Underwood Tariff Act
What is a tariff?
A tariff is basically a tax on imported or exported goods. A tariff usually was only put on certain goods like woolens, iron, steel, farm machinery and many raw materials and foodstuffs.
What was it?
An act passed in 1913 by Woodrow Wilson that lowered tariff on shipped goods. It lowered the tariff rate from 40% to 25%, which is a significant amount. This act also reinstated income tax. Anyone that made over 3,000 to 4,000 a year had to pay 1% income tax to the government, and the richer you were, the more you had to pay.
How it affected people?
It’s hard to tell how it impacted our society because of the outbreak of World War l. Much more goods were moving through our ports because of the high demand of steel and other minerals during the war, which I guess the act helped us manufacture more weapons and buildings. White men who were multi millionaires sometimes got rates as low as 7%, while most people got the standard 25% to 26%.
My opinion…
I think the Underwood Tariff Act was overall a very good decision. It helped lots of businesses flourish and more easy shipping during World War l. It was also a smart way of earning the government money through 1% tax.
"Revenue Act of 1913." Wikipedia. Wikimedia Foundation, 30 June 2013. Web. 24 Sept. 2013. <http://en.wikipedia.org/wiki/Revenue_Act_of_1913>.
Federal Reserve Act
What was it?
An act passed in congress December 23, 1913. This act set up the Federal Reserve System which was much needed at the time. President Woodrow Wilson signed this note into law, which is a plus for Woodrow Wilson.
What is the Federal Reserve System?
Many people don’t know what the Federal Reserve System is. It is the central banking system in the United States of America. The act set up the system and allowed them legal authority to process Federal Reserve Notes, which is commonly known now as the U.S. dollar.
Why was it important?
The main reason this act was so important was because of the Panic of 1907. What happened was that the New York stock market dropped 50% causing a financial crisis. Because the stock crashed so hard, many banks went bankrupt and people tried getting money out of their bank before it was all lost.
More details…
The act set up 12 regional Federal reserve banks, and each has their own branches, board members and district boundaries. The system was to be run by 7 people on the federal reserve board and was picked by the president and passed by congress. All banks in the U.S. were required the join the federal reserve system and required them to buy non-transferable stocks.
"Federal Reserve Act." Wikipedia. Wikimedia Foundation, 13 Sept. 2013. Web. 24 Sept. 2013. <http://en.wikipedia.org/wiki/Federal_Reserve_Act>.
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