Internal Improvements

Today, the National Highway System is comprised of 160,000 miles of roadways. This includes the Eisenhower Interstate System stretching from Canada to Mexico and coast to coast. Chances are, you've traveled over these highways a few times (probably more). In the early 1800s, however, the nation did not have a system of roads or highways. This, as you would expect, made traveling, trade, and communication difficult.

Henry Clay recognized that transportation was crucial to economic development. The third part of his American System involved using government funds to build roads and canals. The War of 1812 highlighted the difficulties of moving men and supplies over the nation's woeful transportation system. Clay argued that economic expansion depended upon a transportation network that linked the various regions of the country. The movement of settlers to the West increased pressure to improve roads and waterways.

In 1817, Congress approved a Bonus Bill distributing $1.5 million to the states for internal improvements. However, President Madison believed it was unconstitutional to use of federal funds for local projects. Though Madison supported internal improvements and called for a constitutional amendment to allow for such federal funding, he vetoed the Bonus Bill in the last days of his administration.

Despite this setback, the states went forward with internal improvement projects. Across the nation, work began on new roads and canals, financed by private capital and backed with state dollars. Pennsylvania extended a turnpike connecting Philadelphia to Pittsburgh. New York in 1817 began construction on the Erie Canal, which would provide an all-water route to from the Great Lakes to New York City. As the longest canal in the world, it was the source of national pride. One commentator said the Erie brought a "river of gold" to New York City. Travel time between New York City and Buffalo dropped from thirty days to six, and the cost of moving a ton of freight plummeted from $100 to $5. Across the nation, states and investors flocked to build and profit from canals.

Why do you think a state in the 1810s would agree to finance a road or canal project?

The people who used the road or canal would pay tolls and fees, providing revenue for the state. The increased commerce would stimulate economic development along the route, further increasing state revenues. These are the same reasons states continue to develop road (and airport and rail) projects today.

The internal improvements piece of Clay's American System was well underway.