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In mid-February 1933, banking difficulties established in Detroit, Michigan. The RFC was ready to make a loan to the struggling bank, the Union Guardian Trust, to avoid a crisis. The bank was among 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 troubled 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 actually when been partners in the automotive business, 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 desire to assist 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 country. Every day of Roosevelt's inauguration, March 4, all states had declared bank vacations or had actually limited the withdrawal of bank deposits for cash. As one of his very first function as president, on March 5 President Roosevelt revealed to the country that he was stating a nationwide bank vacation. Practically all banks in the nation were closed for service throughout the following week. https://www.bookmarkpage.win/las-vegas-timeshare-1 |
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