lumley - breaking the banks in motor city (2009)

[...]... to explain to his partner Henry Ford the difficulty of obtaining cash to carry out the business of the Ford Motor Company Ford, in response, said he would simply go to the various banks and take out the money on deposit and bring it back to pay the workers Couzens was incredulous “But this money is not in the banks! You cannot think the money is in the banks? ” Ford answered, “Certainly it is there.”7... often-contentious father-son relationship between the two Fords was a dominant and continuous theme during the 25 years of Edsel Ford’s presidency One overriding factor regarding the two men and the Ford Motor Company cannot 27 Breaking the Banks in Motor City The Big Three: (From left to right) Edsel B Ford, Alfred P Sloan, Jr., and Walter P Chrysler Taken outside the U.S Senate in April 1934 when the. .. banking problems As the stock market continued to fall, the values of assets held by the banks deteriorated A 13 Breaking the Banks in Motor City decreasing market for securities prevented banks from gaining funds to meet depositors’ demands This often brought about steep discounts in security values, as banks needed to obtain cash Loans that had been issued were now called in, resulting in a further... been shown in the management of the Guardian Group, and it soon became clear to Leyburn that the purpose of the meeting was to get him to support the Guardian’s loan application to the Reconstruction Finance Corporation The drama of the specially held Sunday meeting, and the blunt words 11 Breaking the Banks in Motor City from Ernest Kanzler, were indeed an attempt to in uence Leyburn to back the Guardian... present at the White House meeting on February 9 was Secretary of Commerce Roy D Chapin In his campaign for reelection in 1934, 25 Breaking the Banks in Motor City Vandenberg enlisted his close personal friend, Chapin, to prepare the groundwork for his campaign.51 Chapin, whom we will see had many interests in the looming crisis in Detroit, was by 1934 back in Detroit as head of the Hudson Motor Car... been neglected is the role of the leaders of the auto industry in a significant event in American history: the Detroit banking crisis of 1933 The Detroit banking crisis has been explored, but not the link between the banking crisis and the major executives of the auto industry, and the consequences of their involvement By 6 Introduction 1929 auto industry leaders had reached great heights in American life... of the RFC came to the conclusion that another means was available to resolve the problem In the meeting they asked, “Why should we bail out Mr Ford?” As Leyburn went on to say, the people in the meeting “figured he should come to the rescue up there.”33 Near the end of the meeting the RFC group also told Ernest Kanzler and Clifford Longley, the Guardian representatives, that they should get the backing... is how the dealings of the individuals brought about the crisis, and how their actions led to the consequences of the bank closures No matter who is blamed, the results remain the same: the banks were closed, leading to the dire situation on March 4, 1933 The facts also remain the same: the federal government assumed economic powers at the expense of those who previously had that power Just as the election... There is no record that any of the other participants in the White 23 Breaking the Banks in Motor City House meeting spoke in favor of an RFC loan As has been noted, the meeting was an attempt to find a way to resolve the immediate crisis in Detroit by having Henry Ford and James Couzens provide the necessary financial guarantees, with some assistance from General Motors and the Chrysler Corporation Couzens’s... House meeting the evening of February 14, when the banks were closed, there were many other chances to prevent the impending disaster And from February 14 to the inaugural day, March 4, there were seventeen days to contain the effects of the Detroit bank closures Many people were involved in meetings and negotiations, but no solutions came about In this time of need, none of the foremost industrial . h0" alt="" Breaking the Banks in Motor City This page intentionally left blank Breaking the Banks in Motor City The Auto Industry, the 1933 Detroit Banking Crisis and the Start of the New Deal DARWYN. many organizations and institutions, including the banking system. Breaking the Banks in Motor City 12 In the 1920s, 5,411 banks filed for bankruptcy in the U.S. Most of the failures were small banks in rural. Motor City : the auto industry, the 1933 Detroit banking crisis and the start of the New Deal / Darwyn H. Lumley. p. cm. Includes bibliographical references and index. ISBN 97 8-0 -7 86 4-4 41 7-5 softcover