and a strategy to increase production. Among other things, he proposed an initial harvest where the first fruit is still fresh and soft. Their weight was small, but they were much worthwhile. They not only focused on the quality of the product, but also began to have the best price. In addition, he persuaded his father to finance farmers who wanted to purchase new equipment and farmers who were able to make loyal customers through a rough period.

Scatena was very proud of his son. Besides his efforts, he was proud of his moral honesty that he taught, and that Amadeo adopted as himself. And soon he became the most important person in the company. Skatana changed the ego. Nobody cured publicity activities like him. To strengthen the business of Lorenzo Scatena & Company, he wrote a lot of handwritten letters to all potential customers and suppliers every day. After writing all those letters, he did not promise anything he could not maintain. If he did not reply to the letter, he wore elegantly, he went to see them and ended his business with men.

At the port of the port we were convinced it was not enough and at the age of 15 Amadeo was weighing six feet and weighing 180 pounds so we could make his point even if we participated in a fight .

Scatena is a partner of the company, first winning a share of 30%, then won a 50% share.

Amadeo Peter Giannini was 20 years old and was the most successful and certified in the Italian colony. It is known for being a right person and committed to his charm. He was over 6 feet tall and the bulk of the girls thought he was one of the most handsome men in the city. In 1892, 22 years old, he chose a woman named Clorinda Flores Cuneo of the same age. He was the richest Italian daughter in San Francisco. And this turned out to be one of many fortunate events in his life.

As Giannini walked the way to success, he revealed very lucky that my parents deeply respected the value of tradition thanks to my parents. This tradition was opposite to conservatism. They teach basic value, because everyone is surely sure that they are taking the path of their own life and heading in the right direction.
And all his life, Giannini continued in this way without being attracted to the happiness of success, or being attracted to the greed that people get when they are usually rich.

In 1901 he thought that he no longer worth working to earn more money. He earned income of $ 250 a month from real estate rent. He decided to sell half of the company "L. Scatena & C" to employees who paid for future income. His shares $ This saves the opportunity to invest, read, travel, and go to yourself, without having to worry about everyday work, he can pay the daily needs, I know the world.
In this regard, at his career, at the age of 33, one year before the establishment of the Italian Bank, he is already said to have developed a theory about gold. "I do not want to be too rich," because wealthy people do not rule riches, they are dominated by it, "and even if they declare goodness, those who do not practice these principles Unlike others, Giannini stuck to this rule.

In 1902, the legal father's death became the turning point of Giannini's already wealthy for his famous sincerity and correctness, please manage the fortune of all the family from many wife's brothers . It was a rough one of $ 500,000.

Amadeo Giannini managed one of the assets that was one of San Francisco's most important banks, COLUMBUS SAVINGS AND LOAN. The bank asked me to be a senior manager in the same year.

Since Giannini thought that he could have an authoritative position that he could have been able to help the society, he decided to devote his heart and soul.

Giannini worked for two years, hoping that he could change his financial strategy.

Partners who owned shares of COLUMBUS had only worked with people who had already lost their friends and had offered trust only to companies and entrepreneurs already integrated.
Giannini said that dignified bankers are honest and no one should refuse credit
His dream was a bank for those who did not enter the bank, a bank for immigrants.

After coming to California, people suffering from nothing poverty lived between suffering and humiliation and worked diligently to feed themselves. They did not know the language, and the old Protestant class Americans saw them with distrust and moved away from them.

Giannini remembered his origin and remembered that the majority of immigrants in Italy, especially those who were armed with descent priests, as well as desperate courage, are the foundation of the development in California I knew. He resigned afterwards and devoted his life to them.
When Amadeo decided to open a bank despite quitting his father, his in-law Scatena invested his property and was pleased to actively cooperate and participate in this adventure. However, after establishing the bank, we needed to find the headquarters. Giannini knew that immigrants Anania Quilici who had a bar at the intersection of North Beach very strategically wanted to quit. She made a rental agreement in 1250.

Amadeo Peter Giannini opened the Italian Bank on October 17, 1904. Invest all the things he had, and the money from his partner from Italian origin, with the greatest contribution of his spouse, the great contribution of his father.

However, he founded a bank, he needed publicity. It was hard for him to do this work, as almost all Italian immigrants knew him well. He suggested to provide services, help and financing, start business, buy land and real estate, open a company, start their own business in any case.

Early in the 19th century, it was not easy to get credit from banks, especially for immigrants. Financial institutions did not agree to lend up to 200 dollars and immigrants had to head for loan sharks as necessary.

At the Italian bank, after asking a few questions, Giannini began a cave loan beginning with $ 25. As a guarantee, he saw callus of his hands and face. He personally chose a person who knew a lot of languages. In particular he wanted COLUMBUS teller Pedrini to work for him. To persuade him, he offered twice the salary. His partner protested, Amadeo said Pedrini was polite with businessmen and polite with problematic people. To relax the protest, he decided to give Pedolini half of his own salary. After Giannini saw the right thing, this case became invalid.
Since Giannini did not want to become President of the Italian Bank and did not need power derived from that position, he built up the position of Vice President, just one year later, President Lorenzo Scatena.

One of the regulations that came into effect was that administrators worked unpaid until Italian banks made profits.

He decided to hold a popular stock. He did not want anyone to have more than 3000 shares distributed. He also limited the value of the stock to a maximum of $ 100. He confirmed that he went to a bakery, a fisherman, a grocery store, a plumber, a hairdresser, a person who had never joined the bank before. He was satisfied only when he confirmed that most stocks were given to shareholders of 1 share to 4 shares.

Only two months later the Italian bank had a deposit of $ 70,000, but the loan was over $ 90,000. Partner was worried, but Giannini knew that this was the only way to gain general cognition and trust. Why are you not grateful to those who have borrowed a decent house or allowed them to send their children to school?
But Amadeo has exceeded that: I subsidized the builder who built a public housing on condition that it gives buyers a favorable price.

... to be continued ...