To help solve the problem of political corruption in the United States during that time Congress decided to pass a law called the “Underwood Tariff Act” on October 1913. This law reduced tariffs to their lowest levels in more than 50 years. It also presented a graduated income tax, which would determine many people at different rates according to their income levels. There were also other laws that were passed including the “Federal Reserve Act”, Clayton Antitrust Act, and Federal Trade Commission. The Federal Reserve Act was passed in 1913 and created a central fund from which banks could borrow money to prevent collapse during a financial panic. It also established a three- tier banking system and for the first time, the Federal Reserve
