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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 and having a 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.  Spectacular economic success and enabled our nation's economy to grow immensely.  The Erie Canal enabled New York City to become the financial center and biggest city in the United States.  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 by Robert Fulton, and the first one constructed in American was the Clermont), which had a major effect on economy by 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.  Spectacular economic success and enabled our nation's economy to grow immensely.  The Erie Canal enabled New York City to become the financial center and biggest city in the United States.  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.  Discussed in greater detail below, the supporters of free trade in the South were outraged and called this the Tariff of Abominations.  John Quincy Adams left Andrew Jackson a big problem for him to deal with.
 
Another tariff was passed in 1828, partly supported by a political attempt to support Jackson.  Discussed in greater detail below, the supporters of free trade in the South were outraged and called this the Tariff of Abominations.  John Quincy Adams left Andrew Jackson a big problem for him to deal with.
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