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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 particular bank. Michigan Senator James Couzens required 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 penny. Ford and Couzens had actually as soon as been partners in the vehicle service, but had ended up being bitter competitors.
When the negotiations failed, the governor of Michigan stated a statewide bank vacation. In spite of the RFC's determination to assist the Union Guardian Trust, the crisis might not be avoided. The crisis in Michigan led to a spread of panic, first to adjacent states, but ultimately throughout the nation. Day by day of Roosevelt's inauguration, March 4, all states had stated bank holidays or had restricted the withdrawal of bank deposits for cash. 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 vacation. Practically all banks in the nation were closed for service throughout the following week. https://www.primary-bookmarks.win/timeshare-presentation-horror-stories |
