| Bio: |
In mid-February 1933, banking difficulties developed in Detroit, Michigan. The RFC was prepared 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 particular bank. Michigan Senator James Couzens demanded that Henry Ford subordinate his deposits in the struggling bank as a condition of the loan. If Ford agreed, he would run the risk of losing all of his deposits before any other depositor lost a cent. Ford and Couzens had when been partners in the automotive organization, but had actually become bitter competitors.
When the settlements stopped working, the governor of Michigan stated a statewide bank holiday. In spite of the RFC's determination to help the Union Guardian Trust, the crisis could not be prevented. The crisis in Michigan led to a spread of panic, initially to adjacent states, however ultimately throughout the country. Day by day of Roosevelt's inauguration, March 4, all states had 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 declaring an across the country bank holiday. Nearly all banks in the nation were closed for company throughout the following week. http://hotel.ksworks.ru/user/cilliekpvq |
