The American System. The American system was a national economic plan put forth by Senator Henry Clay of Kentucky and the Whig party throughout the first half of the 19thcentury. The plan consisted of three major components: Pass high tariffs (taxes) on imports to protect American businesses and to increase revenues.Click to see full answer. Similarly one may ask, what is the American system and why is it significant?The purpose of the American System was to make the most of the opportunities provided by the acquisition of the new lands in the west and ensure that US money benefited US Citizens. In 1816 Congress created another Bank of the United States and passed the Tariff of 1816, which placed a 20-25% tax on all foreign goods.One may also ask, what was the main goal of the American system? The American System was comprised of three elements: establishing protective tariffs, creating a national bank, and investing in internal growth that would create new roads, waterways, and other means of transportation. People also ask, what was the American system in the 1800s? In the early 1800s, prominent Kentucky statesman Henry Clay proposed the American System— a plan designed to strengthen the economy of the United States. Clay argued that high tariffs would encourage Americans to buy domestic goods rather than foreign goods and promote the growth of American industries.What was the American system quizlet?The American System allowed the United States to become more connected with internal improvements. Canals were created to transport goods from the different regions.