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.