‘National Economy’

What do you think this term means? What have you read or heard about the national economy today? Is it good…or bad? Explain.

CHAPTER 12

SEC.3 REFORMING THE NATIONAL ECONOMY

(1800-1850)

Sec. 3 Strengthening the American System

What will we learn?

What was the Era of Good Feelings? Who were the 3 Political Giants &

which side did each represent? How did Congress try to strengthen

& reform the national economy? What was Henry Clay’s American

System?

An Era of Good Feelings

Feeling confident, new lands, improvements in transportation, new industries = growth & expansion!!!

1816 – James Monroe (R) defeats Rufus King (F) Monroe: “A new sense of national unity”

1820 – Monroe wins 2nd term No one ran against him… Federalist party dies out

Three Political Giants

Setting the stage: 3 young politicians rose to the top in

the early 1800’s. All played KEY roles over the next 30+

years! John C. Calhoun

South Daniel Webster

North Henry Clay

West

A New National Bank

1816 – Wait, we have a problem… NO National Bank!

The first Bank of the US ended in 1811. Why didn’t they make a new one? Before, Jefferson & Madison didn’t want a

bank… Now they need one! So…the second Bank of the

United States is born. establishes one currency

Competition From Abroad

Post-War of 1812… The North begins to build…but

A flood of British goods in the south What is dumping? Still an issue today!

Congress acts Many (NE) northern businesses fail…people are

furious! Tariff of 1816 is passed – raised tariffs on imports Imagine that a protective tariff is now in effect,

today, in the US. What nations would be affected? How would it affect us?Effect

of a Protective Tariff

Competition From Abroad

Southerners protest No factories

here…we buy British goods…this is bull crap!

People down south are now furious!

Bitter dispute begins – North vs. South

Uniting America

More people began moving westward

The north and south were growing apart creating sectionalism – promoting your section of the country rather than the whole country.

To combat this, Senator Henry Clay (KY) proposed a plan to build nationalism and boost the economy.

It was known as The American System.

Henry Clay’s American System “I will make everyone happy with my plan.” – H.

Clay

1. Keep High Tariffs on Imports “We need to keep high tariffs on imports in order to make

sure our southern states trade with our northern factories.

2. Build National Roads “We can boost the national economy by using the money

from the tariffs to improve our transportation system.”

3. Keep Single Currency “We must use the same money in all states so we can

trade amongst ourselves. This way northern states can trade with southern states.”

But…it never went into effect! South didn’t like the plan…why?

Improving Travel

Why did many southerners oppose spending money for internal improvements?

Handout Activity: Class Vote

Daniel Webster (North) John C. Calhoun (South) Henry Clay (West)

Each student will read the arguments for or against the Tariff of 1816 and Clay’s American System.

The class, acting as Congress, will then vote on the measures.

What have we learned?

The “Era of Good Feelings” was…?The 3 Political Giants, representing which region of the country, were…?

Congress tried to strengthen the national economy by…?

Henry Clay’s American System called for…?