Michigan would borrow five million dollars to build 3 railroads and 2 canals across the state. After the Panic of 1837 and failure of the state’s bonding agent, the state was broke and its credit was ruined. Two railroads were sold to private investors and the other projects were abandoned. One of the canals proposed by Governor Stephens D. Mason would eventually be built as the Soo Locks.
Source : Michigan Every Day