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In mid-February 1933, banking problems established in Detroit, Michigan. The RFC was prepared to make a loan to the distressed 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 agreed, he would run the risk of losing all of his deposits prior to any other depositor lost a penny. Ford and Couzens had actually when been partners in the automobile company, but had actually become bitter competitors.
When the settlements stopped working, 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 prevented. The crisis in Michigan resulted in a spread of panic, first to nearby states, however eventually throughout the nation. By the 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 first serve as president, on March 5 President Roosevelt revealed to the nation that he was stating an across the country bank vacation. Practically all banks in the country were closed for business throughout the following week. https://www.bookmark-belt.win/timeshare-rentals-orlando-florida |
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