8 Ira Ryncr 



extension of the cotton area, necessitating increased transporta- 

 tion facilities, gave a special impulse to the railway movement. 



Furthermore, there was an unusual growth of banks during 

 this period. The opening up of new lands, construction of rail- 

 ways and canals, etc., necessitated an increase of banking facil- 

 ities. On the other hand, increased facilities for borrowing no 

 doubt gave an impulse to investment so that in reality there was 

 an interaction taking place between the lenders and the borrow- 

 ers. From 1829 to 1839 the number of banks increased from 

 329 to 840, more than doubling. Their capital during the same 

 period grew from no millions to 327 millions, almost trebling; 

 their loans from 137 to 492 millions, more than trebling.^ 



This was also an age of canal building. By means of the Erie 

 canal, constructed 1817-25 at a cost of $7,000,000, the cost of 

 transporting a barrel of tlour from Buffalo to New York was 

 reduced from $10 to thirty cents. Other states, realizing 

 the vast advantage of cheap transportation, imitated New York 

 and constructed canals also. As a result of these and other in- 

 ternal improvements, the population of the West began to grow 

 by both foreign and domestic immigration, principally by domes- 

 tic. From 1820 to 1840 Ohio's population increased from 581,- 

 295 to 1,519,467; Indiana's from 147,148 to 685,866; and Illi- 

 nois' from 55,162 to 476,183.- 



In one particular, investment in the United States took a dif- 

 ferent direction from that in England. In addition to construc- 

 tion of railways and canals, and the formation of banks, we were 

 rapidly extending our agricultural area. The West was being 

 settled up rapidly. This is evidenced by a glance at the statistics 

 of revenue arising from the sale of public lands. In 1833 this 

 revenue amounted to 4.9 millions; in 1834 to 6 millions; in 1835 

 to 15.9 milhons; and in 1836 to 25.1 millions.'' There was also a 

 considerable extension of the cotton area as indicated by the 

 statistics. They show that from 1833 to 1838 the crop of cotton 



^ Dewey, Financial History of the United States, 225. 

 '^Ibid., 224. 



2 Sumner, A History of Bankins^ in all the Leading Nations; vol. \,A 

 History of Bankhig in the United States, 2G. 



150 



