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 Commission
After much deliberation, the Commission turned their findings into a report that they submitted in March 1811. Rejecting Porter’s ideas of running the canal either to Lake Ontario, or through his lands to Lake Erie, the commissioners decided that the canal had to run straight to Lake Erie. Otherwise, the St. Lawrence River would still be a primary route of transportation and the West would not be connected to the East. They also rejected Morris’s proposition of a natural waterway created by the overflow of Lake Erie in favor of an entirely artificial waterway. The final and most important section of the report demanded public financing and control of the canal by the State of New York. Citing past failures such as Eddy’s company, and George Washington’s Patowmack Company, the Commission stated that such large endeavors were too expensive for private financing.