The American System 3/8/10 By: Sara and Dustin

What is the American System? 3/8/10 It was a mercantilist economic plan based on the “American School” ideas of Alexander Hamilton, and expanded later by Friedrick List. It consists of a high tariff to support internal improvements such as road building, and a national bank to encourage productive enterprise and form a national currency. “keeps them alive”

Henry Clay 3/8/10 April 12, 1777 – June 29, 1852 United States Senator from Kentucky for 11 yrs. One of the leading politicians to strengthen the American system. Major supporter of the American System First used the “American system” in 1824 even though he had been working on it for many years before then

System was a new form of Federalism that included: 3/8/10 Support for a high tariff to protect the American industries and generate for the federal govt. Maintenance of high public land prices to generate federal revenue Preservation of the bank of the United States to make the currency stable and rein in risky state and local banks Development of a system of internal improvements, which would bring the nation together and be financed by the tariff and land sales revenue

3 Parts of Henry’s American system 3/8/10 1. High tariffs to protect American “infant” industries 2. Preservation of the Bank of the United States to stabilize the currency and rein in risky state and local banks 3. Development of a system of road & canal improvements

Tariff 3/8/10 The Protective tariff is a 20%-25% tax on imported goods Protects the nations business from foreign competition Congress passed a tariff in 1816 which made European goods more expensive and encouraged consumers to buy cheaper American made goods

National Bank 3/8/10 The establishment of a national bank would promote a single currency-making trading easier Credit issued by the national govt. instead of borrowing it from private banking systems

Industrialization in America 3/8/10 Mass production of goods by machine in contrast to by hand. Creation of factories run intricately by many people at once, providing more jobs. New advances in inventions and applied science. Growth of national network communication system: railroads, telephones, telegraph.

Significant Inventions 3/8/10 Steam Engine: Although the steam engine had already been invented, a man named Thomas Newcommen invented a new design to better improve efficiency and performance. This included gears, a crank- shift, and a utilized cylinder piston to pump water. Spinning Jenny: Improved speed of spinning wool so one person could make more in a matter of hours. Essential in the textile industry.

Work Cited 3/8/10 Wikipedia, Wikipedia. "Wikipedia". Wikimedia Foundation. February 26, Online Highways LLC. "U.S. History.com". Online Highways LLC. February Rosenschein, Robert. "Wikianwsers.com". Answers Corporation. February "Industrial Revolution". Industrial Redvolution. March 6, 2010.