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07-27-2022 |
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In mid-February 1933, banking problems established in Detroit, Michigan. The RFC was willing to make a loan to the troubled 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 specific bank. Michigan Senator James Couzens required that Henry Ford subordinate his deposits in the troubled 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 once been partners in the automobile business, however had actually ended up being bitter rivals.
When the negotiations stopped working, the guv of Michigan declared a statewide bank vacation. In spite of the RFC's desire to help the Union Guardian Trust, the crisis could not be avoided. The crisis in Michigan led to a spread of panic, initially to adjacent states, however ultimately throughout the country. By the day of Roosevelt's inauguration, March 4, all states had stated bank vacations or had limited the withdrawal of bank deposits for cash. As one of his very first serve as president, on March 5 President Roosevelt announced to the nation that he was stating an across the country bank vacation. Nearly all banks in the nation were closed for service throughout the following week. http://photointeriorpro.ru/user/alesleexik |
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