Hoover did do a lot on the federal government policies, which was considered both good and bad. In agriculture he did take direct action, and used the federal farm board to gain stabilization in 1929. He was particularly keen on increasing the grain prices and reducing the stock piles but that didn’t work because the farmers produced a lot more grain than what Hoover had predicted. One year later, in 1930, the tariffs of the federal government policies became high at all times. Yet he did not attempt to reduce this in any way. Some might have thought that this was inactivity.
During this period a lot happened with the problem of the war debt that United States had. The value of international trade fell in a total by $500 million, and the following year it fell by 1.2 billion. This was when the Wall Street Crash and depression spread to Europe. This caused particularly the Germans to be affected by the demise of American credit. For 18 months Hoover announced that the United States of America would defer the collection of these debts, but only if the other countries would do exactly the same. He announced this on 21 July 1931.
The emergency relief act came in 1932 when the federal government gave individual states money to pay for welfare. This was a direct action, which established the president’s emergency committee for employment. Hoover then introduced voluntarisms, which were a propaganda used to get companies to maintain employment levels. By doing this Hoover thought it would encourage people with a job and money to buy. He also encouraged state governments to establish public works. In 1932 announced the federal home loan bank act. This meant that you could get a loan from government to pay off home loans, but the maximum was 50% of the value of the property, which was not enough. In addition in 1932 there was the reconstruction finance crops where the federal would give rescue loans to banks that were in trouble and big loans to big companies but the small companies would have missed out due to business issues. So in the summer of 1932 the emergency relief and construction act (RFC) was created. This gave power to issue loans to states that had no money in order to finance their public works.
A part of the federal government policies, which got Hoover a bad image and became unpopular was the war veterans’ case. Before he became president, the soldiers that participated and fought in wars for United States got an allowance. Hoover, being individualistic, thought it was the wrong thing to do and cut off that regulation. In March 1932 the veterans began to protest in Washington, demanding more financial aid. Hoover did not agree or compromise to the request, and actually used the US army to control the march, which made Hoover appear very bad and heartless.