Question 5

Quantify how large the returns to private investors in turnpikes and canals were . Given these relatively low returns, why did people invest

Canals and turnpikes provided only small returns in dividends to investors. However, people invested because not only did they have huge social returns, but the wealthy individuals who invested in them benefitted from the infrastructure change because they owned land along the right of way, and their property values went up.

Explain how the canals of the antebellum era were usually financed

Most funds to finance canals came from state and local governments (73%), although some came from wealthy individuals.

what was the gallatin plan

The Gallatin Plan was created in 1808 by Albert Gallatin, the Secretary of the Treasury. It was a plan to link the new country together with canals and roads, but was rejected.

Explain how the turnpikes of the antebellum era were usually financed

Turnpikes were financed by private investors with minor state and local government contributions (only 30%).