measure, by virtue of a position which by the partiality and exertions of his friends, (myself among the number) he chanced to occupy— by one weak or malignant act, dashes the whole into fragments and defeats the just hopes of the real friends of the measure, and of those who had reposed the highest confidence in him. Let them reflect on these things and then let them candidly answer the question whether, if I had exhibited even more of feeling, I would not have been perfectly justifiable.

In speaking of Mr. Tweedy's conduct, I have had reference to it as a canal commissioner only, and not as a member of your honorable body; nor should I have had occasion to speak of him as such, if his conduct as commissioner had been duly presented to the peoplestill, so long as he fills the place he now occupies, (though brief it may be,) I shall, as in duty bound, in this and in all other communications to your honorable body, regard him (simply as a member) with all courtesy; but in the examination of his merits in any other capa city, I feel bound to state the facts as freely as I would in relation to himself or any other officer, who in that or any other capacity had abused the trust confided to him.—It is a natural right of which I shal ever avail myself, to repel any unjust assault upon my reputation from any source, whether from private or public station, and especially so when coming from one who chooses to requite numerous benefits by gross ingratitude.

Among the various means to which the opposition have resorted, to agitate and prejudice the public mind, and sow distrust and discord among the friends of the canal, a favorite one appears to have been to represent that I am indifferent about the progress of the canal, any further than to secure the water power which is now nearly completed at Milwaukee, and which the canal company have the means of finishing. To such a report I have only to answer that it is not founded in truth. No person ever heard me utter a word or a sentiment which would bear such a construction. My whole course of conduct has been a direct refutation of it.-The loans which I have made during the past summer, being more than four times sufficient to complete this water power, are a sufficient refutation of it-and the conduct of those who retail such stuff is a clear refutation of it: for if they believed as they profess, that neither myself nor the canal company

wished to progress further with the work, why are they constantly endeavoring to break it down by their hostility? If they believe what they assert, why do they not let the canal alone, and let it die a natural death in the hands of those who brought it into existence? They too well know that if the canal policy were let alone by them, it would go smoothly on; and their efforts to combat and arrest it, are conclusive evidence that what they profess to believe and endeavor to impress on others, is a hollow and baseless pretence.

The opposition to the canal had its origin in Milwaukee, and its objects were two-fold. The first, and the great point of opposition, was entirely local, and arose from the fact, that by the location of the line a valuable water power would be created in the town of Milwukee,on the west side of the river; and that therefore, (as was sagely concluded by certain wise quidnuncs) it must of necessity be injurious to that part of the town situated on the east side of the river. I could never see the force of this conclusion, but it has nevertheless been used with great force. The other principle ground of opposition has been produced by an attempt to turn to political account the grant of land. But though the agitators on this subject have been obliged to change their ground, yet they still continue the senseless cry. When the law was first passed by Congress, the great point of opposition was that no pre-emption right was granted. But when the Legislature authorized a credit sale, and did grant in effect a pre-emption right to settlers, and when the General Land Office did grant a suspension of sales on the even sections which were occupied, thus virtually giving a pre-emption and credit-this ground of opposition was removed. But determined opposition is not easily removed, and failing in the first ground taken, the next was to discuss the hardship of the settlers paying $2,50 per acre for the land, and to render that hardship more apparent, resort was had to every possible method of arresting the work so that the purchasers should be deprived of those advantages which they had a right to expect; and then an endeavor made to fasten the odium of the suspension of the work, so produced by them, on the skirts of those whose every exertion has been to promote the work, and with the work the best interests of the country, and of those who have had to pay an enhanced price for the

land. The country has been needlessly agitated on this subject, and in a great measure for sinister purposes. But let those who have opposed the canal for local reasons, yea, and for political reasons too, beware! Let them beware lest the patient drudgery of the canal company should at length yield to accumulated opposition, and give up the contest. Let them be admonished that there is a limit beyond which patience and fruitless exertion ceases to be a virtueeven in a canal company-and that by possibility they may be permitted to have their own way-the greatest misfortune which could befal them.

This subject has been environed with difficulties from its first inception, of an unexpected and unprecedented character. But notwithstanding this local hostility, I still hope that the wisdom of the Legislature may point out some course either by the continuation of the canal, or by some other work of equal public utility, which may more effectually unite all parties in its support whereby great good may yet be secured to the country on the basis which has been already successfully laid, and to some extent carried out by actual result.

