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In mid-February 1933, banking difficulties established 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 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 distressed 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 as soon as been partners in the vehicle company, however had become bitter competitors.
When the negotiations stopped working, the guv of Michigan stated a statewide bank holiday. In spite of the RFC's desire to assist the Union Guardian Trust, the crisis could not be avoided. The crisis in Michigan led to a spread of panic, initially to nearby states, however eventually throughout the nation. By the day of Roosevelt's inauguration, March 4, all states had declared bank holidays or had limited the withdrawal of bank deposits for cash. As one of his very first acts as president, on March 5 President Roosevelt announced to the nation that he was declaring an across the country bank holiday. Practically all banks in the nation were closed for company throughout the following week. https://www.bokkmarking-signs.win/timeshare-contract-termination |
