Both Pennsylvania and Maryland borrowed heavily from European sources to fund canals connecting their ports to the Midwest .
Both could not make the interest payments early in the 1840s , due to the Panic of 1837 , and had to declare bankruptcy .
Both Pennsylvania and Maryland borrowed heavily from European sources to fund canals connecting their ports to the Midwest and both could not make the interest payments early in the 1840s , due to the Panic of 1837 , and had to declare bankruptcy .