If you are citizen of an European Union member nation, you may not use this service unless you are at least 16 years old.
You already know Dokkio is an AI-powered assistant to organize & manage your digital files & messages. Very soon, Dokkio will support Outlook as well as One Drive. Check it out today!

Henry Clay and the American System

Page history last edited by Mr. Hengsterman 5 years, 2 months ago

Henry Clay and the American System

A program of vigorous economic nationalism dependent on active government becomes Henry Clay's greatest contribution to national policy. Clay argued strongly for the development of a home market for domestic goods so Americans would not be dependent on foreign imports

Remember the WAR HAWKS? New members of Congress elected in 1811–led by Henry Clay (Kentucky) and John C. Calhoun (South Carolina) had begun to agitate for war, based on their indignation over British violations of maritime rights as well as Britain’s encouragement of Native American hostility against American expansion in the West.

Re-charter National Bank

GOAL: Provide national bank to extend credit for land purchases and check state banks.

In 1811 – the original charter for the Bank of the United States ended and wasn’t renewed by James Madison and the Republican Congress

The number of state banks then increased, but in most states there was little banking control credit was easily given many people couldn’t pay back loans the financial situation wasn’t good (Sound familiar???)

The Democratic-Republicans used the same formulas as Hamilton's first Bank of the United States: 4/5 of the money came from private investment and 1/5 of the money came from the federal government. National bank was able to get the states back in line, but we still faced financial panic in 1819.

Protective Tariffs

GOAL: Promote American manufacturing and raise revenue for transportation infrastructure projects

Tariff revenues would fund roads and canals and eastern trade would flourish under tariff protection.

John C. Calhoun proposes the Bonus Bill (1817). Its primary goal is to set aside money (1.5 million to states) made on stock sales from the Bank of the United States for internal improvements.

President Madison vetoed the bill because he believed in strict interpretation of the Constitution, and using federal money for internal improvements is not a power granted to the federal government in the Constitution.