The Monkey System or Every One For Himself: Henry Clay says "Walk in and see the new improved grand original American System!" The cages are labeled: "Home, Consumption, Internal, Improv". This 1831 cartoon ridiculing Clay's American System depicts monkeys, labeled as being different parts of a nation's economy, stealing each other's resources (food) with commentators describing it as either great or a humbug.
A plan to strengthen and unify the nation, the American System was advanced by the Whig Party and a number of leading politicians including Henry Clay and John Quincy Adams. Clay was the first to refer to it as the "American System". Motivated by a growing American economy bolstered with major exports such as cotton, tobacco, native sod, and tar they sought to create a structure for expanding trade. This System included such policies as:
Support for a high tariff to protect American industries and generate revenue for the federal government
Maintenance of high public land prices to generate federal revenue
Preservation of the Bank of the United States to stabilize the currency and rein in risky state and local banks
Development of a system of internal improvements (such as roads and canals) which would knit the nation together and be financed by the tariff and land sales.
Clay protested that the West, which opposed the tariff, should support it since urban factory workers would be consumers of western foods. In Clay's view, the South (which also opposed high tariffs) should support them because of the ready market for cotton in northern mills. This last argument was the weak link. The South never strongly supported the American System and had access to plenty of markets for its cotton exports.
Portions of the American System were enacted by the United States Congress. The Second Bank of the United States was rechartered in 1816 for 20 years. High tariffs were first suggested by Alexander Hamilton in his 1791 Report on Manufactures but were not approved by Congress until the Tariff of 1816. Tariffs were subsequently raised until they peaked in 1828 after the so-called Tariff of Abominations. After the Nullification Crisis in 1833, tariffs remained the same rate until the Civil War. However, the national system of internal improvements was never adequately funded; the failure to do so was due in part to sectional jealousies and constitutional squabbles about such expenditures.
In 1830, President Jackson rejected a bill which would allow the federal government to purchase stock in the Maysville, Washington, Paris, and Lexington Turnpike Road Company, which had been organized to construct a road linking Lexington and the Ohio River, the entirety of which would be in the state of Kentucky. Jackson's Maysville Road veto was due to both his personal conflict with Clay and his ideological objections.
The establishment of a protective tariff, a 20%–25% tax on imported goods, would protect a nation's business from foreign competition. Congress passed a tariff in 1816 which made European goods more expensive and encouraged consumers to buy relatively cheap American-made goods.
The establishment of a national bank would promote a single currency, making trade easier, and issue what was called sovereign credit, i.e., credit issued by the national government, rather than borrowed from the private banking system. In 1816, Congress created the Second Bank of the United States.
The improvement of the country's infrastructure, especially transportation systems, made trade easier and faster for everyone. Poor roads made transportation slow and costly.
Among the most important internal improvements created under the American System was the Cumberland Road:
Henry Clay's "American System," devised in the burst of nationalism that followed the War of 1812, remains one of the most historically significant examples of a government-sponsored program to harmonize and balance the nation's agriculture, commerce, and industry. 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. Funds for these subsidies would be obtained from tariffs and sales of public lands. Clay argued that a vigorously maintained system of sectional economic interdependence would eliminate the chance of renewed subservience to the free-trade, laissez-faire "British System."
