USA HISTORY

Detailed explanation-1: -The war had convinced Democratic-Republicans that, for the nation’s security, they must protect American industry through tariffs–taxes on imported goods. The Republicans even chartered a new national bank to control the nation’s supply of money, something they had vigorously opposed only twenty years before.

Detailed explanation-2: -Jefferson and the Democratic-Republicans were strongly against the idea of a National Bank, arguing that the Constitution did not say anything about making a National Bank.

Detailed explanation-3: -Tariffs were also used for protectionist purposes, benefiting largely northern manufacturing businesses and effectively raising the costs to southern agricultural exporting industries.

Detailed explanation-4: -The Whig party led the way for the American System with support from Congressman Henry Clay from Kentucky, John Quincy Adams from Massachusetts and John Calhoun from South Carolina.

Detailed explanation-5: -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.