Economy, Slavery and Jackson
In 1816, Congress adopted a provision for a second Bank of the United States (BUS) that was to be located in Philadelphia. In return, the bank had to handle the government’s funds without charge, lend the government up to $5 million upon demand, and pay the government a cash bonus of $1.5 million (Tindall & Shi, …show more content…
British manufacturers had quite an advantage over American manufacturers in regards to product efficiency, trading networks and of course the capability to offer lower prices. Consequently, the Tariff of 1816 came into place protecting the American interests by imposing tariffs on imports.
Eventually, the desire to grow and progress internally accelerated commercialization creating a “market revolution” (Tindall & Shi, 2013). Henry Clay promoted the “American System” with 3 important measures: 1) high tariffs for imports, 2) high prices for federal lands and 3) a strong national bank. Clay’s promotion of this system was based on the idea that America could succeed on having a sustainable economy (About.com, 2015). Unfortunately with the collapse of crop prices and the decline of land values America was again facing a financial