The Erie Canal transformed New York City into America’s banking capital

Travel the 363-mile Erie Canal, the waterway that cut freight costs by 90% and opened the American frontier.

The Erie Canal fueled a surge in westward settlement

By providing cheap, reliable transport to the interior, the canal made western lands more accessible. Farmers, traders, and immigrants moved into the Great Lakes region, accelerating population growth.

The Erie Canal was opened Oct. 25, 1825, with a group of boats from Buffalo to NYC

The unlikely engineering project connecting the Midwest to the Atlantic saw a ceremonious opening as Governor Dewitt Clinton rode with a flotilla of boats from Buffalo on Lake Erie to New York City.

The Erie Canal was built without a single dollar of federal funding

After President Madison and Congress rejected the project, New York State financed the 363-mile Erie Canal entirely on its own—authorizing $7M in bonds in 1817.

The Erie Canal runs 363 miles from Albany to Buffalo

Mostly using the low elevations of the Mohawk River Valley, the canal project connected the Great Lakes to the Atlantic seaboard for the first time. This site has a series of old and new maps of the canal.

DeWitt Clinton’s “Big Ditch” gamble transformed New York

Mocked as “Clinton’s Folly” and “Clinton’s Big Ditch,” New York Gov. DeWitt Clinton championed the Erie Canal against skeptics. His political drive secured funding for the project in 1817.

The Erie Canal reduced freight costs by 90%

Before the canal, shipping goods overland cost about $100 per ton. After its completion in 1825, rates fell to just $10—making western farm products competitive in eastern markets for the first time.

Infrastructure projects in New York are much more difficult today

The Erie Canal was one of the most ambitious infrastructure projects in American history. Many have said such an effort would be impossible today. This article explores why that is the case and ponders the future of large-scale American infrastructure development.

The Appalachian Mountains blocked east–west boat travel until the Erie Canal

The Appalachian Mountains, spanning from Alabama to Canada, long hindered inland commerce. The Erie Canal created the first reliable water route through the range by leveraging the natural valley of the Mohawk River, revolutionizing trade and migration.

The evolution of New York City

Originally founded as New Amsterdam, this interactive timeline lists out and provides deep dives on the major events that shaped New York City as it became America's foremost cultural and economic hub.

The canal carried germs as well as goods

In 1832, North America’s first cholera epidemic spread inland by way of the Erie Canal, carried by immigrants arriving on ships. Fearful towns barred passengers from disembarking, yet cholera, smallpox, and other diseases still traveled the waterway.

The canal became a highway for American reform movements

Beyond goods, the canal carried ideas. Its corridor hosted Second Great Awakening revivals and became a center for activism—fueling abolitionist networks, women’s suffrage organizing, and other reform movements.

See how New York City has grown since 1609

Wall Street and the southern tip of Manhattan were the first parts of the island to be developed beyond farmland by Dutch and English settlers. It wasn’t long until New York City resembled the city we know today.

The Panama Canal boosted the US as a world power in trade, engineering, and finance

The effort proved the US could achieve grand engineering projects while granting it influence over (and benefitting economically from) a major interoceanic channel and its host country, Panama.

In 1711, the New York City Common Council decided that the city’s slave market would operate on Wall Street

In 1711, the New York City Common Council decided that the city’s slave market would operate on Wall Street. Back then, the nation’s economy rode on the backs of slave labor and the slave trade itself—meaning that the slave market’s location was an economic hub for the city.

A bankrupt flour merchant in debtor's prison helped inspire the Erie Canal.

Wall Street has come a long way since the 1600s

Wall Street originated as part of a Dutch settlement and soon became the nation's financial hub. But Wall Street has since morphed into eight blocks of luxury gyms and apartments.

The history of Wall Street as a financial center dates back to the 1700s, beginning with the establishment of the New York Stock Exchange and New York City's first official slave market.

Reflections on the Erie Canal’s 200-year history

Reflections on the Erie Canal traces the waterway from its 1825 opening to its evolving role today. Each short video in this 10-part series explores a different aspect of the canal and its legacy today.

After the 9/11 terrorist attacks in New York City’s Financial District in 2001, many banks decided to relocate

Much has been said about why today’s top banks are typically no longer headquartered on Wall Street itself. The terrorist attacks in New York City’s Financial District on Sept. 11, 2001, are one reason many banks decided to relocate.

The transatlantic cable allowed for communications between North America and Europe

It had significant impacts on just about every industry, including finance. Specifically, the transatlantic cable made it so that real-time financial transactions could take place across the Atlantic, and allowed for much faster sharing of information that increased global market accuracy.

Mapping early New York

Want to see how Wall Street (and New York City as a whole) has changed over time? Use this timeline and map to see Manhattan today overlaid with the precise boundaries of early land grants to the Dutch in the 1600s. Scroll through the progress of city building through the first century of European settlement there.

Explore the technical side of the Erie Canal

Listen to this podcast from Northwestern University exploring the canal’s groundbreaking infrastructure—from locks and aqueducts to its role as America’s first large-scale engineered waterway.

New York was once called New Amsterdam

Although New York has a long history, it wasn’t actually called “New York” until the late 1600s, when the English beat out the Dutch for control of the area. In 1664, Dutch Governor Peter Stuyvesant surrendered what used to be known as “New Amsterdam” to the English, who renamed it New York after the Duke of York.

Hamilton founded what many regard as the first commercial bank in the United States

In 1784, Alexander Hamilton helped found the Bank of New York, which initially operated without a charter, financed early federal operations, provided what is considered the US government's first loan, and became the first stock traded on the New York Stock Exchange.