Michael, Diaz, The Promise of American Life (2005 reprint)
Joseph Dorfman. The Economic Mind in American Civilization, 1606–1865 (1947) 2 vol
Eckes, Jr. Alfred E. "Opening America's Market—U.S. Foreign Trade Policy Since (1995) University of North Carolina Press
Foner, Eric. Free Soil, Free Labor, Free Men: The Ideology of the Republican Party before the Civil War (1970)
Gill, William J. Trade Wars Against America: A History of United States Trade and Monetary Policy (1990)
Carter Goodrich, Government Promotion of American Canals and Railroads, 1800–1890 (Greenwood Press, 1960)
Goodrich, Carter. "American Development Policy: the Case of Internal Improvements," Journal of Economic History, 16 (1956), 449–60. in JSTOR
Goodrich, Carter. "National Planning of Internal Improvements," Political Science Quarterly, 63 (1948), 16–44. in JSTOR
John Lauritz Larson. Internal Improvement: National Public Works and the Promise of Popular Government in the Early United States (2001)
Lively, Robert A. "The American System, a Review Article," Business History Review, XXIX (March, 1955), 81–96. recommended starting point
Lind, Michael Hamilton's Republic: Readings in the American Democratic Nationalist Tradition (1997)
Lind, Michael What Lincoln Believed: The Values and Convictions of America's Greatest President (2004)
Remini, Robert V. Henry Clay: Statesman for the Union, 1991
Edward Stanwood, American Tariff Controversies in the 19th Century (1903; reprint 1974), 2 vols., favors protectionism
Charles M. Wiltse, John C. Calhoun: Nationalist, 1782–1828 (1944)
Other/older booksedit
G. B. Curtiss, Protection and Prosperity: an; W. H. Dawson, Protection in Germany (London, 1904)
Alexander Hamilton, Report on the Subject of Manufactures, communicated to the House of Representatives, 5 December 1791
H. C. Carey, Principles of Social Science (3 vols., Philadelphia, 1858–1859), Harmony of Interests Agricultural, Manufacturing and Commercial (Philadelphia, 1873)
Friedrich List, Outlines of American Political Economy (1980 reprint)
Friedrich List, National System of Political Economy (1994 reprint)
A. M. Low, Protection in the United States (London, 1904); H. 0. Meredith, Protection in France (London, 1904)
Ellis H. Roberts, Government Revenue, especially the American System, an argument for industrial freedom against the fallacies of free trade (Boston, 1884)
J. P. Young, Protection and Progress: a Study of the Economic Bases of the American Protective System (Chicago, 1900)
Clay, Henry. The Papers of Henry Clay, 1797–1852. Edited by James Hopkins
Sources and notesedit
^ abClassic Senate Speeches: Henry Clay In Defense of the American System at the U.S. Senate website
External linksedit
The American System: Speeches on the Tariff Question and Internal Improvements by Congressman Andrew Stewart
December 14, 2023
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The American System was an economic plan that played an important role in American policy during the first half of the 19th century rooted in the American School ideas of Alexander Hamilton 1 The Monkey System or Every One For Himself Henry Clay says Walk in and see the new improved grand original American System The cages are labeled Home Consumption Internal Improv This 1831 cartoon ridiculing Clay s American System depicts monkeys labeled as being different parts of a nation s economy stealing each other s resources food with commentators describing it as either great or a humbug A plan to strengthen and unify the nation the American System was advanced by the Whig Party and a number of leading politicians including Henry Clay and John Quincy Adams Clay was the first to refer to it as the American System Motivated by a growing American economy bolstered with major exports such as cotton tobacco native sod and tar they sought to create a structure for expanding trade This System included such policies as Support for a high tariff to protect American industries and generate revenue for the federal government Maintenance of high public land prices to generate federal revenue Preservation of the Bank of the United States to stabilize the currency and rein in risky state and local banks Development of a system of internal improvements such as roads and canals which would knit the nation together and be financed by the tariff and land sales Clay protested that the West which opposed the tariff should support it since urban factory workers would be consumers of western foods In Clay s view the South which also opposed high tariffs should support them because of the ready market for cotton in northern mills This last argument was the weak link The South never strongly supported the American System and had access to plenty of markets for its cotton exports Portions of the American System were enacted by the United States Congress The Second Bank of the United States was rechartered in 1816 for 20 years High tariffs were first suggested by Alexander Hamilton in his 1791 Report on Manufactures but were not approved by Congress until the Tariff of 1816 Tariffs were subsequently raised until they peaked in 1828 after the so called Tariff of Abominations After the Nullification Crisis in 1833 tariffs remained the same rate until the Civil War However the national system of internal improvements was never adequately funded the failure to do so was due in part to sectional jealousies and constitutional squabbles about such expenditures In 1830 President Jackson rejected a bill which would allow the federal government to purchase stock in the Maysville Washington Paris and Lexington Turnpike Road Company which had been organized to construct a road linking Lexington and the Ohio River the entirety