Growth of NYS Business

April 17, 1996

For a number of reasons, business enterprise in New
York grew by leaps and bounds between 1825 and 1860.

New York\'s growth between the years 1825 and 1860 can be attributed to a number
of factors. These include but cannot be limited to the construction of the Erie
Canal, the invention of the telegraph, the developed of the railroads, the
establishment of Wall Street and banking, the textile, shipping, agriculture and
newpaper industries, the development of steam power and the use of iron products.
On October 26, 1825 the Erie Canal was opened. The canal immediately became an
important commercial route connecting the East with the Ohio and Mississippi
Valleys. With tht time of travel cut to one-third and the cost of shipping
freight cut to one-tenthof the previous figures, commerce via the canal soon
made New York City the chief port of the Atlantic. The growing urban
population and the contruction of canals, railroads and factories stimulated the
demand for raw materials and food stuffs. In 1836 four-fifths of the tonnage
over the Erie Canal came from western New York (North, 105). Much of this
cargo was in the form of agriculture goods.

The farmer become a shrewed businessaman of sorts as he tended to produce
whatever products would leave him the greatest profit margin. The rise of the
dairy industry was by far the most significant development in the agricultural
history of the state between 1825 and 1860. Farmers discovered that cows were
their most relliable money-makers, since both the domestic and foreign market
kept demanding more dairy products (Ellis, 273). Price flucuations became
increasingly important for the farming population between 1825 and 1860. Prices
rose from the low level of the early 1820\'s until the middle 1830\'s and the
farmer\'s shared in the general prosperity (271). Although the rapid
industrialization and urbanization of New York had a great deal to do with the
success of agricultural markets sporadic demand from aboard as a result of the
Irish famine, the Crimean War and the repeal of the Corn Laws in England also
contributed(North, 141). During this period Ohio, Pennsylvania, New York and
Virginia, in that order were the leading wheat growing states. Between the
years 1840 and 1850 New York ranked first in the production of beef.

The absence of politic party differences on issues related to the the growth of
democracy existed in regard to the foremost economic questions, there was
absolutely no partisan division evident in the movement to incorporate new
financial institutions; rather , the primary factors , which the legislators
examined, concerned value, feasibility, profit and the location within the state.
Dozens of turnpike proposals, most of which werebacked by the Republicans,
passed the legislature; but the Federalists cooperated, seeing the chance for
profits. Prominent Federalists like John Rutherfurd, John Neilson, William
Paterson, John Bayard, and James Parker invested susstanial sums in the
turnpike business. There were numerous Republicans who were also vitally
interested in the turnpike business (Kass, 150). Bipartisan support also
accompanied plans for the construction of bridges and canals. All of the parties
contained a large number of adherents from from every level of economic well-
being in society. This helps to expain the absence of any clear-cut party
differences on the major economic issues of the such as the chartering of banks,
the protestive tariff, internal improvements, the development of manufacturing,
and the promotion of superior agricultural techniques. Each politcal faction
had segments both pro and con on most of these questions, and, inall cases it
was opprtunism, the desire for profits, which was decisive in determining one\'s
political position on these economic issues(175). New York\'s economic growth can
also be attributed to the invention of the cotton gin. Cotton had become a boom
crop in the south, however, plantation owners were either too engrossed in the
production of their crops or too unschooled in business techiniques to handle
its distribution. Some just did not want to be bothered. This opened thee door
for agents representing New York shipping firms who were only too happy to help
them out - for a fee. This scheme not only earned the New York merchants a
handsome profit but also solved the problem that without cotton the ship owner
would be hards preesed to find adequate cargoes for their return voyages. And
so it came about that New York in the nineteeth century became the nation\'s
foremost shipper of cotton(Allen, 108-109). The cotton shipments entering New
York harbor were brought to textile mills for processing. A group of New york
capitalist estashlished the Harmony Cotton Manufacturing