American System
Developed by Henry Clay
What is it?
Due to nationalism Henry Clay developed the American System. The American System had three parts: a strong banking system, protective tariff, and internal improvements.
The parts
1. Strong banking system
- A strong banking system is necessary in order to provide easy and abundant credit. This would also support the expansion of business and trade.
2. Protective tariff
- Because of this, the eastern manufacturing would flourish. This would support the sale of American goods over those of foreign goods.
3. Internal improvements
- Roads and canals would knit the nation together and would be financed by the tariff and land sales revenues.
Henry Clay
President Madison presenting the American System
Henry Clay's new form of federalism called the American System