Michigan becomes the first state in the U.S. to declare an indefinite bank holiday, in an attempt to stem the impending collapse of First National Bank of Detroit and the Guardian National Bank of Commerce, the two largest banks in Detroit. First National and Guardian National were threatened with failure if the Ford Motor Company made good on its desire to withdraw all of its deposits in the two banks; Ford needed the cash to cover its $75 million loss in 1932.
After five months of fighting, Japan established the puppet state of Manchukuo in 1932, and installed the last Emperor of China, Puyi, as its puppet ruler. Militarily too weak to challenge Japan directly, China appealed to the League of Nations for help. The League's investigation led to the publication of the Lytton Report, condemning Japan for its incursion into Manchuria, causing Japan to withdraw from the League of Nations. No country took action against Japan beyond tepid censure.