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The expansion of railroads in the mid-1800s played an important role in the development of the American Midwest . A. Increased rail line between the East and the Midwest resulted in the rapid rise of major Midwestern cities such as Chicago, as well as in the growth of small towns along railroad routes. B. Real estate speculation by railroads in the 1850s drove up the value of farmland and encouraged many Midwestern farmers to sell their land and make a new life in the cities. C. Both canals and railroads fell out of public favor in the early 1840s, but by the mid-1850s the economic benefits of railroads had once again become generally recognized. D. Once Chicago became a major commercial hub with direct rail connections to New Orleans and the East, Midwestern farmers were no longer limited to selling most of their products locally. E. State government financing of railroads largely ended in the 1830s and was replaced by a combination of local and federal government support and money from private investors. F. In the 1850s railroads turned to investment banks in New York City for capital to expand and by doing so, helped establish the city as the main financial center in the United States.