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
Jesse Hawley had envisioned encouraging the growing of large quantities of grain on the western New York plains (then largely unsettled) for sale on the Eastern seaboard. However, he went bankrupt trying to ship grain to the coast. While in Canandaigua debtors' prison, Hawley began pressing for the construction of a canal along the -long Mohawk River valley with support from Joseph Ellicott (agent for the Holland Land Company in Batavia). Ellicott realized that a canal would add value to the land he was selling in the western part of the state. He later became the first canal commissioner.