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07-27-2022 |
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In mid-February 1933, banking difficulties developed 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 specific bank. Michigan Senator James Couzens required that Henry Ford subordinate his deposits in the struggling 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 once been partners in the automobile business, but had become bitter rivals.
When the negotiations failed, the governor of Michigan stated a statewide bank holiday. In spite of the RFC's willingness to help the Union Guardian Trust, the crisis could not be averted. The crisis in Michigan led to a spread of panic, initially to adjacent states, but ultimately throughout the country. Day by day of Roosevelt's inauguration, March 4, all states had stated bank holidays or had actually restricted the withdrawal of bank deposits for cash. As one of his first serve as president, on March 5 President Roosevelt revealed to the country that he was declaring a nationwide bank vacation. Nearly all banks in the nation were closed for organization throughout the following week. https://www.bookmark-fuel.win/orlando-timeshare-deal-3 |
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