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
Finally, after the United States made peace with Great Britain, officials could turn their attention towards the canal, which they did in a public meeting in New York City on December 3, 1815. The board sparked interest by emphasizing the benefits the city would receive from the canal. Despite minor setbacks, the meeting was a huge success. Even though President Madison vetoed a bill that provided funding for one quarter of the canal, the Commission convinced the State Legislature to go ahead with construction.