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.
Miami and Erie Canal
The Miami and Erie never proved to be as profitable as the state government had hoped, as within several years of being completed to Lake Erie it had to compete with railroads. These offered greater speed and capacity for both passengers and goods. Factors limiting the canal's success included the lower population and level of economic development in Ohio, compared to that of New York when its canal was completed. Second, while New York had one canal that was located at the bottleneck of Great Lakes trade, Ohio had two canals, which spread usage too thinly. Third, was the expense of building and maintaining the canals. While the Erie Canal was 363 miles in length, with an elevation change of 700 feet, the combined length of Ohio's canals was 557 miles, with an elevation change of 2,096 feet. Compared to operations of the Erie Canal, the Ohio canal system had less trade and fewer passengers, while it had to operate over a longer length, and at a greater expense.