When the Declaration of Independence was signed on July 4, 1776, George Washington and his army were in New York, guarding the city from the English. But before the close of the year he was forced to retreat, and the English took possession. By the close of the Revolution, in 1783, the English had robbed the city of much of its wealth and had ruined its business. [Illustration: THE FIRST TRAIN IN NEW YORK STATE] After the war the thirteen states who had won their freedom from England joined together, drew up a constitution for their common government, and chose their first president. Then came the thirtieth of April, 1789. The streets were crowded, and a great throng packed the space before New York's Federal Hall. This was Inauguration Day, and on the balcony stood General Washington taking the oath of office. It was a solemn moment. The ceremony over, a mighty shout arose--"Long live George Washington, president of the United States." Cheers filled the air, bells pealed, and cannons roared. The new government had begun, and, for a time, New York was the capital city. Already New York was recovering from the effects of the war. Her trade with European ports had begun again, and it was no uncommon sight to see over one hundred vessels loading or unloading in her harbor at one time. New York harbor is one of the largest and best in the world. Add to this the city's central location on the Atlantic seaboard, and it is no wonder that a vast coasting trade grew up with Eastern and Southern ports. Without doubt, however, the greatest business event in the history of New York City was the opening of the Erie Canal in 1825. The canal joined the Great Lakes with the Hudson River, making a water route from the rich Northwest to the Atlantic, with New York as the natural terminus. So with nearly all of the trade of the lake region at her command, New York soon became a great commercial center, outstripping both Boston and Philadelphia, which up to this time had ranked ahead of New York. A few years later the building of railroads began. The first railway from New York was begun in 1831, and it was not long before the city was the terminus of several lines and the chief railroad center of the Atlantic coast. As the railroads did more and more of the carrying, and the Erie Canal lost its former importance, New York did not suffer from the change, but still controlled much of the trade between the Northwest and European nations. Besides, as time went on, she built up an immense traffic with all parts of the continent, being easily reached by rail from the north, east, south, and west. [Illustration: THE BOROUGHS OF NEW YORK--ENTRANCES TO HER HARBOR]