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.
Indiana Central Canal
The Indiana Central Canal was a canal intended to connect the Wabash and Erie Canal to the Ohio River. It was funded by the Mammoth Internal Improvement Act, Indiana's attempt to take part in the canal-building craze, started by the Erie Canal. $3.5 million was allocated for the project, the largest piece of the entire $10 million Act. However, due to the Panic of 1837, Indiana suffered financial difficulties and had to turn over the canal to the state's creditors, and building of the canal was stopped in 1839. The canal was supposed to extend , from Peru, Indiana, to Evansville, Indiana, where it would reach the Ohio River. It was originally divided into two sections, North and South. Later, a third section was designated, called the Indianapolis section. Only eight miles were completed, with eighty additional miles between Anderson, Indiana, and Martinsville, Indiana, having been partially built.