Gallatin clearly understood the vital role of transportation for increasing the wealth of nations. As he stated in his report:
It is sufficiently evident that, whenever the annual expense of transportation on a certain route, in its natural state, exceeds the interest on the capital employed in improving the communication, and the annual expense of transportation (exclusively of tolls), by the improved route, the difference is an annual additional income to the nation. Nor does in that case the general result vary, although the tolls may not have been fixed at a rate sufficient to pay to the undertakers the interest on the capital laid out. They, indeed, when that happens, lose; but the community is nevertheless benefited by the undertaking. The general gain is not confined to the difference between the expense of the transportation of those articles which had been formerly conveyed by that route, but many which were brought to market by other channels will then find a new and more advantageous direction; and those which on account of their distance or weight could not be transported in any manner whatever, will acquire a value, and become a clear addition to the national wealth.[1]
Gallatin then went on to show that in developed countries, such as France and England, there is sufficient concentration of wealth and population that private capital will flow into undertakings, such as canals and turnpikes, offering only remote and moderate profit. By contrast, in underdeveloped countries, such as the United States, commerce will not support expensive roads and canals, except near a few seaport cities. Even these facilities will not be fully productive until they become integrated into larger networks which only the general government can finance and carry through.
Gallatin, therefore, proposed that Congress launch a great national program of roads, canals and inland navigations to be completed in 10 years and which he estimated would cost about $20 million. To finance this program, he recommended annual appropriations of $2 million, amounting to less than one-seventh of the Government’s annual income and less than half of the fiscal surplus at that time. This modest investment would, he said, not only stimulate internal development, but would also enhance the value of the yet unsold Federal lands by far more than the cost of the program, while contributing to the national defense. Lastly and most importantly, “Good roads and canals will shorten distances, facilitate commercial and personal intercourse, and unite, by a still more intimate community of interests, the most remote quarters of the United States. No other single operation, within the power of the Government, can more effectually tend to strengthen and perpetuate that Union which secures external independence, domestic peace, and internal liberty.”[2]
The works proposed by Gallatin were, first, a series of great canals along the Atlantic coast connecting the natural bays and estuaries into one continuous waterway for the carriage of heavy freight. Supplementing this waterway, there would be a light-duty turnpike from Maine to Georgia for passengers, mail and light goods hauling. The second part of the plan was to form communications between the four great Atlantic rivers and the Western rivers by river improvements, short canals and four heavy-duty freight turnpikes across the mountains. These would be supplemented by internal roads to Detroit, St. Louis and New Orleans. The third part was to open inland navigation between the Hudson River and the Great Lakes and the St. Lawrence River, plus a canal around the Niagara rapids to open the Great Lakes to sloop navigation as far as the extremities of Lake Michigan.
The First National Plan For Financing Internal Improvements
Gallatin’s bold scheme was years ahead of its time and, further, it was proposed at a time when Congress was already divided by the Cumberland Road debate. It was shelved during the War of 1812. However, the plan had many friends in and out of Congress, chief of whom was John C. Calhoun, South Carolina.
This scene at the Fairview Inn, near Baltimore, is typical of the heavy travel on the Cumberland Road. Heavily loaded freight wagons, herds of stock, stagecoaches, and buggies depended on the inns along the way for food and rest after long weary hours on the road.
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