It has been seen that loans to the amount of $56,000 have been made, of which amount $11,000 only have been actually deposited and certificates placed in my hands. These certificates were for $1,000 at Cincinnati, (being in part of the loan of $31,000, leaving $30,000 of that loan suspended for the present,) $5,000 at New York, and $5,000 at Albany. The bonds deposited at Vernon for $15,000 are subject to the order of the persons making the loan, at any time before the first of August next, agreeably to an agreement between the parties to that effect, and on which no interest will be payable until the 20th December, 1842. The first instalment of interest on the remainder of the loan, falls due on the 20th inst., and for so much of the loan as has actually been deposited, I have remitted the necessary amount to discharge the interest. This I have done to save the credit of the Territory from the effect of negligence, on the part of the commissioners to provide the necessary means for this purpose, as by law it was their duty to do. I have not discharged the interest on the remaining part of the Cincinnati loan, preferring

to refer the question to the Governor and Legislature to decide as to what obligation the Territory may be under in relation to the interest on that loan; the performance of which has been arrested by one of its own officers, without any fault on the part of the person contracting for the loan. I am well assured that he was and has been ready, to perform the contract on his part, punctually and faithfully, and it may be a question whether he is not rightfully entitled to damages, either from the Territory for a non-performance of the contract on its part, or from the officer individually, who has assumed to arrest the contract on the part of the Territory, without lawful authority so to do. That the person contracting for these bonds did provide the means to pay the first instalment is an unquestionable fact; and that he was prevented from a performance on his part by one of your officers, I conceive equally clear-how far then the Territory ought in justice to be held responsible for the interest on these bonds, or for specific damages for non-performance in the delivery of them, must be left to the enlightened wisdom of the Legislature to determine.

Out of the amount which has been placed in my hands ($11,000,) I remitted to the the Receiver $1,000, leaving $10,000 in my hands to be accounted for. This fund I have declined placing in the hands of Mr. Tweedy, being well satisfied that if placed in his possession, he would under some technical plea, refuse to disburse it at all, and thus consummate what had been well begun, a total overthrow of the whole work. It has not therefore been placed at his disposal but in lieu thereof I have individually provided funds, and paid on certificates of the Engineer, a sum which added to the contingent expenses of negotiating the loan, and the remittance to discharge interests on the bonds, amounts to $10,041.87, being $41,87 more than I have received on the loan.-These certificates are the proper vouchers on which the law makes it the duty of Register to draw his check on the Receiver for payment-but on demand for such checks, Mr. Hustis, the Register, refused to issue them, without assinging any satisfactory reason. His acts, however, have made the reason so palpable, that I am at no loss to comprehend it. It is simply, as I fully believe, a pre-determination on the part of Mr. Hustis, to aid in sustaining

untenable postition of Mr. Tweedy, though it should involve him in an open violation of his duty under the law.

By the course which I have pursued, the work has been successfully progressing. The contractors have been steadily performing the work under their contracts, in a neat and substantial mannerthe estimates have been regularly made and duly certified by the Territorial Engineer, at the end of each month-the contractors have regulary received their pay on those certificates—and it only remains for the Territorial officers to discharge faithfully the duties imposed on them by law, to perfect a proper adjustment of those payments on the part of the canal fund, and the funds received on loans.

Considering the tone of feeling which has been but too clearly exhibited, and which I had no doubt would actuate Mr. Tweedy in the disposal of the funds obtained on the loan, I would sooner have rescinded the loan, or assumed it myself on behalf of the Canal Company, than permitted it to go into his hands to be locked up as a fund for him and other politicians to quarrel about. Even now, if the Territory prefer to stand indebted to the Canal Company for the same amount, bearing the same rate of interest, (as it must do under our charter for all company expenditures,) instead of these bonds, I have but little doubt but that the company would freely assume the debt. It would however, be a useless transfer of securities, for sooner or later the Territory or State, will have the whole cost of the work to pay either to the Canal company, or to those from whom loans may be made to construct it.

An account of the expenses incurred in negotiating the loan, and the bonds not negotiated (amounting to $44,000,) are at the service of the Governor and Legislature, to be disposed of in such manner as they deem to be for the interest of the Territory.

I have thus presented as clearly and succinctly as I could a statement of the facts and circumstances relative to the discharge of my duties as loan agent, and hope, as I trust, it will be satisfactory to your honorable body. I have had one only object in view in the discharge of those duties, and that has been to secure as far as possible, the success of the canal, and the true interests of the Territory as connected with it.