
The American System was Henry Clay’s three-part economic plan for the United States in the early 19th century. American System APUSH questions will center on the purpose and components of the plan. What is the American System?
What did Henry Clay mean by the American system?
Henry Clay : The American System. the policy of promoting industry in the U.S. by adoption of a high protective tariff and of developing internal improvements by the federal government (as advocated by Henry Clay from 1816 to 1828)
What did Henry Clay do in the war of 1812?
Henry Clay. Distinguished senator from Kentucky, who ran for president five times until his death in 1852. He was a strong supporter of the American System, a war hawk for the War of 1812, Speaker of the House of Representatives, and known as "The Great Compromiser." (responsible for the Missouri Compromise).
What did Andrew Clay do in the Jacksonian era?
By 1832, Clay had helped to form the party of the National Republicans who were committed to the ideas of the American System: a protective tariff, government funding for internal improvements, and a national bank. But Jackson won in 1832.
What political compromises did Henry Clay create that held the Union together?
The political compromises Henry Clay created held the union together through crises concerning slavery, tariffs, nullification, secession, western expansion, and national political power.

What was Henry's Clay's American System?
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.
What was the American system and what goals did Henry Clay have?
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.
What was the impact of Clay's American System?
The American System included financial support for roads, canals, bridges. These improvements to the nation's infrastructure would facilitate trade and increase accessibility to markets. Revenue – Money would be raised by selling public land and imposing tariffs.
Why was Henry Clay's American System Successful?
High tariffs would stifle foreign competition for goods; internal improvements like roads, canals, and bridges would help goods get to markets and interconnect the American economy; and a national bank would help regulate overall commerce and access to credit.
What was Henry Clay's American System quizlet?
Henry Clay's American system established a protective tariff, rechartering the national bank, and sponsored the development of transportation systems in America. This system is better for the north because the protective tariffs protected US industry from British competition but help the south very little.
What was the intention of the American System?
Henry Clay called this program of tariffs, physical infrastructure, and national banking "The American System." Its goal was to transform the United States from a group of sectionally divided agricultural states tightly linked to the British manufacturing colossus into a unified, dynamic industrial economy.
Who benefited from the American System?
The Northeast benefited greatly from the American System because industry was beginning to grow in the region and good transportation routes were needed to move products and supplies around.
Why did Henry Clay's American System fail?
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 scruples about such expenditures. Despite his uneven success in gaining passage of all aspects of the American System, Henry Clay was proud of the plan.
Why was Henry Clay's American System controversial?
Controversy Arises In the late 1820s, tensions over the role the federal government should play in economic development escalated to the point that South Carolina threatened to withdraw from the Union over a tariff in what became known as the Nullification Crisis.
What is the main reason why Southerners might have supported Henry Clay's American System quizlet?
What is the main reason why southerners might have supported Henry Clay's American System? The American System promised to help their industries obtain raw materials.
What are the four major points of the American System?
His “American System,” spelled out while Speaker of the House in 1824, included four main components: tariffs to protect and promote American industry; a national bank to control the money supply and foster commerce; federal subsidies for roads, canals, and other “internal improvements” to move products, services, and ...
What was the American System quizlet?
The American System allowed the United States to become more connected with internal improvements. Canals were created to transport goods from the different regions.
What was the goal of the American System quizlet?
What was the goal of Henry Clay's American System? Was it successful? The goal of Clay's American System was to better the United States economy and make them more independent. It consisted of three parts, a tariff to promote and protect American Industry, a national bank and the promotion of internal improvements.
Who was Clay in 1824?
Clay, who had served as a representative and senator from Kentucky, ran for president in 1824 and 1832, advocating extending the American System. But by that time sectional and partisan disputes made aspects of his plans controversial.
What did Clay advocate for?
When he advocated for his American System, Clay focused on the need to build growing home markets for American goods. He contended that blocking cheap imported goods would ultimately benefit all Americans.
What was the point of the Nullification Crisis?
In the late 1820s, tensions over the role the federal government should play in economic development escalated to the point that South Carolina threatened to withdraw from the Union over a tariff in what became known as the Nullification Crisis . Clay's American System was perhaps ahead of its time.
