ch. 12 - Congress instituted the 1st protective tariff, the...

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Congress instituted the 1 st protective tariff, the Tariff of 1816 , primarily for protection. British companies were trying to make American factories die off by selling their British goods for much less than the American factories. The tariff placed a 20-25% tax on the value of dutiable imports. Over time, the tax price continued to rise, creating problems of no competition between companies. Due to nationalism, Henry Clay developed a plan for a profitable home market. It was called the American System . It had 3 main parts : A strong banking system, a protective tariff, and a network of roads and canals. Opposition included President Madison who vetoed the bill to give states aid for infrastructure , deeming it unconstitutional. The Jeffersonian Democratic- Republicans were strongly opposed to building federally funded roads because they felt that such outlets would further drain away population and create competing states beyond the mountains. James Monroe won the election of 1816. The time during the administrations of President Monroe was known as the " Era of Good Feelings " because the two political parties were getting along. The Panic of 1819 was the first financial panic since President Washington took office. The main cause was the over-speculation in western lands . The Bank of the United States became a financial devil to western farmers because it foreclosed many farms. Between 1791 and 1819, nine states from the West had joined the United States.
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This note was uploaded on 10/27/2009 for the course HISTORY HIST1120 taught by Professor Collins during the Fall '05 term at University of Tennessee.

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ch. 12 - Congress instituted the 1st protective tariff, the...

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