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In mid-February 1933, banking problems established in Detroit, Michigan. The RFC wanted to make a loan to the troubled 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 particular 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 run the risk of losing all of his deposits prior to any other depositor lost a cent. Ford and Couzens had actually when been partners in the vehicle service, but had actually ended up being bitter competitors.
When the negotiations stopped working, the governor of Michigan declared a statewide bank holiday. In spite of the RFC's determination to help the Union Guardian Trust, the crisis might not be averted. The crisis in Michigan led to 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 actually restricted the withdrawal of bank deposits for money. As one of his first serve as president, on March 5 President Roosevelt announced to the nation that he was stating a nationwide bank holiday. Nearly all banks in the country were closed for business throughout the following week. http://fh7707pk.bget.ru/user/ropherisnv |
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