Chapter 9 Notes

America System: also known as Clays American system

• protective tariffs-protect the states money/ revenue to save; protecting new industries in the U.S
• helps new American industries get going then money goes to internal improvement (bridges, roads, transportation system better) and National Bank.

When the first bank was established, a charter was made but it expired and wasn't renewed and so it was shut down.

• 1816 - Congress charters the 2nd bank of the US
• provided national currency and centralized control of money and credit and reagulated state banks, (also issued bank notes)

1816-1st protective tarrif (tariff of 1816-shield form foreign competition)

Congress during early 1800s

• had no power to build roads, bridges, etc.
• states will have to build transportation
• Congress agrees to finish building the national road.

1816-1820

• Major internal improvement occurs in New York State
• Erie Canal- built/paid for by the state of New York.
• Several other states built toll roads

Transportation Revolution

• 1815-1516
• After 1815, there's a dramatic increase in road improvement.
• Steamboat - Can go up against the current (traffic goes both ways)
• After 1840 railroads east of the Mississippi and north are created.

Robert Fultman was credited for the steam boat

• Claremont - 1807
• provided two way transportation on rivers
• 60,000 to 500,000 tons 1810-1840
• New york - 1825 completes Erie Canal (connects Hudson River with Laki Erie)
• Market cities spring up along canal
• Other states copy and state building canals.

Railroads

• Begin in the East
• as they grow we get US approaching National transportation network in 1860
• railrads gradually take over canals
• transportation Revolution does not make greater results.
• 1840s-1850s- transportatoin lengths the west with north and east.

McCulloch v. Maryland

• Maryland decides to tax the bank - require bank of US to buy paper from governemt state of Maryland.
• National Bank refuses
• Maryland may not tax the National Bank according to Supreme Court Case
• Supremacy Clause- unconstitutional if Maryland taxes National Bank because if they raise the tax too high, the bank could fall.