What did Clay envision?
Clay envisioned a diversified American economy in which agricultural interests and manufacturers would exist side by side. Essentially, he saw beyond the argument of whether the United States would be an industrial or agricultural nation. It could be both, he insisted.
What was Clay's idea?
Clay's idea was that the federal government should implement protective tariffs and internal improvements and a national bank should help develop the nation's economy. Clay's basic argument for the program was that by protecting American manufacturers from foreign competition, ever-increasing internal markets would spur American industries to grow.
Who was the Great Triumvirate of the Senate?
Clay ran for president in 1844 and remained a potent force in American politics until his death in 1852. He, along with Daniel Webster and John C. Calhoun, became known as the Great Triumvirate of the U.S. Senate. Cite this Article. Format.
Why did the development of home markets help the United States?
His program had strong nationalist appeal. Developing home markets would protect the United States from uncertain foreign events. Self-reliance could ensure that the nation was protected from shortages of goods caused by distant conflicts. That argument resonated strongly, especially in the period following the War of 1812 and Europe's Napoleonic Wars. During those years of conflict, American businesses suffered from disruptions.
Why did Clay want to reinstate the National Bank?
He believed a national bank would stabilize currency, promote trade, and limit the influence of riskier local banks. Infrastructure: Clay wanted to improve and expand upon the nation’s transportation network, ...
What are some historical people related to the American System?
Henry Clay: Kentucky statesman who proposed the American System; at various points, Clay served as a Senator, Speaker of the House, and Secretary of State
What is the American System?
In the early 1800s, prominent Kentucky statesman Henry Clay proposed the American System— a plan designed to strengthen the economy of the United States.
Why did Southern cotton planters oppose the high tariffs of the American System?
Southern cotton planters opposed the high tariffs of the American System. They claimed that the tariff unfairly favored the interests of northern manufacturers. Clay’s counterargument was that the South should support the North’s growth because the North provided a market for their cotton.
How did the American system shape the economy?
The American System shaped national economic policy in the first half of the 19th century. It helped the young nation to grow in strength . Domestically, the American System was met with mixed reactions from the public. While many lauded it for bolstering growth, some were unhappy with its tenants.
Who was Alexander Hamilton?
Alexander Hamilton: former Secretary of the Treasury; Clay drew inspiration from many of Hamilton’s economic ideas, especially the national bank, when crafting the American System.
Who was Henry Clay?
Henry Clay : The American System. Distinguished senator from Kentucky, who ran for president five times until his death in 1852. He was a strong supporter of the American System, a war hawk for the War of 1812, Speaker of the House of Representatives, and known as "The Great Compromiser.". (responsible for the Missouri Compromise).
What was the idea behind the protective tariffs?
Protective Tariffs. The notion behind high protective tariffs in the United States was a noble crusade. After the War of 1812, relations between Britain and the United States remained unstable (so much so that a war over the Oregon boundary became a possibility in the 1840s). National Bank.
What was the purpose of the Second Bank of the United States?
Power was given to the Bank to establish regional financial offices and generate a national currency. The federal government approved the transfer of federal money into the Bank, and allowed the Bank to make payments for federal transactions.
What was Henry Clay's role in the Civil War?
Serving as a congressman, Speaker of the House, a senator, Secretary of State, and a frequent presidential candidate , Clay dramatically influenced the political and economic climate in the United States in the years leading up to the Civil War. Clay authored the American System–a plan for the federal government to take an active role in guiding the national economy towards self-sufficiency and prosperity. He was “The Great Compromiser,” crafting numerous political arrangements that calmed the growing sectional divisions between the North and the South. In presidential politics, Clay created not one, but two political parties. Through his numerous attempts to attain the highest office in the land, he was at the center of the era’s most important issues: the Corrupt Bargain, the National Bank, and western expansion.
What was Henry Clay's role in the Compromise of 1850?
While the Compromise of 1850 may not have perfectly resolved the growing sectional divide in the country, Henry Clay was a powerful force in supporting a united national government and seeking out common ground between different regional interests.
