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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 particular bank. Michigan Senator James Couzens required that Henry Ford subordinate his deposits in the troubled bank as a condition of the loan. If Ford concurred, he would run the risk of losing all of his deposits before any other depositor lost a penny. Ford and Couzens had once been partners in the vehicle organization, but had actually become bitter rivals.
When the negotiations stopped working, the governor of Michigan declared a statewide bank vacation. In spite of the RFC's willingness to help the Union Guardian Trust, the crisis might not be avoided. The crisis in Michigan resulted in a spread of panic, first to surrounding states, however ultimately throughout the country. By the day of Roosevelt's inauguration, March 4, all states had declared bank vacations or had actually 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 country that he was declaring an across the country bank holiday. Practically all financial organizations in the nation were closed for service during the following week. https://www.click-bookmark.win/how-much-is-a-timeshare-4 |
