The idea of the American System emerged from the start of George Washington's administration. Both Federalist and Republican administrations wanted to promote domestic manufactures through protective tariffs, advocated construction of roads and canals, and started and supported the 1BUS. They also tried to refine American culture by establishing cultural institutions, including a university. But the presence of a large amount of national debt and tumultuous international relations with European countries prevented political leaders' attempts to implement their ambitious programs.

George Washington and the Origin of the American System

From George Washington's first presidential term, an embryonic form of the American System existed in American political discourse. In his first annual message to Congress, Washington suggested ‘the expediency of giving effectual encouragement … to the exertions of skill and genius in producing them [inventions] at home, and of facilitating the intercourse between the distant parts of our country’. He also solicited Congressional patronage to promote ‘science and literature’ and advised legislators to consider ‘aids to seminaries of learning already established or creation of a national university’. Washington repeated and elaborated on his vision of a more refined nation by calling for the protection of domestic manufactures, construction of internal improvements and support of science and culture throughout his tenure as President.

In his Farewell Address to the American people, on 17 September 1796, Washington advocated the creation of a domestic market in which the north, south, east and west sections would exchange their products. He stated that the North ‘in an unrestrained intercourse with the South … finds in the productions of the latter great additional resources of maritime and commercial enterprise and precious materials of manufacturing industry’. The South, argued Washington, ‘sees its agriculture grow and its commerce expand’ through intercourse with the North. The East, in trading with the West, finds ‘a valuable vent for the commodities which it brings from abroad or manufactures at home’.