American System

American System

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  • American System 
  •   This "System" consisted of three mutually reinforcing parts:a tariff to protect and promote American industry a national bank to foster commerce;  and federal subsidies for roads, canals, and other "internal improvements" to develop profitable markets for agriculture.
  • 3. Tariffs (a tax on foreign (imported) goods.)● The government would place taxes on imported goods.● This will get more money for the government; it needs more money to pay for roads (and other improvements).● The tariff is meant to be “protective”­­ it will protect American producers of similar goods by making them cheaper compared to foreign goods.
  • 3 Main Parts of the American System 
  • Portions of the American System were enacted by Congress. The Second Bank of the United States was rechartered in 1816 for 20 years.   High tariffs were maintained from the days of Hamilton until 1832.Despite his uneven success in gaining passage of all aspects of the American System, Henry Clay was proud of the plan.
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