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In mid-February 1933, banking problems developed in Detroit, Michigan. The RFC wanted to make a loan to the distressed bank, the Union Guardian Trust, to prevent a crisis. The bank was one of Henry Ford's banks, and Ford had deposits of $7 million in this specific bank. Michigan Senator James Couzens demanded that Henry Ford subordinate his deposits in the distressed bank as a condition of the loan. If Ford agreed, he would run the risk of losing all of his deposits prior to any other depositor lost a cent. Ford and Couzens had as soon as been partners in the vehicle company, but had actually become bitter competitors.
When the negotiations failed, the guv of Michigan stated a statewide bank holiday. In spite of the RFC's willingness to help the Union Guardian Trust, the crisis could not be avoided. The crisis in Michigan led to a spread of panic, initially to surrounding states, however ultimately throughout the nation. By the day of Roosevelt's inauguration, March 4, all states had actually declared bank holidays or had limited the withdrawal of bank deposits for cash. As one of his very first function as president, on March 5 President Roosevelt revealed to the nation that he was declaring an across the country bank holiday. Almost all banks in the nation were closed for business during the following week. https://heroturko2.net/user/cillieajti |
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