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.
Ohio and Erie Canal
On December 11, 1816, Clinton, by then the Governor of New York, sent a letter to the Ohio Legislature indicating his state's willingness to construct the Erie Canal without national help, and asking the State of Ohio to join the endeavor. On January 9, 1817, the Ohio Legislature directed Ohio's Governor (and former Senator) Thomas Worthington to negotiate a deal with Clinton. Due to the cost, however, the Ohio Legislature dallied, and nothing happened for three years. Finally, in January 1822, the Ohio Legislature passed acts to fund the canal system (and the state's public education obligations).