Outline of the development of the internal commerce of the United States: 1789-1900Van Metre, Thurman William
History
Outline of the development of the internal commerce of the United States: 1789-1900
Van Metre, Thurman William
United States -- Commerce -- History
While the country was being agitated by the tariff controversy and
exceptionally bitter political contests, the New York canals were
opened for traffic throughout their entire length (October, 1825). No
other single work in the United States has ever had a more beneficial
effect on the prosperity of internal trade. The opening of the canals
brought to an end what had been the bane of internal commerce for half
a century--the excessive cost of freight transportation. Freight rates
between Albany and Buffalo were at once reduced 90 per cent and the day
of the freighter on the Genesee road was ended. The new canal wrought a
complete change in all the rural districts of western New York. Lumber,
staves, ashes, grain and vegetables, hitherto unmarketable, were now
shipped to the markets of the East; farm values doubted and quadrupled;
a stream of people poured into the fertile farming regions around Lake
Erie. Not less valuable was the new waterway to the district at its
eastern terminus. The laboring population of the growing manufacturing
towns reaped immense benefits from the cheaper and better means of
subsistence they could now secure, while the shipments of merchandise
westward on the canal exceeded in value the receipts of raw produce at
tide-water. New York had achieved economic unity at a single stroke.
The success of the Erie Canal and the rapid growth of internal trade
which followed the adoption of the "American System" caused a demand
everywhere for more roads and canals and a widespread agitation in
favor of government aid to internal improvements. The federal
government gave extensive aid to private and state enterprises in the
way of land grants and stock subscriptions, though it did not engage
directly in the construction of commercial highways. The individual
states embarked in schemes of canal and turnpike building which
involved them in debts of millions of dollars. Ohio and Indiana began
to construct canals joining the Ohio River to Lake Erie in order to
secure the advantage of the new outlet to the East. Pennsylvania,
awakened to the danger of the total loss of western trade through the
state by the fact that shipments of merchandise to the West were
abandoning the wagon roads from Philadelphia, Baltimore, and New York
in favor of the cheaper route by way of the Erie Canal, began, in 1826,
an extensive system of canals to connect the Delaware River with the
Ohio River and the Great Lakes. Not to be outdone by their rival
states, Maryland and Virginia agreed upon the construction of a canal
from Chesapeake Bay to the Ohio River, and on July 4, 1828, President
Adams dug the first spadeful of earth to signalize the beginning of the
undertaking. Some financiers of Baltimore, dubious of the success of an
effort to build a waterway over the difficult route adopted by the
promoters of the Chesapeake and Ohio Canal, withdrew their support from
that enterprise, and putting their confidence in a new and almost
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