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In mid-February 1933, banking troubles 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 among 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 struggling bank as a condition of the loan. If Ford concurred, he would run the risk of losing all of his deposits before any other depositor lost a cent. Ford and Couzens had as soon as been partners in the automotive organization, however had actually ended up being bitter competitors.
When the settlements stopped working, the guv of Michigan declared a statewide bank holiday. In spite of the RFC's willingness to help the Union Guardian Trust, the crisis could not be prevented. The crisis in Michigan resulted in a spread of panic, initially to nearby states, but eventually throughout the nation. By the day of Roosevelt's inauguration, March 4, all states had stated bank vacations or had restricted the withdrawal of bank deposits for money. As one of his first acts as president, on March 5 President Roosevelt revealed to the nation that he was stating an across the country bank holiday. Almost all banks in the nation were closed for service during the following week. http://druzhba5.dacha.me/user/marykaytvo |
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