Railroad Development

The federal government gave land and made loans to the railroad companies. Why was the government so eager to promote the growth of railroads?

The government was eager to settle the western lands, and they knew that providing easy access to these lands was the best way encourage prospectors and businesses to move out to the new land. Having settlers in the west made the government feel secure about its land ownership, not to mention the fact that open space meant room for many, many new businesses. With each new railroad, another part of the country was able to connect with the rest of the US. This heavily promoted interstate trade, which of course benefited the government. Railroads easily gained government support, since the federal powers knew that they would prove to be highly lucrative in the long run, thanks to the new business and trade opportunities that they would open up.