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The national government kept passing tariffs to increase its funding, such as the Tariff of 1824.  Henry Clay adopted a term, the “American System,” to justify a protective tariff plus internal improvements nationwide as a way of expanding our domestic economy and decreasing our dependence on foreign sources.
 
The national government kept passing tariffs to increase its funding, such as the Tariff of 1824.  Henry Clay adopted a term, the “American System,” to justify a protective tariff plus internal improvements nationwide as a way of expanding our domestic economy and decreasing our dependence on foreign sources.
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Canals were being built and the steamboat (invented in 1807, big impact by the 1820s) developed so that goods could be transported quickly and cheaply over water.  The most important canal was the Erie Canal, finished in 1825, to connect the Hudson River and New York City with the Great Lakes.  It was spectacular economy success and enabled our nation’s economy to grow immensely.  Because of it New York City would become our financial center and biggest city.  The canal cost $7 million but was soon generating profits of $3 million per year.
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Canals were being built and the steamboat (invented in 1807, big impact by the 1820s) developed so that goods could be transported quickly and cheaply over water.  The most important canal was the Erie Canal, finished in 1825, to connect the Hudson River and New York City with the Great Lakes.  It was spectacular economic success and enabled our nation’s economy to grow immensely.  Because of it New York City would become our financial center and biggest city.  The canal cost $7 million but was soon generating profits of $3 million per year.
    
Another tariff was passed in 1828, partly supported by a political attempt to support Jackson.  The free traders in the South were outraged and called this the Tariff of Abominations.  The South Carolina legislature adopted 8 resolutions declaring the tariff to be unconstitutional, oppressive and unjust.  Georgia and Mississippi followed suit.  John Calhoun, as Jackson’s running mate, anonymously wrote the South Carolina Exposition and Protest.
 
Another tariff was passed in 1828, partly supported by a political attempt to support Jackson.  The free traders in the South were outraged and called this the Tariff of Abominations.  The South Carolina legislature adopted 8 resolutions declaring the tariff to be unconstitutional, oppressive and unjust.  Georgia and Mississippi followed suit.  John Calhoun, as Jackson’s running mate, anonymously wrote the South Carolina Exposition and Protest.
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