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.
Erie Canal
The Erie Canal greatly lowered the cost of shipping between the Midwest and the Northeast, bringing much lower food costs to Eastern cities and allowing the East to economically ship machinery and manufactured goods to the Midwest. The canal also made an immense contribution to the wealth and importance of New York City, Buffalo and New York State. Its impact went much further, increasing trade throughout the nation by opening eastern and overseas markets to Midwestern farm products and by enabling migration to the West.