The
American System, advocated by
Henry Clay in Congress and supported by many nationalist supporters of the War of 1812 such as
John C. Calhoun, was a program for rapid economic modernization featuring protective tariffs,
internal improvements at federal expense, and a national bank. The purpose was to develop American industry and international commerce. Since iron, coal, and water power were mainly in the North, this tax plan was doomed to cause rancor in the South, where economies were agriculture-based. Southerners claimed it demonstrated favoritism toward the North.