of which would be in the state of Kentucky Jackson s Maysville Road veto was due to both his personal conflict with Clay and his ideological objections Contents 1 Main points 2 Annual message of 1815 Seven Points 3 See also 4 Further reading 4 1 Modern books 4 2 Other older books 5 Sources and notes 6 External linksMain points editThe establishment of a protective tariff a 20 25 tax on imported goods would protect a nation s business from foreign competition Congress passed a tariff in 1816 which made European goods more expensive and encouraged consumers to buy relatively cheap American made goods The establishment of a national bank would promote a single currency making trade easier and issue what was called sovereign credit i e credit issued by the national government rather than borrowed from the private banking system In 1816 Congress created the Second Bank of the United States The improvement of the country s infrastructure especially transportation systems made trade easier and faster for everyone Poor roads made transportation slow and costly The American System became the leading tenet of the Whig Party of Henry Clay and Daniel Webster It was opposed by the Democratic Party of Andrew Jackson Martin Van Buren James K Polk Franklin Pierce and James Buchanan prior to the Civil War often on the grounds that the points of it were unconstitutional Among the most important internal improvements created under the American System was the Cumberland Road Henry Clay s American System devised in the burst of nationalism that followed the War of 1812 remains one of the most historically significant examples of a government sponsored program to harmonize and balance the nation s agriculture commerce and industry 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 Funds for these subsidies would be obtained from tariffs and sales of public lands Clay argued that a vigorously maintained system of sectional economic interdependence would eliminate the chance of renewed subservience to the free trade laissez faire British System United States Senate website 1 Annual message of 1815 Seven Points editFunds for national defense Frigates for the Navy A standing army and federal control of the militia Federal aid for building roads and canals A protective tariff to encourage manufacturers Re establishing the National Bank Federal assumption of some state debtSee also editAmerican School economics Economic nationalism Protectionism Tariffs Tariffs in United States history Protectionism in the United States Friedrich List German American economist Import substitution industrialization a key feature of the American System adopted in much of the Third World during the twentieth century Lincoln s expansion of the federal government s economic role National Policy a similar economic plan used by Canada circa 1867 1920s Australian settlementFurther reading editModern books edit Michael Diaz The Promise of American Life 2005 reprint Joseph Dorfman The Economic Mind in American Civilization 1606 1865 1947 2 vol Eckes Jr Alfred E Opening America s Market U S Foreign Trade Policy Since 1995 University of North Carolina Press Foner Eric Free Soil Free Labor Free Men The Ideology of the Republican Party before the Civil War 1970 Gill William J Trade Wars Against America A History of United States Trade and Monetary Policy 1990 Carter Goodrich Government Promotion of American Canals and Railroads 1800 1890 Greenwood Press 1960 Goodrich Carter American Development Policy the Case of Internal Improvements Journal of Economic History 16 1956 449 60 in JSTOR Goodrich Carter National Planning of Internal Improvements Political Science Quarterly 63 1948 16 44 in JSTOR John Lauritz Larson Internal Improvement National Public Works and the Promise of Popular Government in the Early United States 2001 Lively Robert A The American System a Review Article Business History Review XXIX March 1955 81 96 recommended starting point Lind Michael Hamilton s Republic Readings in the American Democratic Nationalist Tradition 1997 Lind Michael What Lincoln Believed The Values and Convictions of America s Greatest President 2004 Remini Robert V Henry Clay Statesman for the Union 1991 Edward Stanwood American Tariff Controversies in the 19th Century 1903 reprint 1974 2 vols favors protectionism Charles M Wiltse John C Calhoun Nationalist 1782 1828 1944 Other older books edit G B Curtiss Protection and Prosperity an W H Dawson Protection in Germany London 1904 Alexander Hamilton Report on the Subject of Manufactures communicated to the House of Representatives 5 December 1791 H C Carey Principles of Social Science 3 vols Philadelphia 1858 1859 Harmony of Interests Agricultural Manufacturing and Commercial Philadelphia 1873 Friedrich List Outlines of American Political Economy 1980 reprint Friedrich List National System of Political Economy 1994 reprint A M Low Protection in the United States London 1904 H 0 Meredith Protection in France London 1904 Ellis H Roberts Government Revenue especially the American System an argument for industrial freedom against the fallacies of free trade Boston 1884 J P Young Protection and Progress a Study of the Economic Bases of the American Protective System Chicago 1900 Clay Henry The Papers of Henry Clay 1797 1852 Edited by James HopkinsSources and notes edit a b Classic Senate Speeches Henry Clay In Defense of the American System at the U S Senate websiteExternal links editThe American System Speeches on the Tariff Question and Internal Improvements by Congressman Andrew Stewart Retrieved from https en wikipedia org w index php title American System economic plan amp oldid 1172998874, wikipedia, wiki, book, books, library,
