We took this ground, twenty years ago, to endeavor thereby "to do the State some service," as in part stated in the November number of the Merchants' Magazine, (page 547.) We will further enlarge on this subject, to correct, if possible, at another time, the views entertained in 1840 by the canal advocates in this State and in Pennsylvania, who proclaimed as their creed, "that canals are always growing better, while railways are growing worse," a doctrine that, unfortunately for the rising generation of taxpayers, the State of New York has acted on, at one period and now, to the serious detriment of her credit, with the certain prospect of increased taxation to sustain her credit and pay her State indebtedness.

The present canal system, and the political management of our canals by conventions held in Rochester and Utica, and by Clinton Leagues in New York, to make political capital, under the absurd plea of "saving them," and their "more speedy enlargement," and in propounding questions to members nominated to the Legislature in all parts of the State, has become an evil that requires correction.

Experiencia docit is a good motto of the Latins. Experience, however, does not teach the statesmen of New York. They shut their eyes to the history of canals in the States around them. We have been infatuated with our success with the Erie Canal, a work unique in its character, uniting, with the Oswego Canal, as they do, inland seas, and the vast and fertile coasts on their borders, with the city of New York.

To recount, as briefly as possible, the fate of canals in the several States, is by no means a pleasant task. It may, however, be a useful lesson to our next Legislature to ponder on, and may be useful in illustration of our text-like causes produce like effects"-while experience should teach us that all the wisdom of the State is not concentrated in a selfconstituted league of forwarders and seedy politicians, who would use the canal mania, with which the State of New York has been inoculated, to still ride this political hobby; and, let us add, to such an extent, that it it is high time the people should pause, and take soundings for a new departure. We say this, in view of the reckless, the heedless expenditures on the log-rolling latteral canals, under the plea of repairs, "to be made on the plan of the enlarged canal," when the whole of these latteral canals have been superseded by railways, with the exception of the Oswego Canal, and this important work would not be an exception, if the Oswego and Syracuse Railroad was finished; that is to say, connected with the mills and harbor of Lake Ontario, or, what would be better, (our favorite hobby,) a direct railway from Oswego to Troy, to intersect at that point the Hudson River Railroad and the Hoosic Tunnel route to Boston, and thus connect the West with the wharves of New York, and with Boston, on a line, and the only one, that can contend successfully with the Great Western and the Grand Trunk railways of Canada, leading through manufacturing New England to Boston and Portland, as well as Quebec, destined, in looking to the future, to relieve the Erie and Oswego canals of all plethora of business.

But to refer to the history of canals, and their fate, in sagacious New England. The Essex Canal, in Massachusetts, has been superseded by the Boston and Lowell Railroad; the Blackstone Canal by the Providence and Worcester Railroad by its side. The tow-paths of these canals are serving for railways, while the water in them is being diverted and used to supply mills and spinning-jennies. The Farmington Canal-to repeat

an old story-to open which, and for the important occasion, Governor Clinton and the magistrates of New York were invited to attend, and a great deal said of its importance and of its future success, has gone into oblivion. A railway is constructed on and near its tow-path, and is vivifying the manufactures and agriculture of Connecticut by producing celerity and certainty.

The six New England States, while they have abandoned the construction of canals as an obsolete idea, have completed, up to 1st January, 1858, (see the Merchants' Magazine for March, 1858, page 385,) 3,884 miles of railways, at a cost of $146,805,163; and as a whole system and investment, (although there are many competing and premature lines running north and south,) they have paid about 6 per cent per annum since their commencement. The State of Massachusetts, in her sagacious enterprise, has the honor of having completed the first railway in the United States-the Quincy, on which to transport her granite to market. Then Maryland followed with her Baltimore and Ohio Railroad, to pass the Alleghany ridge, 2,700 feet high, and with very exceptionable grades; yet over 2,000,000 barrels of flour were transported in 1857-8 over this road to Baltimore, principally from the valley of the Ohio, formerly controlled by the New York canals. Of this 2,000,000 barrels of flour, more than one-third was shipped coastwise to Philadelphia, New York, and the New England States. The value in grain transported over this road in 1858 was $5,300,000; provisions, $6,000,000; live stock, $4,174,000; dry goods, $30,000,000. The hog receipts in Baltimore in 1858 was 183,161." "Of 43,031 beef cattle slaughtered in Baltimore, 14,400 came over the Baltimore and Ohio Railroad, and 47,881 sheep."

The engineering wisdom of the State of New York next came into the field, and projected and built the Albany and Schenectady Railroad, with two inclined planes, that have since been superseded, and laid a track down State-street, on the call of the citizens of Albany, which of course had to be abandoned, also the dark, pick-pocket dépôt of 30 feet by 100, in which the great trade and travel to and from the West was to be concentrated.

