History
Long-distance electromagnetic telegraph systems from 1820 onwards used two or more wires to carry the signal and return currents. It was then discovered, probably by the German scientist Carl August Steinheil in 1836–1837, that the ground could be used as the return path to complete the circuit, making the return wire unnecessary. However, there were problems with this system, exemplified by the transcontinental telegraph line constructed in 1861 by the Western Union Company between Saint Joseph, Missouri, and Sacramento, California. During dry weather, the ground connection often developed a high resistance, requiring water to be poured on the ground rod to enable the telegraph to work or phones to ring.
Later, when telephony began to replace telegraphy, it was found that the currents in the earth induced by power systems, electrical railways, other telephone and telegraph circuits, and natural sources including lightning caused unacceptable interference to the audio signals, and the two-wire or 'metallic circuit' system was reintroduced around 1883.
Read more about this topic: Ground (electricity)
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