THE Michigan bank holiday started the banking panic—the Maryland moratorium clinched it. All over the country bankers, business men and government officials had been hoping against hope that the Detroit fiasco could be localized, and that the old banking order could be maintained for at least a while longer. The collapse in Maryland was the last straw, and popular confidence broke down completely under it.

Nevertheless, over the week-end attempts were still being made to patch things up. The Detroit bankers, distraught after continuous conferences through the previous week, finally agreed to turn their banks over to Henry Ford, who agreed to reorganize them as sole stockholder and release ...

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