Between 1820 and 1840, many American politicians advocated programs that stressed the supremacy of the central government over the states, called for direct federal involvement to aid the growth of commerce, and in general advocated an aggressive course of action designed to make America a nation without equal. Much of their program, embodied in Henry Clay's American System, resembled Hamiltonian federalism, but with a significant difference. These nationalists, unlike their Federalist counterparts, decided not to oppose the rising tide of democracy, but chose to present their programs in such a way as to appeal to the common man.
American System
The plan, advanced by Henry Clay, that was designed to foster commercial growth and economic stability. Its basic components consisted of a tariff to protect "infant industries" and to secure American jobs (thus making it appealing to labor), a national bank into which the money from the tariff (and other taxes) would be deposited, and an internal-improvements program paid for by the federal government. As conceived, money raised from taxes would pay for the roads, canals, and the like designed to improve transportation and thus stimulate more commerce, which would produce more jobs and revenue. To keep this growing economy stable would be the function of the bank, which would issue notes and make loans for business development and expansion. Therefore, all three elements were linked in a cycle of taxing, banking, and spending that made it difficult to oppose one without opposing them all.
commerce clause
The clause in the Constitution (Article I, Section 8) that gives the national government the power to regulate foreign commerce as well as commerce between the states (interstate commerce).
contract clause
The clause in the Constitution (Article I, Section 10) that prohibits the government (national or state) and individuals from impairing the obligation of contract.
diplomacy
The conducting of negotiations between nations and the drawing up of treaties. The act of concluding an alliance to national advantage.
internal improvements
The building of canals and roads, the improvement of harbors, and the clearing of rivers to improve transportation and stimulate commerce. To be done with the help of the national government, this was a major part of the postwar nationalistic program. The concept was opposed by those who felt it was too expensive or was an unconstitutional assumption of the rights and responsibilities of the states.
necessary-and-proper clause
The clause in the Constitution (Article I, Section 8) that authorizes Congress to make "all laws" necessary and proper to carry out its powers; also called the "elastic" or "implied powers" clause.
wildcat bank
Usually defined as a state bank in the West, organized with little capital resources, free with credit, and generally unsound. These banks were responsible for much of the land speculation in the West, and when the bank of the United States began to tighten credit restrictions, they were among the first to fail. This had much to do with the West's dislike for the Bank.
