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What are the three major points of the American System?

Question

What are the three major points of the American System?

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Solution

The American System was a plan to strengthen and unify the nation, developed by Henry Clay, a leading congressman. The system had three major points:

  1. Development of a strong banking system: This was to provide easy and abundant credit. A strong banking system was necessary to stabilize the currency and to control credit for the nation's developing industries.

  2. Implementation of a high tariff: This was to protect the American industries and generate revenue for the federal government. The tariff would protect American businesses from foreign competition and help them grow.

  3. Maintenance of a profitable home market: This was to be achieved by the federal government investing in transportation infrastructure such as roads and canals. This would make it easier for goods and people to move around the country, promoting trade and unifying the country's different regions.

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