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During the late 18th century and throughout most of the 19th, Albany was a center of trade and transportation.The city lies toward the north end of the navigable Hudson River, was the original eastern terminus of the Erie Canal connecting to the Great Lakes, and was home to some of the earliest railroad systems in the world.During the 1920s a powerful political machine controlled by the Democratic Party arose in the state capital, connected to politics in New York City as well.It marshalled the power of immigrants and their descendants in both cities.In the early 21st century, Albany has experienced growth in the high-technology industry, with great strides in the nanotechnology sector.Albany has been a center of higher education for over a century, with much of the remainder of its economy dependent on state government and health care services.Albany's main exports at the time were beer, lumber, published works, and ironworks.

It became the capital of New York State in 1797, following the United States gaining independence in the American Revolutionary War.The fur trade attracted settlers who founded a village called Beverwijck near Fort Orange.In 1664 the English took over the Dutch settlements, renaming the city as Albany, in honor of the then Duke of Albany, the future James II of England and James VII of Scotland.Commencement of the fur trade provoked hostility from the French colony in Canada and among the natives, all of whom vied to control the trade.In 1618, a flood ruined the fort on Castle Island, but it was rebuilt in 1624 as Fort Orange.

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Tories and prisoners of war were often jailed in the Stadt Huys alongside common criminals.