In this article titled Rise and Fall of the Ohio and Erie Canal, it goes in depth about the economic and political considerations that helped influence the abandonment of the Erie Canal. These considerations could very well also be what led to the original rise of the Canal. The article goes on to state that "As early as the middle of the eighteenth century, George Washington and Thomas Jefferson discussed the desire for advancement into the Ohio wilderness and how it could play an important role in the extension of America". For example, flour sold in Cincinnati for $3.50, would sell in New York for $8. With the help of a canal, the flour could be shipped to New York for $1.70, thus making a profit of $2.80. But with the creation of canals, there will also be the demise of canals eventually.
Canals became very successful, but with the success also came the demand for a wider transportation network. With the canal also came a considerable amount of debt. On March 24, 1837, the Ohio legislature passed a Loan Law which authorized the state to loan 1/3 of the cost, or half the stock price, to a private turnpike, canal, or railroad company. This law then in return accelerated railroad projects throughout Ohio. Another big issue with the canals, is they were less favored by the sta...