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| Bio: |
In mid-February 1933, banking problems established in Detroit, Michigan. The RFC wanted to make a loan to the struggling bank, the Union Guardian Trust, to avoid 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 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 company, but had actually become 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 might not be avoided. The crisis in Michigan resulted in a spread of panic, initially to adjacent states, but ultimately throughout the nation. By the day of Roosevelt's inauguration, March 4, all states had actually declared bank holidays or had restricted the withdrawal of bank deposits for cash. As one of his first function as president, on March 5 President Roosevelt revealed to the country that he was declaring an across the country bank holiday. Almost all banks in the nation were closed for service during the following week. https://mirdorog.by/user/isiriaiyha |
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