| Bio: |
In mid-February 1933, banking troubles 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 required that Henry Ford subordinate his deposits in the troubled 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 penny. Ford and Couzens had once been partners in the automotive business, but had ended up being bitter rivals.
When the settlements failed, the guv of Michigan declared a statewide bank holiday. In spite of the RFC's desire to help the Union Guardian Trust, the crisis might not be avoided. The crisis in Michigan resulted in a spread of panic, initially to nearby states, however ultimately throughout the country. Every day of Roosevelt's inauguration, March 4, all states had actually declared bank holidays or had actually restricted the withdrawal of bank deposits for money. As one of his first function as president, on March 5 President Roosevelt announced to the country that he was stating an across the country bank vacation. Practically all banks in the country were closed for company throughout the following week. http://pilomaterial.info/user/belisavecl |
