something done there as soon as possible, in order that the Territory may realize a revenue from the water rents.

La Belle lake will afford a sufficient supply of water at the point where the canal intersects it, to serve as a feeder as far as the termination on Rock river. This portion of the line passes through a rich and well timbered country, not yet well settled, but one which will admit of a dense population.

The descent from the summit to Cincippi, the western termination, is one hundred and thirty-four feet, forty-six of which is within one-fourth of a mile of the termination, affording to the Territory at that point a valuable water power. It is in contempla. tion to construct a dam across the out-let of North lake, and to turn the water through Pine lake, and thence through a feeder one mile in length, into the summit of the canal. This will not only increase the navigation eight or ten miles, and afford to all who may live upon the borders of these lakes water transportation to the canal, but it will afford surplus water upon the summit. Bark river is also taken in at the summit, the canal crossing it with a dam.

Thus far, I have referred only to the feasibility and locations of different portions of the work, but it is also necessary that I should inform you that the cost of the canal will be less than the limit prescribed by the law, and I should report the estimate, as made, but as the canal company has the direction of the work, and I I am unacquainted with all their plans, it is impossible for me to determine the exact cost of its construction; yet you may rest assured that it will not be more than twelve hundred thousand dollars, provided it is under good management, and the expenditures are judiciously made.

The time which it will take to construct the canal, of course, will depend upon the means obtained for that purpose, and the manner in which they are applied. I would recommend a completion of the work in five years, that being a period in which I think it can be accomplished, and suit the interests of the country. By beginning with the expenditure of one or two hundred thou sand dollare for the first year, and gradually increasing the ap

propriation, as the business of the country will justify it, the canal will be completed in a few years, and the money laid out kept in the country.

There is at this time a surplus produce which would justify an immediate expenditure of fifty thousand dollars upon the canal, and the laborers employed would consume only sufficient to give a market for the products of the farmer.

A branch canal to connect the "Pishtauka" with the main line, should be made as soon as practicable. This will be but a few miles in length, before it unites with navigable water in the “Pishtauka,” and affords to a dense and enterprizing population the facilities of a water communication to the Milwaukee market.

The "Pishtauka " passes through one of the best settled portions of the Territory, all the lands of which, I believe are held by actual settlers, who have raised during the last season fine crops of grain. A large surplus produce has been made last sea son upon that river, and if after a settlement of from two to three years they have produced more than the country consumes, what may we expect when large fields are enclosed, and the soil properly subdued? The interest of the citizens of Walworth county, and that portion of Racine in the vicinity of the "Pishtauka," imperatively demand a speedy completion of the Milwaukee and Rock river canal, in order that they may have a communication by water to the Milwaukee market.

The country through which the Milwaukee and Rock river ca. nal passes, is rich and finely watered, and settling by an industri. ous and farming population. Those who have been in the coun try two or three years have large improvements, and have already provided a surplus beyond what they can consume. From Rock river east, eighteen miles, the country is covered with a dense growth of timber, from thence till within about the same distance of Milwaukee, it is oak openings and prairie, and from thence to Milwaukee it is covered with a rich growth of timber. The whole distance following the line of the canal, is sixty-one miles and twenty-four chains. The soil is peculiarly adapted to raising all kinds of produce which will suit this particular latitude. I have

been thus particular in a description of this country, because I deemed it my duty as Territorial Engineer, to impart to you all the information which I may possess with reference to the canal, or canal lands. The agent appointed to negociate a loan of fifty thousand dollars, not being able to effect it, no contracts have been let, or money applied to the work, on the part of the Terri tory. Akhough the failure to obtain money will prevent an im mediate commencement of the work, yet it is not necessary that it should retard its final completion. By increasing the amount of Territorial bonds, so as to be ready for a favorable change in the money market, the work, when it is commenced, can be prosecuted upon a more extensive scale, and completed within the time anticipated.

