The Erie Canal opened on October 26, 1825. The canal runs between the
Hudson River to Lake Erie. It is 363 miles long. After it was
opened, the cost of transporting goods between the midwest and the
eastern seaboard fell by 90%. For example, freight charges dropped
from $100 to $10 a ton for grain shipment. The canal opened up the
midwest to commerce, and also established New York as the main US
port. When first proposed, it was ridiculed, including by then
President Jefferson. But the New York legislature was convinced to
put up $7m byGoverner Clinton (yes, Clinton, DeWitt Clinton). It was
derided as "Clinton's Folly" and "Clinton's Ditch" but amazingly, was
constructed for $7m! It was 363 miles long when intitially
constructed. Newly invented "cement" was used to patch leaks.
There was so much grain that storing it between shipment became a
problem. And grain dust was explosive. "In 1843 Joseph Dart of
Buffalo solved the problem of handling the grain with the invention of
his steam-powered elevator. Dart's bucket elevator raised grain from
lake boats to built storage bins where it remained until being lowered
for transshipment." Buffalo became the world's largest grain port.
The transportation of grain is related to an interesting previous
story: prior to the building of the canal, grain grown in the midwest
was difficult/costly to transport to the major markets in the east.
So many farmers started distilling their grain into whiskey. In fact,
whiskey even became a medium of exchange. Alexander Hamilton, the
first Secretary of the Treasury, decided to tax whiskey. After the
revolutionary wars, the Federal Govt took ove rthe debt of the states,
and Hamilton was figuring out ways to pay down the debt. This led to
the whiskey rebellion (basically a repeat of taxation without
representation). Pittsburgh became the focal point of the rebellion.
The whiskey rebellion was put down. It was the first use of the
Militia Law of 1792
Anyway, the canal also led to an increase in the whiskey trade: "In
1825, roughly 562,000 bushels of wheat, plus 221,000 barrels of flour,
435,000 gallons of whiskey, and 32 million board feet of lumber helped
make up the 185,000 tons of eastbound canal cargo." Over 100 bars
were built along Canal Street in Buffalo for the boatsmen. According
to one description, "Canal Street was a rough place. Hidden under its
streets and back alleys were whiskey dens where young seamen, freshly
landed off the Lakes, were lured, fed drugged drinks, robbed of their
wads and sometimes murdered. Their bodies reputedly were slipped into
the canal with stones around their necks as though they had committed
suicide."
Incidentally, New York State collected over $121 million in tolls from
the Erie Canal by 1882. So pretty good for a $7m investment.
Hudson River to Lake Erie. It is 363 miles long. After it was
opened, the cost of transporting goods between the midwest and the
eastern seaboard fell by 90%. For example, freight charges dropped
from $100 to $10 a ton for grain shipment. The canal opened up the
midwest to commerce, and also established New York as the main US
port. When first proposed, it was ridiculed, including by then
President Jefferson. But the New York legislature was convinced to
put up $7m byGoverner Clinton (yes, Clinton, DeWitt Clinton). It was
derided as "Clinton's Folly" and "Clinton's Ditch" but amazingly, was
constructed for $7m! It was 363 miles long when intitially
constructed. Newly invented "cement" was used to patch leaks.
There was so much grain that storing it between shipment became a
problem. And grain dust was explosive. "In 1843 Joseph Dart of
Buffalo solved the problem of handling the grain with the invention of
his steam-powered elevator. Dart's bucket elevator raised grain from
lake boats to built storage bins where it remained until being lowered
for transshipment." Buffalo became the world's largest grain port.
The transportation of grain is related to an interesting previous
story: prior to the building of the canal, grain grown in the midwest
was difficult/costly to transport to the major markets in the east.
So many farmers started distilling their grain into whiskey. In fact,
whiskey even became a medium of exchange. Alexander Hamilton, the
first Secretary of the Treasury, decided to tax whiskey. After the
revolutionary wars, the Federal Govt took ove rthe debt of the states,
and Hamilton was figuring out ways to pay down the debt. This led to
the whiskey rebellion (basically a repeat of taxation without
representation). Pittsburgh became the focal point of the rebellion.
The whiskey rebellion was put down. It was the first use of the
Militia Law of 1792
Anyway, the canal also led to an increase in the whiskey trade: "In
1825, roughly 562,000 bushels of wheat, plus 221,000 barrels of flour,
435,000 gallons of whiskey, and 32 million board feet of lumber helped
make up the 185,000 tons of eastbound canal cargo." Over 100 bars
were built along Canal Street in Buffalo for the boatsmen. According
to one description, "Canal Street was a rough place. Hidden under its
streets and back alleys were whiskey dens where young seamen, freshly
landed off the Lakes, were lured, fed drugged drinks, robbed of their
wads and sometimes murdered. Their bodies reputedly were slipped into
the canal with stones around their necks as though they had committed
suicide."
Incidentally, New York State collected over $121 million in tolls from
the Erie Canal by 1882. So pretty good for a $7m investment.
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