In New Jersey, the Morris Canal, 101 miles long, to Easton, Pennsylvania, constructed at a cost of $4,300,000, has sunk its capital to reach the coal mines, and we believe only lives in the memory of the stock dealers of Wall-street. It has never earned a dividend, and is now superseded by railways parallel to it, contending for the same trade. Such is also the case with the Delaware and Raritan Canal, 43 miles long, 7 feet deep by 70 feet wide, costing $3,000,000. This canal has two or three locks, starting from Trenton, on the Delaware, and terminating at New Brunswick. It commenced with steam and horse power, and is now operated mainly by mule-power. Comparatively, with its capacity, it does a very limited business. At its commencement, it did not earn one per cent net on its cost. Family and political influence, it is said, was brought to bear in the New Jersey Legislature on the proprietors of the Camden and Amboy Railroad, costing about the same sum as the Delaware and Raritan Canal, and this latter bad investment was forced on the railroad, with special privileges granted to make it a monopoly for transportation through New Jersey. The railway was to have the privilege (a doubtful constitutional one) to charge, we believe, about one dollar per head for each foreign passenger passing through the State for the benefit of the

treasury of New Jersey! The railway has regularly, for a number of years, earned from 15 to 16 per cent, and divides the same with the canal in 8 per cent dividends on both canal and railway.

The history of the canals, and other State improvements of Pennsylvania connected with them, in the log-rolling principle on which the canals were constructed, presents a costly and painful exhibition of the mania caught by that State from the State of New York, after our first success with the Erie Canal. Pennsylvania, after having been forced to suspension in paying the interest on her State indebtedness, (exceeding $35,000,000-we believe near $40,000,000,) and finding, after a fair trial, (as we shall find in New York,) that the State, confessedly, "was incompetent to manage her public works with economy;" that the canals were fair game for each political party to plunder as they came into power, came to the sound conclusion that it was best to sell her public works, particularly the main stem from Philadelphia to Pittsburg, if she could get $7,000,000, at which they were limited. They were in the market two years, before the Central Railway of Pennsylvania was induced by the State to purchase them. The result has been, as the late Governor tells us, that the canal is better managed by private enterprise than it was before under appointments made for political services, liable to constant change by a popular vote, perhaps just at the moment the incumbent had just learned his duties. The Schuylkill Canal, under private management, has been enlarged to 6 feet by 60, (the best possible size,) 108 miles long, and has a descending lockage all the way from the coal fields, and has a constant and steady business in the transportation of coal. Before the Philadelphia and Reading Railroad was projected and completed, the stock of this canal company was up to $160 for $50 paid per share, giving at that time 20 per cent dividends. In the contest with the railway for supremacy, the canal had to intermit its dividends four years, contending for the same trade. The railway, finally, we believe, dictated terms, or rates of transportation, to the canal. They have now, we believe, mutually agreed on a rate to remunerate them for transportation, which, for the railway, for 1857, was $1 41, and in 1858, $1 21, (the average of the seasons, $1 31,) per ton per mile. We have not the official report for 1859. The railway carried also 577,330 passengers, or equal to 211,568 through, during 1857-8, with 4,069,956 tons, (of 2,000 lbs.,) or above two millions of tons per annum. The canal, during the same period, did not transport half that quantity, and during its seven to eight months of navigation is not competent to transport half the quantity the railway has proved itself competent to transport, say four millions of tons The canal, on an average, is closed one year in three, and in New York a longer period.

per annum.

The Delaware and Hudson Canal, supplied by a railway from the mines in Pennsylvania, has sustained itself in name as a canal, and has paid regular and good dividends to its stockholders. This arises, however, from its owners mining and transporting their own coal to the New York market, and then dividing the profits. This is also the principle on which the Lehigh Canal is managed.

The five Middle States had open and in operation to January 1, 1858, 6.894 miles of railroad, costing $309,376,488. We have not at hand the average net earnings on this capital.

From the experience of Pennsylvania with her canals, owned and man

aged by the State-a complete failure- we pass to the State of Delaware. She has a large or "ship canal," to pass coasters between the Delaware and Chesapeake, excavated through a deep cut, at a great expense. The last we heard of this canal, after its completion, was that it passed into the hands of a receiver, to pay Mr. J. Randall, the engineer, and the contractors, for building it. It has disappointed, we believe, its projectors, in passing the coasting trade from Philadelphia through this channel to Baltimore, the railway between these places transporting the valuable tonnage.

The Governor of Maryland, in his message two years ago, informed the Legislature that the State had once been offered one million of dollars for what had cost her above eight millions, invested mainly in the Chesapeake and Ohio Canal, and if the State could again get a like sum offered, it would be best to take it. Further, that the interest on the bonds granted to the Baltimore and Ohio and other railroads had been punctually paid, and was no burden on the State treasury.

