AP US History in 1 Minute Daily: The American System (Day 88/309)

Welcome to today’s explanation of the American System in my series- APUSH in 1 Minute Daily!

Image of an unissued Small Treasury Note associated with the War of 1812, Wikimedia Commons

In 1819, the U.S experienced its first major financial crisis since the ratification of the Constitution. State banks were closed, unemployment and bankruptcies increased, and the impact was most severely felt in the West.

Henry Clay, 1818, Wikimedia Commons

With lingering effects of the Panic of 1819, as well as being spurred by attitudes of nationalism, Kentucky Representative Henry Clay proposed the American System as a comprehensive method for advancing the nation’s economic growth.

American System, Created by apushladyboss

The American System included 1) protective tariffs to promote American manufacturing and raise revenue, 2) federally funded internal improvements, and 3) a national bank as the charter of the first national bank had expired.

The Monkey System or "Every one for himself at the expense of his neighbor," Wikimedia Commons

Clay’s ideas were adopted during the 1810s and 1820s. Several tariffs were implemented, construction began on a National Road and canals, and the Second Bank of the United States was chartered. It wasn’t, however, fully supported by all Americans.

The American System was a plan to make the U.S. more economically self-sufficient. While it included many ideas supported by former Federalists, it was adopted during the administrations of  Democratic Republicans.

Join me tomorrow as I explain the Transportation Revolution in the next APUSH in 1 Minute Daily!