Niagara power helped electrify early New York City

Tesla's AC system at Niagara Falls was so successful that electricity generated there lit up Broadway theaters and powered NYC's subway system in the early 1900s.

When the New York Stock Exchange was started in 1792, traders would meet both outside on the street and in coffee shops to do business.

The New York Stock Exchange wouldn't have been made if not for municipal bond sales

The Funding Act of 1790 nationalized and consolidated the debt held by the 13 colonies to be sold off in the form of bonds.

The original canal had 83 different hand-operated locks

Locks are gated chambers that raise and lower boats between stretches of water at different levels. On the Erie Canal, 83 such locks managed a 565-foot elevation change from the Hudson River to Lake Erie.

Amateur engineers built America’s first great infrastructure project

With no engineering schools in the US, the Erie Canal was designed and built by self-taught amateurs who improvised new methods and became known as the “Erie School of Engineering.”

As technology evolved, so did Wall Street

Before the telephone was invented in the mid 1800s, people had to trade stocks in person. But once office telephones and computers became commonplace, banks and other financial institutions didn't necessarily need to have their headquarters near exchanges like Wall Street's New York Stock Exchange.

'Ben Franklin's World' podcast explores the building of the Erie Canal

Historian Janice Fontanella, site manager of the Schoharie Crossing State Historic Site, joined the podcast to recount the engineering challenges, local innovations, and broader impact of constructing the Erie Canal.

Local limestone made waterproof cement for the Erie Canal

In 1818, engineer Canvass White discovered that limestone near Chittenango, New York, could be processed into hydraulic (or waterproof) cement. This breakthrough replaced costly European imports, enabling watertight locks and aqueducts and revolutionizing American construction.

The century of the Panama Canal

The Panama Canal connects the Atlantic and Pacific Oceans through a 51-mile route that transformed global shipping when it opened in 1914. This breakdown covers how it was built, the workers behind its construction, and why its future may be challenged by climate and competition.

Before dynamite was invented, Erie Canal builders blasted rock with gunpowder

Constructed decades before the invention of dynamite, the Erie Canal’s toughest obstacles were blasted through using black powder charges.

The US finished what the French had started with Panama's canal

For about two decades, Suez Canal-builder and Frenchman Ferdinand de Lesseps led the project, but financial troubles forced it into the hands of the US, who completed it in 1914. This timeline, made to accompany the definitive PBS American Experience documentary about the canal, highlights major moments in its construction.

Thomas Jefferson dismissed the Erie Canal as 'little short of madness'

When first proposed, President Jefferson scoffed at the idea of carving a 363-mile waterway through wilderness and rock. With no precedent in American engineering, the canal seemed impossible.

New York City's carriage horses are a holdover from a time when the city was home to hundreds of thousands of horses roaming its streets.

The National Mall once had canals and rail lines

In the 1800s, the National Mall looked nothing like it does today. Canals, rail lines, markets, and industrial uses crisscrossed the Mall before later redesigns cleared it into a unified civic landscape.

Money—not land—became Europe’s key economic driver in the Middle Age

During the medieval commercial revolution, money gradually replaced land as the primary economic commodity. Expanding trade, markets, and finance transformed Europe’s economy—laying foundations, historians argue, that were essential for the later Industrial Revolution.

Why Amsterdam looks so unique

The Netherlands' capital consists of concentric canals lined with towering, unusually thin row homes, an altogether unique profile in Europe and the world. When it was growing, the city was a key trade hub, and merchants wanted direct access to waterways. Canals were built like roads, and houses were required to be very thin to allow for more homes to line the canals.

The US' coastal vacation destinations were developed with the aid of railroad companies, creating pivotal aspects of the vacation industry.

Explore how 10,000 different American cities got their name.

Niagara Falls helped decide the battle between AC and DC power

In the 1890s, Niagara Falls became the proving ground for alternating current (AC) when Tesla and Westinghouse built the first large-scale AC hydroelectric plant—defeating Edison’s push for direct current (DC) in the US electrical system.

In the late 1800s, New York City streets were covered with millions of pounds of horse manure thanks to a widespread horse-driven transportation industry.

The New Deal shifted economic and social authority to the federal government

Franklin D. Roosevelt's response to the Great Depression expanded federal power through economic regulation and social welfare programs, permanently reshaping federalism by shifting responsibility for financial security to Washington while leaving states to administer many of these programs.

How banking works

To do big things, people often need more money. Banks jumpstart economic activity with loans paid back with interest, and when things are working well, both people and the bank make more money. Formed in the Middle Ages amid competing currencies in Italy, banks—from the Italian for bench, banco—helped stimulate that era's commercial revolution, a massive expansion in Mediterranean trade and development. Find out the ins and outs of banks in this quick explainer video.

Niagara's flow is changed artificially to accommodate tourists and power generation

The natural wonder is also the site of great engineering feats, from the Welland Dam that first allowed ships to travel from the upper lakes to the St. Lawrence Seaway, to one of the first hydroelectric dams.

The origin and history of stock exchanges

When were stocks first sold? Though debt was first sold in Venice in the 14th century, stocks proper began in the Netherlands. To fund its spice trade across the world in 1602, the Dutch East India Company sold stocks to individual investors, a novel approach to raising funds. It was the Dutch West India Company that founded New York—the site of some of the world’s greatest stock exchanges. Listen to a concise historical overview here.

London bankers created the first clearinghouse to process checks in 1770

Until that time, each banker was required to bring that day's checks to every other bank for settlement. Perhaps understandably, the first place bankers opted to gather to clear and settle checks was a tavern known as the Five Bells. The innovation gave rise to what would become clearinghouses, key institutions that facilitate payments.