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In mid-February 1933, banking troubles developed in Detroit, Michigan. The RFC wanted to make a loan to the struggling bank, the Union Guardian Trust, to prevent a crisis. The bank was among 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 struggling bank as a condition of the loan. If Ford agreed, he would risk losing all of his deposits before any other depositor lost a penny. Ford and Couzens had once been partners in the vehicle service, but had ended up being bitter competitors.
When the settlements failed, the guv of Michigan stated a statewide bank vacation. In spite of the RFC's desire to assist the Union Guardian Trust, the crisis might not be prevented. The crisis in Michigan resulted in a spread of panic, initially to nearby states, however ultimately throughout the country. By the day of Roosevelt's inauguration, March 4, all states had declared bank holidays or had limited the withdrawal of bank deposits for money. As one of his first serve as president, on March 5 President Roosevelt revealed to the nation that he was stating a nationwide bank vacation. Almost all financial organizations in the country were closed for company throughout the following week. https://dobryakschool.ru/user/merianzoes |
