Abstract
The purpose of this article is to examine a significant change that took place in American public policy during the nineteenth century. For many decades American governments, especially those of states and localities, had engaged in extensive programs for the promotion of economic development by the construction or support of works of internal improvement. It may now be pertinent, at a time when so many of the less industrialized countries are engaged in programs of economic development, to ask why and when and by what processes governments in the United States came to withdraw from direct participation in the promotion of canals and railways.

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