The Role of A. P. Giannini in the 1934 California Gubernatorial Election

Abstract

in American politics. But business political activities are not limited to making such contributions, for in 1934 the Bank of America participated in the California gubernatorial election in several unusual ways. It unsuccessfully attempted, through its head and founder, A. P. Giannini, to persuade the comptroller of the currency, James F. T. O'Connor, to run for governor. With the emergence of Upton Sinclair as the probable winner of the Democratic nomination for the governorship, the bank sought to have California Democrats unite behind a single candidate who could defeat him. This end also was not accomplished. A. P. Giannini then worked with high officials in the Roosevelt Administration on a plan to secure Sinclair's withdrawal from the gubernatorial race in favor of Raymond Haight, a progressive Republican running as an independent. The failure of that step eventually led to Giannini's endorsement of conservative Frank Merriam, the Republican nominee. What is striking about these actions is that nearly all of them demanded working within the Democratic Party. Many large businesses had, after all, become cool towards Roosevelt in 1934. Cooperation with the Democrats also was a drastic change in the stance of the Bank of America, which had allied itself with the Republicans throughout most of its existence. The search for the explanation of this change must be a primary task in examining the Bank of America's role in the 1934 election. It means an analysis of four main factors: the 1920s conflict with the Federal Reserve Board over the expansion of the bank's branch banking system; the conflict with the head of the San Francisco Federal