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
As the canal brought travelers to New York City, it took business away from other ports such as Philadelphia and Baltimore. Those cities and their states started projects to compete with the Erie Canal. In Pennsylvania, the Main Line of Public Works was a combined canal and railroad running west from Philadelphia to Pittsburgh on the Ohio River, opened in 1834. In Maryland, the Baltimore and Ohio Railroad ran west to Wheeling, West Virginia, also on the Ohio River, and was completed in 1853.