| This is the first part of the story of
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| | piers at the port being a convincing
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| Amadeo Peter Giannini, an Italian
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| | person wasn't enough and Amadeo - at the
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| emigrant who arrived in America still in
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| | age of 15 was already 6 feet tall and
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| his mother's womb. Amadeo was born in
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| | weighted 180 pounds - was able to make
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| 1870 in San José California, and
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| | his point even by taking part in
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| starting without anything, in just 40
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| | brawls.The company was doing so well that
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| years he was able to create the world's
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| | Scatena, made him a partner in the
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| biggest bank.
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| | company to award him, first with a 30%
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| In 1902 Giannini was already the
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| | share and then increased it to 50%.By the
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| director of a San Francisco bank , where
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| | age of 20 years old, Amadeo Peter
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| a lot of the Italian emigrants went to
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| | Giannini had already become one of the
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| send their savings to their homeland.
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| | most successful and admired in the
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| Giannini regretted that the Italians had
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| | Italian colony. Known for being a correct
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| to pay 8/10% tax for the transfer and
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| | person and admired for his fascination.
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| they had to accept unruly exchange rates.
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| | He was more than 6 feet tall and most of
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| For two years he struggled to change the
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| | the girls considered him one of the most
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| bank's policies, which only paid
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| | handsome men of the city. In 1892, at 22
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| attention to the well-off clients.
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| | years old, he chose a woman who was his
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| | same age Clorinda Flores Cuneo, who was
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| | the daughter of one of the richest
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| | Italo-americans in San Francisco. And
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| When he realized that there was nothing
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| | this turned out to be one of the many
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| to do, in 1904 he decided to open a new
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| | lucky events of his life.As Giannini made
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| bank that he called Bank of Italy.
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| | his way on the road to success, he also
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| Sending money from his bank cost only 2%
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| | revealed to be extremely lucky thanks to
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| and the exchange was fair. It may seem
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| | his parents taught him deep respect for
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| incredible, that this modest bank, which
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| | the values of tradition. This tradition
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| was seated in a saloon in North Beach, a
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| | was the exact opposite of the
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| poor part of San Francisco where the
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| | conservatism, because they taught him the
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| Italian community lived, became the
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| | base values, that everyone should take
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| biggest bank in the world.
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| | their own life path, banking on the
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| The most surprising thing is not what he
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| | certainty that they are heading in the
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| did, but how he did it! All his life he
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| | right direction.
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| operated totally out of the logical way
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| | And all his life, Giannini continued in
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| of making profits with the ambition of
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| | this manner, without being attracted by
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| helping the people that were the most in
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| | either the euphoria of success, or by
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| need.His life demonstrates that that even
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| | greed that people usually get when they
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| if you don't place money as the highest
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| | become rich.In 1901 he thought that it
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| value, it's possible to make considerable
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| | was no longer worthwhile to continue
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| profits and make money for yourself and
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| | working in order to make more money. He
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| others.
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| | had an income of $250 a month from
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| But let's with all great stories, let's
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| | property rentals and he decided to sell
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| start from the beginning.Amadeo Peter
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| | half of his part of the company
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| Giannini's parents were two emigrants.
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| | "L.Scatena & C" to his employees who
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| Just like many others who left their
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| | would paid him with their future earnings
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| birthplace searching for a better life:
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| | - his share was valued at $100.000 - and
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| Favale di Malgaro, which was a hamlet in
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| | this assured him an income that allowed
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| the inland of Ligure where his
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| | him to pay for daily needs and it allowed
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| grandparents and also his great
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| | him to not have to worry about daily
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| grandparents were born. A small village
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| | tasks and it gave him the opportunity to
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| with
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| | be able to invest in himself, to read,
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| two thousand citizens, surrounded by the
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| | travel and to get to know the world.
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| mountains that is found just behind
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| | Concerning this point, in his biography
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| Rapallo, in the Fontanabuona valley where
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| | it is said that at the age of thirty
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| only a few more than 500 people live
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| | three, one year before establishing the
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| today, but over the last century more
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| | Bank of Italy, he had already developed a
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| then three thousand of Favale's citizens
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| | theory about money: "I don't want to
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| went to America, and most went to
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| | become too rich, " he said, "because not
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| California.
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| | one rich person controls richness, but is
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| Giannini's house was modest and isolated
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| | controlled by it". And contrary to
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| and built on a hill made of stone and
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| | people who preach goodness, but who don't
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| clay, with just one big room that was
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| | practice these principles, Giannini stuck
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| above a barn and a stable.Right after
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| | to this rule.In 1902 the death of his
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| they got married, A.P. Giannini's
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| | father in law marked a turning point in
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| parents, Luigi who was 29 years old and
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| | Giannini's life, who was already well off
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| Virginia Demartini who was fourteen,
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| | due to his well known integrity and
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| decided to go to America with the idea of
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| | correctness, was asked by the large
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| making fortune and to escape from the
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| | number of his wife's siblings to manage
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| misery - that could even be considered
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| | the entire family's fortune, that was
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| dignifying- where the mountainous people
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| | made up roughly of half a million
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| lived.