What was the compromise of 1850?
But perhaps Clay’s most impressive efforts at compromise came in 1850. Following the Mexican-American War, the U.S. had expanded to the Pacific Ocean leaving the northern and southern states to argue over the extension of slavery into this new territory. California’s application for statehood also threatened to upset the balance of slave states and free states in the nation. Additionally, the southern states felt threatened by the growing number of runaway slaves that the North refused to return. Endless quarreling seized control of the Senate until Henry Clay, ill with tuberculosis but committed to resolving these difficult problems, proposed what would become the Compromise of 1850 . California would be admitted as a free state. The New Mexico and Utah territories would be allowed to choose for themselves whether or not to allow slavery. Texas’ borders would be redrawn. The slave trade, though not slavery, would be outlawed in Washington, D.C., and a strong Fugitive Slaw Law would return the South’s property to them. While the Compromise of 1850 may not have perfectly resolved the growing sectional divide in the country, Henry Clay was a powerful force in supporting a united national government and seeking out common ground between different regional interests.
What party did Henry Clay join?
Shortly after this electoral defeat, Henry Clay began organizing Jackson’s opposition into a unified political party, the Whigs. Just as the pre-Revolutionary War American and British parties of the same name opposed the arbitrary power of the British monarchs, the Whigs despised the haphazard actions of “King Andrew I.” The Whigs first achieved presidential electoral success in 1840 with William Henry Harrison; in 1844, Henry Clay was the Whig party nominee for president. In this contest against the Democratic nominee James K. Polk, the main debate concerned expansion and Manifest Destiny . Polk blustered through the campaign with slogans such as “54°40’ or Fight” and “The Reannexation of Texas.” Clay favored a more measured approach. Knowing that annexing Texas would lead to war with Mexico, Clay instead supported negotiations, diplomacy, and patience. While Clay’s approach may have been more reasonable and restrained, the country was in no mood for such careful policies and Clay, once again, lost his bid for the presidency.
What did Clay propose to the Union?
In 1820, Clay proposed Missouri’s entrance into the Union as a slave state to be accompanied by Maine’s entrance as a free state–maintaining the political balance between these competing state interests.
What did Henry Clay believe?
Henry Clay was born in Virginia and later moved to Kentucky. He was a lawyer, a tobacco planter, and a slave owner. A fellow westerner and political rival Andrew Jackson shared much in common with Clay. Both men had southern roots, owned plantations and slaves, and championed the cause of the “common man.” However, while Jackson enthusiastically supported states’ rights in the form of state-run banks and lower tariffs, Clay passionately disagreed. Clay firmly held that the federal government should play a central role in directing the economy. The federal government could fund state projects while building an increasingly necessary transportation infrastructure as well as encourage the growing American manufacturing industry. Clay may have begun his political career as a Democratic-Republican, but he soon championed the cause of many former Federalist ideas.
Who was the greatest compromiser?
As “The Great Compromiser,” Henry Clay crafted the most important political compromises in U.S. history.

What Is The American System?
Why Is The American System So Important?
- The American System shaped national economic policy in the first half of the 19th century. It helped the young nation to grow in strength. Domestically, the American System was met with mixed reactions from the public. While many lauded it for bolstering growth, some were unhappy with its tenants. For example, the tariff was unpopular in the West and South, who felt that the ta…
What Are Some Historical People Related to The American System?
- Henry Clay:Kentucky statesman who proposed the American System; at various points, Clay served as a Senator, Speaker of the House, and Secretary of State
- Alexander Hamilton:former Secretary of the Treasury; Clay drew inspiration from many of Hamilton’s economic ideas, especially the national bank, when crafting the American System
What Example Question About The American System Might Come Up on The Apush Exam?
- “The Monkey System, or ‘Everyone for himself at the expense of his neighbor!'” by E.W. Clay, 1831. (Source) The group most likely to oppose Henry Clay’s American System was A) northeastern merchants. B) southern cotton planters. C) western manufacturers. D) Republicans nationwide.