The canal that shaped American finance

塑造美国金融的运河

Behind the Money

2026-07-29

40 分钟
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The construction of the Erie Canal is one of the most ambitious infrastructure projects in American history. But its most influential legacy is not the waterway itself, it is how it was paid for. Hosts Gillian Tett and Robin Wigglesworth speak with financial historian Richard Sylla about how a gutsy New York City mayor won over politicians, citizens and investors to build something that not only transformed trade in a young nation, but also made New York City a financial centre and laid the blueprint for America’s municipal bond market.  Further reading: Wedding of the Waters: The Erie Canal and the Making of a Great Nation (2006), by Peter L. Bernstein  Credits: Getty Images. A performance of ‘Meeting of the Waters of the Hudson and Erie’ published by cplotter on YouTube  To enjoy future episodes, be sure to subscribe to The Story of Money wherever you get your podcasts, also on the show's dedicated YouTube channel here: https://www.youtube.com/@FTTheStoryOfMoney  Hosts: Gillian Tett and Robin Wigglesworth Producer: Lulu Smyth Senior Producer: Michela Tindera Executive Producer: Manuela Saragosa Original music and sound design: Breen Turner Broadcast engineers: Bianca Wakeman and Petros Gioumpasis Podcast Development: Laura Clarke FT Global Head of Audio: Flo Phillips  Video editors: Josh Divney and Kristen Kenyon at Podcast Discovery Learn more at www.ft.com/tsom or get in touch at thestoryofmoney@ft.com. Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.
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  • This is a massive, massive construction and engineering project, unlike anything we've ever seen.

  • It's like an Apollo program for the era.

  • The canal is, what, 350 miles long, which is an order of magnitude bigger than any canal ever built in America before.

  • And it can cut time travel from Albany to Buffalo from two weeks to just five days.

  • It's actually like a teleporter in Star Trek or something for the era.

  • Well, that's the important point, I think.

  • The cost of shipping, let's say, a ton of wheat from where it was produced

  • to the market in New York City was like one-tenth of what it had been previously.

  • It's a dramatic reduction.

  • And this is where the U.S.

  • Begins to grow rapidly because the transport costs fell so dramatically.

  • Today on the story of money, the 19th century construction project

  • that helped make New York the country's premier financial center.

  • We're talking about the 363 mile long Erie Canal,

  • which links the Atlantic Ocean to America's interior and how its construction almost never happened.

  • But it did.

  • And Gillian, I'm particularly excited about this story because, well, our hero is kind of this weird,

  • underappreciated corner of the bond market that really kind of only exists in America.

  • And I'm talking about the municipal bond market,

  • which are bonds sold by US states, local authorities, schools, even prisons.