Economic history of the United States
The 325-mile Erie Canal, which connected Albany, New York, on the Hudson River with Buffalo, New York, on Lake Erie, began operation in 1825. Wagon cost from Buffalo to New York City in 1817 was 19.2 cents per ton-mile. By Erie Canal c. 1857 to 1860 the cost was 0.81 cents. The Erie Canal was a great commercial success and had a large regional economic impact.
History of the Hudson River
One of the most significant canals of this era was the Erie Canal. For about a hundred years, various groups had sought to have a canal built between the Great Lakes and the Hudson River. This would link the frontier region of the United States to the Port of New York, a significant seaport during that time period as it is today. Construction of the canal began in 1817 and finished in 1825. Originally called "Clinton's Ditch", after NY Governor DeWitt Clinton, the canal proved to be a success, returning revenues of over $121 million after an initial construction cost of only $7 million. After the canal was built, freight could travel from many frontier cities, such as Pittsburgh, Chicago, and Cleveland, to Lake Erie, then to Buffalo and the entrance to the canal, through the canal to the Hudson River, and then south to New York City. The completion of the canal enhanced the development of the American West, allowing settlers to travel west, then send goods back to market in frontier cities, and then eventually export goods via the Hudson River and New York City. The completion of the canal made New York City one of the most vital ports in the nation, surpassing the Port of Philadelphia and ports in Massachusetts.