State Policy and the Public Domain: The Ohio Canal Lands*

Harry N. Scheiber

The Journal of Economic History, 1965, vol. 25, issue 1, 86-113

Abstract: One of the principal sectional issues in nineteenth-century American politics related to Federal subsidies for major transportation facilities in the territories and newer western states. Not unreasonably, western political and business leaders contended that tax revenues in newly settled areas were insufficient to support the cost of large-scale public transport projects. Road and canal facilities were essential to regional economic development, declared a Cincinnati editor in 1824; yet “the Western states … are too poor, too exhausted, to engage in those public works.” The states recently admitted to the Union, he asserted, required “the fostering aid of the nation.” But appeals for such aid ran into a bedeviling series of political and financial obstacles. First, military expenditures during the War of 1812 and the legacy of war debt drained the Federal Treasury of surplus funds. Then, Jeffersonian “strict constructionists,” notably Presidents Madison and Monroe, questioned on constitutional grounds the propriety of an active Federal role in transport development. Underlying the tortured constitutional debates was a basic sectional conflict, which posed the eastern and southern states (some of which had been supplicants themselves for Federal aid a few years earlier) against the claims of the West. Of all the major western demands for Federal patronage, the National Road was virtually the only project approved before 1824.

Date: 1965
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