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American System Parts Bank Roads Tariffs
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.
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