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.
Alfred Kelley
In 1816, the state of New York asked the state of Ohio's aid in building the Erie Canal. The request was referred to the Ohio House committee on public works, which was chaired by Kelley. He wrote a report endorsing the project, but the Ohio General Assembly did not act on New York's request. Kelley and others came to believe that a canal linking the Ohio River with Lake Erie would greatly benefit Ohio. They frequently communicated with New York Governor DeWitt Clinton and those building the Erie Canal, and circulated glowing reports about construction progress and the ease with which financing was obtained. They also worked to build a coalition strong enough to overcome parochial opposition to an Ohio canal.