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.
Packet boat
The American canal packet boats were typically narrow (about 14 feet) to accommodate canals, but might be 70–90 feet long. When the Erie Canal opened in New York state in 1825 along the Mohawk River, demand quickly rose for travelers to be accommodated. Canal packet boats included cabin space for up to 60 passengers. Unlike European and American sailing vessels, that sought to attain greater speed under sail, the canal packet boats were drawn through the Erie Canal by teams of two or three horses or mules. Compared to overland travel, the boats cut journey time in half and were much more comfortable. Travelers could get from New York City to Buffalo in ten days, with a combination of sailing and packet boats. Some passengers took the boats to see both the Erie Canal and the natural landscapes. Significantly, thousands of others used packet boats to emigrate to Ohio and other parts of the Midwest. These boats were also instrumental in the settling of and travel within Upstate New York through the branch canals such as the Chenango Canal.
Packet boats were also popular along the James River and Kanawha Canal in Virginia, allowing travel beyond the falls upriver.