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.
Technological and industrial history of the United States
Numerous canal companies had also been chartered; but of all the canals projected, only three had been completed when the War of 1812 began: the Dismal Swamp Canal in Virginia, the Santee Canal in South Carolina, and the Middlesex Canal in Massachusetts. It remained for New York to usher in a new era in internal communication by authorizing in 1817 the construction of the Erie Canal. This bold bid for Western trade alarmed the merchants of Philadelphia, particularly as the completion of the national road threatened to divert much of their traffic to Baltimore. In 1825, the legislature of Pennsylvania grappled with the problem by projecting a series of canals which were to connect its great seaport with Pittsburgh on the west and with Lake Erie and the upper Susquehanna on the north. The Blackstone Canal, (1823–1828) in Rhode Island and Massachusetts, and the Morris Canal across northern New Jersey (1824–1924) soon followed, along with the Illinois and Michigan Canal from Chicago to the Illinois River(1824–1848).