THE AMERICAN SYSTEM THE ECONOMIC ….

1. THE AMERICAN SYSTEMTHE ECONOMIC …. Tom Lowry Matthew Bhatty Zach Morgan Brendan Crosslin Oak Pinratana Garrett Williams

2. NATIONALISM AFTER THE WAR • The standing army was enlarged to 10,000 troops • The navy was also strengthened • The capital building was rebuilt in full splendor

4. Reasons for the American System • Newly created American industry suffered horribly from the great influx of British goods. • A large central bank was needed to regulate and control credit • Transportation was despicable, especially in the west. Such poor transportational means meant that trade and communication were severly limited from region to region.

5. Henry clay’s three goals • Henry Clay wished for a larger bank that would provide an easy an abundant credit for all citizens. • Henry Clay saw the necessity of a protective tariff to combat British attempts to strangle the infantile American industry. • Transportation was key in Henry Clay’s plans. He knew the only way to unite all regions of the united states was to connect them via a vast network of means of transportation.

6. Big Bank • A large central bank was needed to regulate and control credit • It would control and standardized American currency and grant loans to newly made factories as well as construction projects.

7. Protective tariff • After the war of 1812, England swamped America's market with below value goods • Infant American companies couldn’t compete and were suffering greatly. • Congress passed a protective tariff of 25% in order to limit the catastrophic effects of the British efforts. • Henry Clay knew the protective ta

8. Transportation • America lacked any real form of transportation to get an individual from East to West. Roads were merely deep ruts scarred into the ground. Water ways, although effective, were costly and had limited maneuverability. • Clay knew the difficulties of travel, and in the American System he sought to limit or even remove the hardships of the road. • His dream was to construct a vast expanse of roadways, canals, and railways that connected every major population center in the United States. • Not only would it ease the long treacherous journey west, it would also increase commerce amongst the different regions of the United States.

9. Difficulties of distances The sheer size of the United States did far more damage to the unity of the nation then the British ever did. Sectionalism was rampant in the newly constructed nation. Not only distance separated Americans but ideals and occupations as well. Clay knew Americans could come together under the common cause of economic success. And by connecting the regions together through vital trade routes, Clay believed the South and West could send raw materials and food to fuel the factories of the North and East, and in return the North And East could ship their finished products back to the rural regions.