

Funds for these subsidies would be obtained from tariffs and sales of public lands.

This "System" consisted of three mutually reinforcing parts: a tariff to protect and promote American industry a national bank to foster commerce and federal subsidies for roads, canals, and other "internal improvements" to develop profitable markets for agriculture.

Henry Clay's "American System," devised in the burst of nationalism that followed the War of 1812, remains one of the most historically significant examples of a government-sponsored program to harmonize and balance the nation's agriculture, commerce, and industry. From the nation's earliest days, Congress has struggled with the fundamental issue of the national government's proper role in fostering economic development.