Virginia called to her assistance a distinguished French engineer to scale her Alleghany ridge. She has not been successful with her "James River Improvement," nor in her expenditures on the Chesapeake and Ohio Canal, although aided largely by the General Government with funds invested in this work-lost entirely-which in part justifies her in not aiding, or mixing herself with or in, the internal improvements of the several States. Breakwaters, the improvement of harbors, and lighthouses on our sea and lake coasts, are legitimate objects of expenditure from the revenue derived from imposts, not the internal improvement of States. An appropriation of funds to construct a Northern and Southern Pacific Railway to the port of San Francisco, and to the Straits of Fucca and the mouth of the Columbia River, derived from the sale of the public domain, or this source of revenue to be used to pay the interest on the eost, and finally the cost itself, of these two works, calling their cost to be at from one to two hundred millions, and to be managed by private enterprise and directors—a part, say one-third to one half, to be appointed by Congress, and also to be under the supervision of the President and his cabinet-we think a legitimate enterprise for the General Government, under the peculiar circumstances of the case. We are opposed, from past experience, to the General or State governments constructing or managing public works of internal improvements and intercourse between the States.

From Virginia we pass to North Carolina. Between these States we have the Dismal Swamp Canal, constructed originally with the desire and hope of avoiding the risk of Cape Hatteras to the coasting trade of the Chesapeake and the Delaware. In the time of war, if we had not railways, it would be an admirable internal improvement. It has not paid 2 per cent per annum on its cost since its completion.

The other Southern States have but few and short canals. South Carolina has eight river improvements, numbering 52 miles; Georgia two, of 28 miles; Alabama two, of 51 miles; Louisiana, 28 miles; Kentucky five river improvements, of 486 miles, of which we have no account.

The five Southern States have completed and opened, up to January 1, 1858, 4,058 miles of railway, costing $94,885,632. The seven Southwestern States, to the same period, have 2,438 miles opened and in operation, at a cost of $67,128,946; the whole of which is a paying invest

ment, managed by private enterprise, and of incalculable value to bind the interests of these States together, and to connect them with the Western and Northern States. The $900,000,000 invested in 26,000 miles of railway, up to January 1, 1858, is next in amount to the investment in agriculture. It is of the first importance to bind the States and their interests together in iron bands; to distribute intelligence and literature by the mails; and railways make the country invulnerable to foreign attacks. We now pass to the State of Illinois, where the first emigrants, mainly from the State of New York in the first instance, and settled in and south of Chicago, projected and completed the Michigan and Illinois Ship Canal. Although this work started and turned public attention to Chicago as a distributing point to the West, it has been nearly superseded by the numerous railways constructed nearly parallel to it, some thirteen of which have their termini at Chicago, making it the greatest receiving and distributing point of grain in the world, numbering twenty-one millions of bushels.

Statistical reports present the fact that the State of Illinois has doubled her population every five years for the last fifteen years. If the whole amount expended in this State for railways was obliterated, the people and taxable property in it would still be benefited. It is true the new Western States have been constructing railways, for speculative purposes, and in advance of population, to sell lands on grants made to them by the General Government, that has brought the system into discredit as paying works. Eastern capitalists have been tempted by the high rates of interest with mortgages on farms situated on the line of these enterprises, particularly in Wisconsin, to invest their money. We trust, with à little more time, the borrower and the lender will secure the benefit of these investments, as the motto of railways over the whole world is “upward and onward."

The State of Indiana must, forsooth, follow the example of the great State of New York, to her cost and shame, by repudiation. She projected and completed the Wabash and Erie Canal, 469 miles in length, costing, we believe, about $22,000,000-" the longest canal in the United States;" but was obliged to intermit paying the interest on her debt for its construction. At this stage, the unpaid contractors and bondholders took the canal off the hands of the State at half cost-at the time thought

a great bargain. The sequel is-and the lesson should teach the State of New York, (the only one that thinks of canals, except as a bad speculation, and for the management of a State,)—that the purchasers of the canal have been before the Legislature of Indiana with petitions complaining of their unfortunate purchase, and claim that, as the State had granted charters to railways parallel to this "magnificent canal," the construction of which had carried off the business of the canal, although the State engineers of Indiana, at the time of sale of the canal, had, like those of New York, stated to the public in their official reports, and in their hot zeal for canals-or in their ignorance-that railways could not, under any circumstances, compete with canals, they should be remunerated for their loss. One engineer in the State of New York palmed off his official opinion "that it would take six double-track railways by the side of the Erie Canal to do its through business," when he should have known that, at the time, the people were humbugged with this opinion, being about the time the nine millions of dollars was to be borrowed for