How did banks respond to the need for quick cash the day after the quake, when there were no ATMs, and databases were not even a figment of anyone’s imagination?
Take Gertrude Atherton 
, a member of a prominent Bay Area family and writer of note at the time. She said (from the Argonaut):
... I had exactly $4.50 in my purse. Two days later I managed to get $25 from a country bank and today, in despair, I telegraphed to my New York bankers to send me money by registered mail. And I am far better off than many, who are wealthier but have their all out here.
Unfortunately, not everyone had a New York banker (do you?).
Bank records—remember passbooks?—were trapped in vaults and so was most of reserve currency. The vaults were buried under tons of debris or worse, untouchable due to the smoldering heat to which they were exposed during the fire.
Six days after the quake, a consortium of banks known as the San Francisco Clearing House came up with a plan of action. In order to pay out depositors, member banks of the Clearing House had to unite with the U.S. Mint by sending the Mint currency to be used to back advance payouts. Banks, then, would issue checks to its clients that said, “good at the U.S. Mint.” In turn, clerks at the Mint would honor the advances. But here’s what makes it interesting: these transactions were honored without account records! Even better, Wells Fargo lost only about $200 in paying out thousands.
Leave a comment
Please Note
By posting content on this Blog, you expressly grant Wells Fargo (and its affiliates) the right to use or distribute the posted content in any form, worldwide, and in perpetuity. You also agree to indemnify and hold Wells Fargo harmless against all liabilities, losses, claims and expenses arising from your posting of materials on this Blog (this includes any claim that Wells Fargo's use of the content or images infringes on someone else's intellectual property rights). Comments published on this Blog do not necessarily reflect the views of nor are they endorsed by Wells Fargo. We reserve the right not to publish comments that violate our Community Guidelines. NOTE: If you'd like a response to your comment, please use this form.