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In mid-February 1933, banking difficulties developed in Detroit, Michigan. The RFC was ready to make a loan to the distressed bank, the Union Guardian Trust, to avoid 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 struggling bank as a condition of the loan. If Ford concurred, he would risk losing all of his deposits before any other depositor lost a cent. Ford and Couzens had when been partners in the vehicle service, but had actually become bitter competitors.
When the negotiations failed, the guv of Michigan declared a statewide bank holiday. In spite of the RFC's willingness to help the Union Guardian Trust, the crisis could not be averted. The crisis in Michigan resulted in a spread of panic, initially to surrounding states, however ultimately throughout the country. By the 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 nation that he was declaring a nationwide bank vacation. Practically all banks in the nation were closed for organization throughout the following week. http://fr3809hv.bget.ru/user/fearanyiyn |
