New York State
Clinton was elected Governor later that year, just before construction of the Erie Canal started at Rome on July 4, 1817. Thereafter, construction and operation of the Erie Canal was authorized, funded, and managed by New York State.
Where did funding come from to pay for the Erie Canal?
Therefore, the New York State legislature took the matter into its own hands and approved state funding for the canal in 1816, with tolls to pay back the state treasury for upon completion. New York City Mayor DeWitt Clinton was a major proponent of a canal and supported efforts for its construction.
Which state funded the construction of the Erie Canal?
New York State Legislature
On April 15th, 1817, the New York State Legislature finally approved construction of the Erie Canal, which Jesse Hawley had written so compellingly about just a decade earlier. The bill authorized $7 million for construction of the 363-mile long waterway, which was to be 40 feet wide and four feet deep.
Did the federal government pay for the Erie Canal?
The construction was underwritten entirely by the state of New York, with no subsidy from the federal government. A system of locks, or water elevators, was built to help boats on the canal manage the steep, nearly 600-feet shift in elevation between Lake Erie and the Hudson River.
How was the Erie Canal project financed?
The original Erie Canal cost $7 million to build and this was carried out over the years 1818 to 1825. The legislative act allowing bonds to be sold to finance the canals' construction specified a maximum interest rate of 6 percent. This apparently was the interest rate which the bonds actually paid.
Why was building the Erie Canal dangerous?
The greatest challenge was elevation: Lake Erie, the canal's western terminus, is more than 570 feet above sea level. The Hudson River at Waterford, New York, the eastern terminus, is a mere 16.5 feet in elevation. Given rises and dips along the way, the engineers knew the canal couldn't be a continuous river.