I have been interested in the history of the Wabash and Erie Canal for a long time. I remember, when I was about 15, riding with my family on Highway 24, between Woodburn and New Haven and listening as my father pointed out the deep ditch beside the highway and explaining that it was all that remained of the old canal. He then would add that it was all dug by hand. One time my west coast brother, then a curious five-year-old, asked "Weren't they allowed to use shovels?" Yes, those mostly Irish workers were allowed to use shovels.
During one summer during my high school years I worked as a housekeeper and companion for an elderly lady. She still lived in the farm house that she and her husband had built when they were just married and starting their farm. She told me that many of their supplies - furniture, farm implements, seeds for crops, and food staples like flour and sugar, had all been delivered by canal boats. I think that would have been about 1890. By that time the any boats of the canals were owned by individuals, not the state.
Among the things my spouse and I discovered during our clean up after our recent water disaster was a small book (only 56 pages) titled "Indiana's Canal Heritage" published in 1954 and distributed by the Public Library of Fort Wayne and Allen County. Most of it is a reprint of a book originally published in 1926. Happily, this book was not damaged. The title was enough to make me read it.
I had no idea that canals became a very popular idea in the early 1800s and that millions of dollars were spent on digging canals across the northern part of the country (connecting variious rivers) at the same time that railroad lines were being established in the same areas. I won't go into all the financial details but the canals were a money loosing proposition from day one. Nevertheless, banks loaned huge amounts of money to states, Indiana included, to dig these canals. Some of these loans got repaid as people paid to travel and ship cargo on the canals but never all of them. You really need to read the book to appreciate all the 'creative financing' that went on.
Here's a map that was included in the book. You can see that the Wabash and Erie Canal extended from northwest Ohio, through Woodburn, where I grew up, to Fort Wayne and then diagonally across Indiana until it ended at Terre Haute where it emptied into the Wabash River. The map also shows railroads and paved "macadamized" roads.
For a while the canals played a big part in the westward expansion. It was an interesting time in the history of our country. You can learn more by contacting the Canal Society of Indiana, https://indcanal.org.


