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Introduction – Herbert hoover was Americas 31st president and a good businessman he served his duty for America about 4 years from 4 th march 1929 to 4th march 1933 when world was in economic depression that took place in the year 1930 and is most widely spreed depression in 20 th century and was mostly started in America and the major cause of this stock market crash. The policies of hover which are very effective-: Hawleys Traffic act- Basically he has taken office to raise taxes on agriculture to help farmers who are stumbling because of the farm crises during 1920’s his this attempt of raising taxes on agriculture became connected with the attempt of raising taxes on other goods, due to the objection of many economist in 1930’s congress and hover signed the law name as Hawleys Traffic act. In this government imposed taxes on thousand of imported items . The main part of imposing tax is to incourage other to buy American made products by increasing the price of good and services into a country which are from abroad for sale. As at that time economic depression was spreaded in most of the country including france and Canada which retailed by raising taxes on goods which are imported from America.The result of this act was good as it worsen the tdepression.Progressively republicans such as senator borah were shocked when hover signed the bill but hover relations with the party has never recovered. Revenue Act of 1932-Hoover signed this law to recover from economic depression and with this he has a victory on progressive taxation and also doubled the estate tax and increase the rate of taxes on top earners about 63% on their net income and it is realy high from 25% when Herbert Hoover took office.The 1932 Act also increased the tax on the net income of corporations from 12% to 13.75%.Under Hoover, the estate was doubled and cooperate tax were raised by almost 15%. Also, a "check tax" took effect, placing a 2-cent tax on all bank checks. Economists William D. Lastrapes and George Selgin conclude that the check tax was "an important contributing factor to that period's severe monetary


contraction. Despiteof the Revenue Act, the federal government continued to run a budget shortage. Reconstruction Finance Corporation- The Hoover administration drafted legislation for the Reconstruction Finance Corporation (RFC). The RFC, which would be government-run and funded, was designed to stabilize the nation's financial structures by providing credit to banks weak and strong, as well as to other entities like railroads and agricultural organizations; Hoover hoped that by improving the nation's financial health, public confidence would grow and that both employment opportunities and international trade would expand. Congress created the RFC in early 1932. While the RFC, like the NCC, often failed to help smaller banks, historians and economists now sing its praises for saving many of the nation's larger financial institutions from ruin. The RFC, however, did not fulfill Hoover's hopes by cutting into unemployment. Hoover also bowed to growing public and congressional pressure for emergency federal relief. In the summer of 1932, he signed the Emergency Relief Construction Act, which provided $2 billion for public works projects and $300 million for direct relief programs run by state governments. While the bill only appropriated a pittance for direct relief and placed many restrictions on how the $300 million could be used, its endorsement by Hoover testified, at least partially, to the failure of voluntarism and private relief. Hoover, however, saw the act as a temporary measure to provide emergency relief, he remained resolutely opposed to largescale and permanent government expenditures on relief and welfare. What more might he have done? He has major hand in industrial part and tools-: Hoover had been the American most suited to be president. He had performed brilliantly as head of the American Relief Administration after World War I. In 1920, The New Republic and Franklin Delano Roosevelt urged him to run for president as a Democrat. Hoover chose not to run. Instead, he became perhaps the greatest of all commerce secretaries. He was responsible, among other things, for persuading industry to reduce overall costs by standardizing industrial parts and tools. Because of Hoover’s innovations, an auto mechanic could repair any American car.


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