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In mid-February 1933, banking problems established in Detroit, Michigan. The RFC was ready to make a loan to the troubled 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 particular bank. Michigan Senator James Couzens demanded that Henry Ford subordinate his deposits in the troubled bank as a condition of the loan. If Ford agreed, he would risk losing all of his deposits before any other depositor lost a cent. Ford and Couzens had when been partners in the automobile organization, but had become bitter rivals.
When the negotiations failed, the governor 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 averted. The crisis in Michigan led to a spread of panic, first to adjacent states, but eventually throughout the nation. By the day of Roosevelt's inauguration, March 4, all states had stated bank holidays or had limited the withdrawal of bank deposits for cash. As one of his first function as president, on March 5 President Roosevelt revealed to the country that he was declaring a nationwide bank holiday. Nearly all financial organizations in the nation were closed for service throughout the following week. https://sims-mod.ru/user/ruvornccls |
