Background
The first canal built in the United States was constructed during 1792-1796. Built with private funds, it circumvented the South Hadley Falls on the Connecticut River in Massachusetts. Other small-scale private ventures followed this one.
However, that changed in 1817 when construction of the state-funded Erie Canal began. It was a huge undertaking at that time; it was planned to connect Buffalo (which is located on Lake Erie) with the state capital of Albany (which is located on...