According to the American Congressman Henry Claw, foreign commerce alone cannot lift a nation out of huge foreign debts and lead to prosperity ( Abernathy and Corcoran, 1983) . Protection of American manufacturers against foreign competition would propel American industries to grow due to the constant and gradual growth of internal markets. In the period between 1825 and 1832, after the adoption of his American System proposal addressing the terrible economic situation and the distress of the American people, New York City alone experienced a massive improvement in real estate growth by over US$43 million to US$95 million, registering performances never seen before ( Baxter, 2004) .
In his report to the senate, Claw attributed these developments to the American System’s combination of properly developed foreign commerce principles and the domestic industry ( Baxter, 2004) . In his address, he made it clear that if jointly tackled, foreign trade and domestic trade would be "nourishing" each other in turns, to meet the objectives of the state in addressing the huge foreign debt that was left behind by years of wars and foreign trade restrictions.
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Objectives of the American System
Clay had a powerful vision for the economic position of America among the rest of the world. The system he proposed involved the protection and promotion of the American industry by introducing tariffs, establishing a national bank to aid in commerce, and a federal reserve that would look into internal infrastructure developments while developing profitable agricultural markets ( Abernathy and Corcoran, 1983) . For a long time, foreign legislation from Great Britain and France controlled the American government's internal affairs before the passing of the tariff in 1824.
What the American economy needed was a perfect integration of both manufacturing and agricultural sectors. Regulating the importation of cheap goods into the states would eventually benefit all the citizens and the administration. By developing the markets at home, the people would be protected from uncertain foreign-related events such as shortages of food, navigation and conflicts as was witnessed in the preceding years of Napoleon. The 1812 war disrupted businesses and left the American people devastated and the land desolate ( Baxter, 2004) .
Mechanization and Communication in the American System
The speedily implemented ideas from Clay’s economic system included constructing America’s first-ever major highway, the National Road, the passing of the protective tariffs by the congress, and giving a charter to a new national Second Bank of the United States. Thus, in 1825 and 1832, the American system's adoption revealed satisfactory results on a report he tabled to Congress. New York City alone had experienced a drastic improvement in real estate growth from $52 million to $95 million.
American system became so valuable in meeting the government's taxation objectives by selling public land to homeowners and channeling the proceeds into road and infrastructure development programs ( Baxter, 2004) . The amount of revenue received from the system was vast, navigation increased and improved, and the American people got content and satisfied. Today, few governments recognize the importance of public policy to domestic manufacturers and fail to put in the relevant measures to reduce their foreign debts while enhancing internal markets. When President George Washington signed the system's proclamation in July 1789, it became official that the state would encourage and protect its manufacturers from unnecessary foreign importations. If foreign nations react with prohibitions, restrictions and high duties, America will do the same.
References
Abernathy, W. J., & Corcoran, J. E. (1983). Relearning from the old masters: Lessons of the American system of manufacturing. Journal of Operations Management , 3 (4), 155-167. https://doi.org/10.1016/0272-6963(83)90001-3
Baxter, M. G. (2004). Henry Clay and the American system . University Press of Kentucky. https://core.ac.uk/download/pdf/232564186.pdf
