Title: Henry Clay's American System Economic Plan
Headings: Henry Clay's American System of Economics
Henry Clay's American System of Economics
The powerful politician advocated policies to develop home markets
Agriculture and Manufacturing
Nationalist Appeal
Controversy Arises

Content: That argument resonated strongly, especially in the period following the War of 1812 and Europe's Napoleonic Wars. During those years of conflict, American businesses suffered from disruptions. The ideas put into practice included building the National Road, America's first major highway; chartering the Second Bank of the United States, a new national bank, in 1816; and passing the first protective tariff the same year. Clay's American System was essentially in practice during the Era of Good Feelings, which corresponded with the presidency of James Monroe from 1817 to 1825. Controversy Arises
Clay, who had served as a representative and senator from Kentucky, ran for president in 1824 and 1832, advocating extending the American System. But by that time sectional and partisan disputes made aspects of his plans controversial. Clay's arguments for high tariffs persisted for decades in various forms but often met with stiff opposition. In the late 1820s, tensions over the role the federal government should play in economic development escalated to the point that South Carolina threatened to withdraw from the Union over a tariff in what became known as the Nullification Crisis .