try's product, hence the boom of both industries. The growth of manufacturing was the main impetus to expansion , the industrial base broadened during this period, reflecting the overall improvement in factor endowments for manufacturing. Equally important was the cost decline in transportation, which opened up new sites for manufacturing development and reduced transport costs for existing firms (North, 208). Production increases required a retail market. In November of 1858, R.H. Macy established a department store in New York City successfully implementing a fixed price policy on a large scale developed by small New York stores since 1840 establishing a n American retail sales custom (Spann, 125). Some additional elements that should mentioned include the founding of the New York Tribune by Horace Greely, the development of the telegraph by Samuel Morse, the colaboration of six New York newspapers who joined to pay telegragh costs of foreign news relayed from Boston, and the establishment of a New York clearinghouse to facilitate banking operations. Research reveals that the reasons for the success of New York's business enterprise between 1825 and 1860 were enumerous with no reason weighting more heavily than another with the exception of as Ellis states that, "Plank roads, railroads, canals, steamships-all had revolutionary effects on the economy of New York. The predominately self-sufficent farmer of pioneer days was gradually tramnsformed into a specialized commercial farmer sensitive to every shift in the markets. The isolation of many rural communities was breaking down as citzensand goods flowed freely in and out. Merchants in both the upstae and metropolitan region, recognizing the crucial role of canals and railroads, looked with satisfaction upon the finest and most actively expanding transportation network in the country. New York grew steadily in population, wealth, and trade largely to the splendid system of water and ra...