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| | dollars.Among the assets that Amadeo
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| When they arrived in California - with
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| | Giannini managed, there were also of one
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| the railway trans continental railway
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| | of the most important banks in San
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| that was just inaugurated, they decided
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| | Francisco, the COLUMBUS SAVINGS AND LOAN,
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| to venture North and they stopped in San
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| | who asked him to become their senior
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| José, a small city between Los Angeles
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| | manager that same year.Giannini thought
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| and San Francisco where, they hoped to
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| | it would be possible have a prestigious
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| buy a piece of land with money that they
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| | position where he would have been able to
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| collected from relatives before leaving
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| | help society, so he decided to dedicate
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| Italy. But the information that they had
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| | himself with his heart and soul.Giannini
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| on the price of the land was not up to
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| | worked their for 2 years, hoping that he
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| date and they realised that they wouldn't
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| | would be able to change their financial
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| have been able to buy a piece of land big
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| | strategy.The partners with a bigger stake
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| enough for them to survive. They rented a
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| | at COLUMBUS worked only with well off
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| house with a few rooms and they
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| | people and offered credit only to
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| transformed it in a type of guest house.
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| | companies and entrepreneurs who were
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| After six months of working very hard the
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| | already consolidated.
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| guest house became an Inn with twenty
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| | Giannini said that a dignified banker
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| rooms. And that was where on May 6th,
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| | shouldn't refuse credit to anyone because
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| 1870 the most important banker in the
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| | he was honest
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| world, Amadeo Peter Giannini was born.The
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| | His dream was a bank for people who had
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| hordes of emigrants from all over the
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| | never entered in a bank before, a bank
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| world, arrived in California attracted
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| | for the emigrants.After coming to
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| after the discovery of gold, helped
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| | California the poverty stricken people
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| Giannini Inn to prosper and after a few
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| | who had nothing, were eager to work to
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| years it became a Hotel.
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| | feed themselves, lived between hardship
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| For Luigi Giannini, the hotel proved to
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| | and humiliation. They didn't know the
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| be a small goldmine which he sold after a
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| | language and the Americans from the older
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| few years. And with the money he made
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| | protestants class looked at them with
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| from it he bought a piece of land with 40
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| | distrust and kept their distance from
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| acres halfway between San Francisco and
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| | them.Giannini, remembering his origins,
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| the bay. A perfect choice, since later
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| | knew that most of the Italian immigrants,
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| it became an area of considerable value.
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| | and particularly those who where not only
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| But before he could enjoy the benefits
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| | armed with desperate courage but also
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| of his choice, six years after he bought
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| | with descent principles, would become
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| it, Luigi Giannini was killed by an
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| | backbone of development in California.
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| employee; in an argument over a "one
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| | He then resigned and dedicated his life
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| dollar" debt. A crying Amadeo saw the
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| | to them.
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| scene first hand and was the one who came
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| | In spite of the fact that Amadeo had
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| to save his dying father.From that moment
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| | left his father's company, when he
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| Amadeo realized that money could poison
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| | decided to open a bank, his stepfather
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| you, or even worse, could kill you.
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| | Scatena was happy to take part in this
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| Virginia became a widow when she was
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| | adventure investing his own patrimony and
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| only 22 years old. She left behind three
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| | collaborated actively. But once he
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| children, the oldest being Amadeo, who
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| | decided to establish the bank, he had to
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| was seven years old at the time. Virginia
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| | find a headquarters. Giannini knew that
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| was a beautiful woman, and above all
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| | the emigrant Anania Quilici, who had a
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| there where not so many women left in
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| | bar at a very strategically North Beach
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| California, so she had the possibility to
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| | intersection, wanted to quit. And she
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| choose a new husband from many suitors
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| | offered her rental contract for 1250.On
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| and she chose well.She married Lorenzo
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| | the 17th October 1904 Amadeo Peter
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| Scatena who was twenty-six years old at
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| | Giannini opened The Bank of Italy.
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| the time, who's only asset was a pair
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| | Investing all that he had, as well as his
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| of horses and a carriage that he used to
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| | spouse's entire patrimony, his step
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| transport produce to the docks on the San
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| | father's major contribution and money
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| Francisco bay. He actually was quite
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| | from partners from Italian
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| clever, a characteristic that developed
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| | origins.However, once he established the
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| with his loving spouse's help.Scatena was
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| | bank he needed publicity. He was great
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| completely in love with Virginia, and as
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| | doing this job, since he was well known
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| someone who really knew how show
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| | by almost all the Italian emigrants. He
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| affection, also loved her three children.
