The issue of participating of the government in the economic life of the country was widely discussed in the 19th century. This tendency was characteristic of American politicians as well. In the 19th century, Henry Clay appeared to be a prominent statesman, whose activity was influential in the context of national politics for forty years. He introduced an American system, which “remains one of the most historically significant examples of a government-sponsored program to harmonize and balance the nation’s agriculture, commerce, and industry” (Classic Senate Speeches, n. d., para. 1). Therefore, the purpose of this paper is to describe the details of his offer.
In general, Henry Clays was considered one of the main supporters of unifying the American nation. Consequently, all the aspects included in his American system were aimed to pursue this intention. The stateman was inspired by the growth of the American economy, caused by tobacco, native sods, cotton, and tar exports (A Century of Lawmaking for a New Nation, n. d.). He was convinced that it was appropriate to expand the field of trade, and his theory implies three major lines of development.
First of all, Henry Clays promoted high tariffs in order to provide protection to the American industry and supply funding for the federal government. He claimed the necessity to adhere to high land prices for generating revenue at the federal level (A Century of Lawmaking for a New Nation, n. d.). The incentive of establishing a protective tariff was also promoted, and it involved a 20-25% tax on the products, which were imported (A Century of Lawmaking for a New Nation, n. d.; Classic Senate Speeches, n. d.). This measure was considered to protect the national business from competition with foreign countries.
Secondly, according to Henry Clays, the Bank of United States should be supported in stabilizing the currency, and local banks should be controlled by the government (A Century of Lawmaking for a New Nation, n. d.). The single currency was expected to contribute to better communication between states and unifying them (Classic Senate Speeches, n. d.). The stateman was willing to develop American trade, and communication appears to be an integral part of this process.
Thirdly, the politician advanced the suggestion on the establishment of internal improvements financed by the tariff and land sales. The necessity to improve the transport field was evident, as it is essential for successful trade (A Century of Lawmaking for a New Nation, n. d.; Classic Senate Speeches, n. d.). Therefore, Henry Clay encouraged mechanization as well. In addition, he believed that these measures would contribute to unifying the population.
As for the realization of this plan, the Western part of the country did not share the opinion of the stateman. Furthermore, Henry Clay protested its residents’ unwillingness to support urban workers due to the fact that they do not eat western foods. The South also was not eager to adhere to high tariffs. However, some parts of his system were implemented and benefited the development of the country. Furthermore, it presents the base for the American School of Alexander Hamilton. In general, the system was useful in the context of defining the lines of economic development of the country. It should be mentioned that although all the theory was not realized in practice to a full extent, it played a crucial role in American economic development in the 19th century.
References
Classic senate speeches. (n. d.). United States Senate. 2021, Web.
A century of lawmaking for a new nation: U.S. congressional documents and debates, 1774 – 1875. (n. d.). American Memory. Web.