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In mid-February 1933, banking difficulties developed in Detroit, Michigan. The RFC wanted to make a loan to the troubled 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 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 actually as soon as been partners in the automobile company, but had actually become bitter competitors.
When the settlements stopped working, the guv of Michigan declared a statewide bank holiday. In spite of the RFC's determination to help the Union Guardian Trust, the crisis could not be avoided. The crisis in Michigan resulted in a spread of panic, first to adjacent states, however eventually throughout the nation. Every day of Roosevelt's inauguration, March 4, all states had stated bank holidays or had limited the withdrawal of bank deposits for money. As one of his very first acts as president, on March 5 President Roosevelt revealed to the country that he was stating an across the country bank holiday. Practically all banks in the nation were closed for organization during the following week. https://www.click-bookmark.win/i-want-to-buy-a-timeshare |
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