| Bio: |
In mid-February 1933, banking problems established in Detroit, Michigan. The RFC was ready to make a loan to the struggling bank, the Union Guardian Trust, to avoid 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 demanded that Henry Ford subordinate his deposits in the distressed bank as a condition of the loan. If Ford concurred, 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 service, however had become bitter rivals.
When the negotiations failed, the governor of Michigan declared a statewide bank vacation. In spite of the RFC's determination to help the Union Guardian Trust, the crisis could not be averted. The crisis in Michigan led to a spread of panic, first to nearby states, however eventually throughout the country. Day by day of Roosevelt's inauguration, March 4, all states had stated bank holidays or had actually limited the withdrawal of bank deposits for cash. As one of his first serve as president, on March 5 President Roosevelt announced to the nation that he was stating a nationwide bank vacation. Nearly all banks in the nation were closed for company throughout the following week. http://b66030rr.beget.tech/user/schadhqawa |
