American System

1. The American System
[thuh] [uh-mer-i-kuhn] [sis-tuhm]
Brought to you by: Ryan

2. Important Figures
Alexander Hamilton
Henry Clay
Friedrich List
John C. Calhoun
John Quincy Adams

3. What was it?
MERCANTILIST ECONOMIC PLAN
A NEW FORM OF FEDERALISM
Based on the "American School" ideas of
Alexander Hamilton
Contained Tariff of 1816 (Dallas Tariff)

4. Tariff of 1816 (Dallas Tariff)
Henry Clay and James Madison helped to pass
Increased price of British goods; allowed
Americans to compete with the British
Enforced between 1816 and 1824

5. Hamilton's American School
The Purposes were...
To protect industry through selective high tariffs
and some subsidies [Support Industry]
To make govt investments in infrastructure
creating targeted internal improvements
(especially in transportation) [Create physical
infrastructure]
To form a national bank with policies that
promote the growth of productive enterprises
[Create financial infrastructure]

6. What did it do?
High Tariff = $ for Fed. Govt
Maintenance of high public land prices = $ for
Fed. Govt
$ from Fed. Govt = Development of a system of
internal improvements (roads & canals)
Preservation of the Bank of the U.S. to form
and stabilize the currency, administer over state
and local banks, and to encourage productive
enterprise

7. What did it do? cont...
Program intended to allow the U.S. to grow and
prosper
Provides a defense against the dumping of
cheap foreign products, mainly the British
Empire.