how did the advent of the railroads in the 19th century change the stock market
History of rail transport in the United States
In 1860 , the combined total of railroad stocks and bonds was $1.8 billion ; 1897 it reached $10.6 billion ( compared to a total national debt of $1.2 billion ) . Funding came from financiers throughout the Northeast , and from Europe , especially Britain . The federal government provided no cash to any other railroads . However it did provide unoccupied free land to some of the Western railroads , so they could sell it to farmers and have customers along the route . Some cash came from states , or from local governments that use money as a leverage to prevent being bypassed by the main line . Larger sound came from the southern states during the Reconstruction era , as they try to rebuild their destroyed rail system . Some states such as Maine and Texas also made land grants to local railroads ; the state total was 49 million acres . The emerging American financial system was based on railroad bonds . Boston was the first center , but New York by 1860 was the dominant financial market . The British invested heavily in railroads around the world , but nowhere more so than the United States ; The total came to about $3 billion by 1914 . In 1914 -- 1917 , they liquidated their American assets to pay for war supplies . 
In 1860 , the combined total of railroad stocks and bonds was $1.8 billion ; 1897 it reached $10.6 billion ( compared to a total national debt of $1.2 billion ) . Funding came from financiers throughout the Northeast , and from Europe , especially Britain . The federal government provided no cash to any other railroads . However it did provide unoccupied free land to some of the Western railroads , so they could sell it to farmers and have customers along the route . Some cash came from states , or from local governments that use money as a leverage to prevent being bypassed by the main line . Larger sound came from the southern states during the Reconstruction era , as they try to rebuild their destroyed rail system . Some states such as Maine and Texas also made land grants to local railroads ; the state total was 49 million acres . The emerging American financial system was based on railroad bonds . Boston was the first center , but New York by 1860 was the dominant financial market . The British invested heavily in railroads around the world , but nowhere more so than the United States ; The total came to about $3 billion by 1914 . In 1914 -- 1917 , they liquidated their American assets to pay for war supplies .
In 1860, the combined total of railroad stocks and bonds was $1.8 billion; 1897 it reached $10.6 billion.  Funding came from financiers throughout the Northeast, and from Europe, especially Britain. The emerging American financial system was based on railroad bonds.
In 1860 , the combined total of railroad stocks and bonds was $1.8 billion ; 1897 it reached $10.6 billion ( compared to a total national debt of $1.2 billion ) . Funding came from financiers throughout the Northeast , and from Europe , especially Britain . The emerging American financial system was based on railroad bonds .