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| | went around to every house, offering
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| He particularly was fond of the oldest
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| | services, help and loans, he suggested to
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| one, Amadeo, who even while studying,
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| | start businesses, to buy land, real
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| helped his stepfather not to tend the
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| | estate, and to open companies and in any
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| fields, but also to manage the produce
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| | case to start their own businesses.In the
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| business. After a few years Lorenzo
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| | beginning of the nineteenth century it
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| Scatena who took his wife's suggestion
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| | wasn't easy to have credit from a bank,
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| from his wife that the produce business
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| | especially for immigrants. The
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| was more profitable than farming and so
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| | institutions didn't agree to give loans
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| they moved to San Francisco in 1882,
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| | of less than $200 and, in case of need,
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| where ships arrived every day to stock up
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| | the emigrants had to turn to loan
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| on fresh fruits and vegetables. Luigi
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| | sharks.At the Bank of Italy, after asking
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| bought his produce directly from the
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| | a few questions, Giannini gave loans
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| farmers in the California valleys,
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| | starting at $25 and as a guarantee he
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| brought them to the shore and then sold
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| | looked at the calluses on their hands and
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| them directly to the ships, who were just
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| | at their faces. He personally chose his
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| berthing their ships. Scatena became in a
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| | personnel who had to know many languages.
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| very short time a very successful produce
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| | In particular he wanted Pedrini, the
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| distributor. The farmers appreciated
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| | teller at COLUMBUS to work for him. In
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| Scatena for his politeness and at the
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| | order to convince him he offered double
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| dock his was known as a real
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| | the salary. His partners protested but
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| gentleman.After going to school in San
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| | Amadeo said that Pedrini was a good
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| Jose until the age of 12, he continued to
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| | worker, courteous with the businessmen,
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| study in San Francisco, where he took a
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| | and polite with people that had problems.
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| five month economics course. But while
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| | In order to ease the protests he decided
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| studying he had already started to take
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| | to give half of his own salary to
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| part in his father's business. He read a
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| | Pedrini. This clause was nullified after
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| lot, but above all he went around to get
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| | they had seen that Giannini was right.
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| all the information about new techniques
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| | Giannini didn't want to be the president
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| in agriculture. A lot of the emigrants
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| | of The Bank of Italy, and since he didn't
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| were farmers from all different countries
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| | need the power that derived from the
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| and Amadeo asked for explanations
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| | position, he assumed the position of
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| innovative methods being used all over
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| | vice-president and, after only a year he
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| the world. He then suggested to the
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| | made his stepfather Lorenzo Scatena the
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| farmers what they should grow and he gave
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| | vice president.One of the regulations
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| them strategies to increase production.
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| | that was put into effect was that the
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| Above all he suggested early harvesting,
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| | administrators would have worked without
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| when the first fruits were still fresh
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| | pay, until the Bank of Italy started
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| and tender. They weighed less , but they
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| | making a profit.He decided to have a
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| were worth much more. They not only were
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| | popular shareholding; he didn't want
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| focusing on the quality of the product,
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| | anyone to have more than one hundred of
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| but they emerged as having the best
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| | the 3000 shares that were distributed. He
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| prices. In addition, he convinced his
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| | also limited the value of the shares to a
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| father to make loans to farmers who
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| | maximum of $100. He made sure himself
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| wanted to buy new equipment, or who were
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| | that went to by bakers, fishermen,
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| going through rough periods, and that way
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| | grocers, plumbers, hairdressers, everyone
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| he was able to create a loyal
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| | who had never been in a bank before. He
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| clientele.Scatena was very proud of his
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| | was only satisfied when he verified that
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| son, not only for his hard work but also
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| | most of the shares were given to
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| for his moral integrity that he had
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| | shareholders who had from one to four
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| taught and that Amadeo had adopted as his
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| | shares.After only two months The Bank of
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| own. And in no time he became the most
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| | Italy had deposits worth $70.000, but the
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| important person in the company, and in
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| | loans were more than $90.000. The
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| eventually Scatenas alter ego. Nobody
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| | partners where worried, but Giannini knew
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| cured the public relations like he did.
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| | that this was the only way to gain the
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| To increase Lorenzo Scatena & Company's
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| | public's recognition and trust. How
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| business he wrote lots of handwritten
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| | could you not be grateful to someone who
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| letters every day, to all the potential
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| | allowed you to rent a decent house or to
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| clients and suppliers. Writing all those
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| | send your children to school?
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| letters he didn't promise anything he
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| | But Amadeo went beyond that: he
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| couldn't maintain. And if the didn't
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| | subsidized builders who built public
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| answer his letter, , he dressed up
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| | housing on the condition that they gave
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| elegantly, he went to see them, and
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| | favourable prices for the buyers.... to
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| concluded his business in person.On the
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| | be continued ...
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