The Milwaukee and Rock river canal will give a water commu. nication between the lakes and a tributary of the Mississippi, by a shorter route than any other which has or can be constructed. It unites with Rock river almost directly west of the town of Mil. waukee, affording to all who may live upon the river, a direct water communcication to a New-York market, which now, they can only reach by the way of New Orleans, or up the Ohio river. These two routes have many dangers, difficulties and expenses attending them. If a farmer sends his produce by the way of New Orleans, he has his river transportation to pay to that city, and from thence to New-York, transportation and insurance, which is double the amount which would be paid upon the lakes. There is no certainty of being able to reach a New-York market by the way of the Ohio river, as that stream is too low for naviga. gation from the middle of July till the first of Novembr, the very season in which merchants, wish to bring their goods west. New-York can always be reached by the lakes in the business season, and give to the citizens of the interior, a communication to Lake Michigan, and they are certain of a sure and safe transportation to market, and that communication is obtained by the completion of the Milwaukee and Rock river canal. It is true that Illinois is making great strides with her internal improvements, and will be able in a few years to give access to Lake

But

Michigan upon her public works for our produce. But will Wis. consin remain inactive and suffer the hard earned products to be carried away by Illinois to fill the coffers of that state? It is a self-evident fact, that unless she makes use of the advantages given her by the general government, all the important trade of the country will be diverted into the state of Illinois by her canals and rail-roads.

Wisconsin, with a climate unusally healthy, and a soil equal to any in the world, will not suffer such blessings to escape unim. proved. The Territory will begin a system of internal improve ments by proper arrangements for the prosecution of the Milwau kee and Rock river cana!, the beneficial effects of which, will be felt and applauded by succeeding generations. It is not necessary to involve the future State in a debt, from which she can only extricate herself by a sacrifice of credit, or a system of direct taxation. It is only necessary to make use of the means at her command. Congress perceiving the good effects resulting from mak ing appropriations in lands, will be induced to pursue a magnanimous course towards the Territory and make further appropria tions for other works, in prosecution of the policy already com. menced.

The immediate improvement of the Rock river for steam-boat navigation is an object, not only required on account of its con nection with the Milwaukee and Rock river canal, but to accom. modate an extensive and fertile county through which that stream runs. Heading near Lake Winnebago in the north, it winds its way south, through one of the most beautiful and fertile regions in the world, and empties through the state of Illinois into the Mis. sissippi river. The state of Illinois has made liberal appropria. tions for the improvement of that portion which runs through the state, and which contains the worst obstructions. Those in the Territory are but few and easily removed, and by a proper repre. sentation to the general government, I have no doubt a sufficient appropriation may be obtained for the removal of all the obstruc tions to navigation. The soil upon the shores of this stream, is in many places in a fine state of cultivation, and in a few years

we may expect to see it lined with an industrious and wealthy population.

Already a number of towns of several hundred inhabitants have sprung up, and filled with stores of merchandize for the accommo. dation of the settlers. But the merchants have to labor under great disadvantages in the transportation of their goods, and of course must sell at a great advance to save themselves from loss. This extra cost comes out of the farmers, and must continue to be drawn from them till a more easy means of reaching market is provided. Thousands of bushels of wheat, which are selling from three to four shilling per bushel, could be exported from Rock river, the receipts of which in the east, would serve to enrich the farmer and the country, and renovate the drooping spirit of inacti vity, and cheer up the disappointed and disponding. From there being no pine upon any of the tributaries of Rock river, the inhabi. tants are at great inconvenience and expense in obtaining the requisite lumber for building. They have to pay from fifty to sixty dollars per thousand for pine lumber, and obtain it with difficulty at that. At Milwaukee, such lumber is selling for from twelve to fifteen dollars per thousand, and if the Milwaukee and Rock river canal were open, it could be furnished on any part of Rock river for twenty or twenty-five. The great quantity which would be sent from Milwaukee, would make no small item in the business of that place, and of the canal. This is only one commodity I have named, but many others might be mentioned with equal propriety, in demonstrating the importance of a means of transportation

west.

In connection with the Milwaukee and Rock river canal, the improvement of the Pecatonica is an important consideration. Entering the state of Illinois, from the southwest corner of Iowa county, Wisconsin Territory, it winds its way through a rich and beautiful country, and empties into Rock river a few miles below the state line. The Pecatonica is a deep and sluggish stream, and I have learned from those who have boated lead upon it, that it would be an easy maiter to make it navigable for boats of light draft up to the Territorial line. From thence I can speak from