The American System In The 1800's

There was a generation of American politicians that did not possess the suspicion of consolidated authority that distinguished the revolutionary era. A number of men in this younger generation created a nationalist program for economic development resembling the one suggested by Alexander Hamilton during the Federalist era (Schultz, 2013). Improved t fit the requests of the 1810’s and 1820’s; they named this economic idea the American System.

The American System stemmed from an unexpected source: young Democratic-Republican politicians from the Middle Atlantic States, West, and the South who had apparently welcomed Jefferson’s idea of a small federal government, but in fact eagerly sought the promotion that a big federal government could distribute
When Congress, prior to the War of 1812, declined to recharter the First National Bank in 1811, the states sanctioned their own banks, offering a perplex variety of credit and currencies. Over four hundred banks were managed in 181, each offering its own type of currency and credit. Theories without the presence of any evidence were running wild, as investors tried to choose which currency would have value the fastest. Riches were won and lost rapidly, and investors had small idea which currencies would be the longest lasting. To conclude the chaos and strengthen the national government, advocate of the American System designed the Second Bank of the United States. In a preliminary version of a bill by Calhoun, the Second National Bank was created with support from western and southern congressman (Schultz, 2013). New Englanders, who had appropriate and safe banks in the North, went against the establishing of the bank. With Democratic-Republicans mostly supporting a national bank and previous New England Federalist going against it, times were different since the Federalist era; now all parties were urging what it had opposed just two decades before. The new bank was licensed in 1816. After the rechartered bank was established, it led to a major economic recession, which was known as the Panic of
Dartmouth College v. Woodward was a significant case that forbade state legislature from changing college charters in order to gain authority over them, due to corporation drafting the charter (Schultz, 2013). This increased the path of economic development. Another example was Gibbons v. Ogden case. Ogden argued that his business license from New York gave him rights to a monopoly on transporting commerce along New York coastline. The U.S. Supreme court disagreed, but argued that Gibbons, whose U.S. Congress chartered steamboat company could past there, proposing that the federal government power to control commerce, overruled that granted by the