The American System was an economic plan proposed in the early 19th century with 3 main parts: 1) Establishing a national bank to issue a uniform currency, 2) Building new roads across states funded by the government to facilitate trade and transportation, and 3) Placing tariffs on imported goods to generate revenue to fund infrastructure projects and protect domestic industries. The system aimed to make the US economically self-sufficient. However, it was opposed by some groups like cotton farmers in the South as tariffs increased prices of imported goods and retaliatory foreign tariffs made their exports less competitive.

1.
3 MAIN PARTS OF THE AMERICAN
SYSTEM
1. B­­ Bank
● one ​national​ bank that prints AND issues money (not a lot of
local banks issuing it across the country which is what existed
before the American System).
● Goal: Having 1 currency would help make business transactions
easier from 1 state to another.
2. R­­ Roads
● government will build numerous new roads to make travel
easier.
● This will promote business between states and encourage
travel; these things would tie the country together.
3. T­­ Tariffs (a tax on foreign (imported) goods.)
● The government would place taxes on imported goods.
● This will get more money for the government; it needs more
money to pay for roads (and other improvements).
● The tariff is meant to be “protective”­­ it will protect American
producers of similar goods by making them cheaper compared
to foreign goods.
***The American System was a plan to make the U.S. ​economically
self­sufficient​.***
Self­sufficient means…

2.
being able to provide for yourself (also means a nation being able to
provide for itself).
Problems with the American System
Not everybody in the U.S. supported the American System­­ support also depended on
the occupation or the region the person was from.
The​ tariffs​, in particular, were hated by some areas of the country.
Which of the following do you believe would have supported the American System and
why or why not:
1. ​Road Maker –
would support A.S.
more money making roads
2. Western Farmer –

3. Support . . . roads make shipping crops faster and
cheaper­­ will be able to sell more goods.
(Though cost of manufactured goods did increase in some
cases, ease of selling crops made up for this.)
3. Cotton Farmer/Seller –
HATED​ THE A.S.
they sold a lot of their crops to England; they also tended
to buy a lot of imported goods.
Tariffs negatively affected the cotton growers (and the
cotton economy in the South) more than any other group
in the U.S.
Why?
England (and other nations) retaliated by increasing tariffs
on U.S. goods (e.g., cotton)­­ this made southern cotton
less competitive with other nations’ cotton.
Also, the South produced very few manufactured goods­­
higher costs for these goods (whether U.S. or foreign
made) did not benefit their region at all.
More than any other group in America, they paid the cost
of higher prices due to tariffs with no benefit.