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In mid-February 1933, banking problems developed in Detroit, Michigan. The RFC wanted to make a loan to the troubled 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 demanded that Henry Ford subordinate his deposits in the distressed 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 as soon as been partners in the automotive business, but had ended up being bitter rivals.
When the negotiations stopped working, the governor of Michigan declared a statewide bank vacation. In spite of the RFC's desire to assist the Union Guardian Trust, the crisis could not be prevented. The crisis in Michigan resulted in a spread of panic, initially to adjacent states, however eventually throughout the nation. Day by 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 serve 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 country were closed for service during the following week. https://www.bookmarking-presto.win/how-to-sell-my-timeshare |
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