Economic Body Blow The Great San Francisco Earthquake is the worst financial and humanitarian catastrophe since the Civil War. Three-quarters of San Francisco residents are suddenly homeless. Like Chicago, however, San Francisco bounces right back. Just a year later, New York manages to stave off panic with the help of America's leading industrial financier, J.P. Morgan.

	Catastrophic Destruction These views give some idea of the extent of destruction during the San Francisco earthquake.
	Dodging a Bullet The Panic of 1907 is similar to previous panics (in 1893, 1873, 1857 and 1837) in that large numbers of banks and businesses fail. It's different in that New York now has a financial elite with enough resources to halt the breakdown. As a result, the panic is much shorter than previous episodes. Still, it shows that fluctuating business conditions can unexpectedly erupt into crisis at any time. Beyond that, it highlights the need for a national bank big enough to provide financial relief, should smaller regional banks falter.