By mid-1930, many, including Mellon, believed that the economy had already experienced the worst effects of the stock market crash. He did not object to the Smoot–Hawley Tariff Act, which raised tariff rates to one of the highest levels in U.S. history. Despite the optimism of Hoover and Mellon, in late 1930 the economy went into a deep slump, as gross national product declined dramatically and numerous workers lost their jobs. While numerous banks failed, Democrats won control of Congress in the 1930 mid-term elections. As the economy declined, so did Mellon's popularity, which was further damaged by his opposition to another bonus bill for veterans. In mid-1931, the country entered a deep depression and, at Hoover's request, Mellon negotiated a moratorium on German debt repayments. After Mellon returned to the United States in August 1931, he was confronted by another series of bank failures. Among the banks that failed was the Bank of Pittsburgh, the lone remaining major Pittsburgh bank not controlled by the Mellon family. Again following Hoover's lead, Mellon presided over the creation of the National Credit Association, a voluntary initiative among the larger banks that was designed to assist failing institutions. As the National Credit Association proved to be ineffective at stemming the tide of bank failures, Congress and the Hoover administration established the Reconstruction Finance Corporation to provide federal loans to banks.