Letter to De Witt Clinton, President of the Board of Canal Commissioners, of the State of New-York, relative to the Ohio Canal.

NEW-YORK, Nov. 8^th, 1823.

SIR,

Fully sensible of the deep interest that you take in internal improvements, I have the honour to solicit your opinion on a subject of primary interest to the western states, and to the United States in general.

It is in contemplation by the state of Ohio to make a canal connecting Lake Erie and Ohio river; and surveys and explorations are now taking place with a view to that important object. As the funds for this purpose can only, as in the case of the New-York canals, be raised by loans, I would wish to obtain information on the following points, viz.

Whether in your opinion funds can, say in two years from this time, be obtained by loans at different periods, as may be required to the amount of $2,500,000, on the credit, and in the behalf of the state of Ohio, at an interest of six per cent. per annum, by giving satisfactory assurances for paying the interest semi-annually, and reimbursing the principal at the expiration of thirty years.

It would also be highly gratifying, and perhaps materially useful to have your judgment on the practicability, physical as well as financial, of the proposed undertaking; as well as your views on the advantages that will be derived from its completion.

You will take into account that the state of Ohio is free from debt; that her soil and climate are excellent; that her territory is extensive; that he population, next to New-York, will soon be the most numerous in the union; that the canal will, in all probability, be lucrative and productive in proportion to its cost, as that of New-York; and that the revenue derivable from it may be pledged to the holders of the debt until it is extinguished.

Very respectfully,

MICAJAH T. WILLIAMS.

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De Witt Clinton's Reply.

NEW-YORK, Nov 8^th, 1823.

SIR,

Your communication of this day covers a wide field of inquiry, and embraces many important considerations. I shall endeavour to give a prompt and explicit, and I hope satisfactory, reply.

The projected canal between Lake Erie and the Ohio river, will, in connexion with the New-York canals, form a navigable communication between the Bay of New-York, the Gulf of Mexico, and the Gulf of St. Lawrence; of course it will embrace within its influence, the greater part of the United States and of the Canadas. The advantages of a canal of this description are so obvious, so striking, so numerous, and so extensive, that it is a work of supererogation to bring them into view. The state of Ohio from the fertility of its soil, the benignity of its climate, and its geographical position, must always contain a dense population, and the products and consumptions of its inhabitants must for ever form a lucrative and extensive inland trade, exiting the powers of productive industry and communicating aliment and energy to external commerce. But when we consider that this canal will open a way to the great rivers that fall into the Mississippi, that it will be felt not only in the immense valley of that river, but as far west as the Rocky Mountains and the borders of Mexico; and that it will communicate with our great inland seas and their tributary rivers, with the ocean in various routes, and with the most productive regions of America, - there can no question respecting the blessings that it will produce, the riches that it will create, and the energies that it will call into activity.

It must be obvious that there can be no insurmountable physical difficulties to the opening of this canal, if there be a sufficiency of water on the summit level, and the researches which have been made, establish an abundant supply beyond the possibility of doubt. The only questions that can present themselves are those of comparative difficulty, expense, accommodation, and productiveness in the designation of a route; and this must be committed to the decision of able engineers.

I should suppose that the maximum cost of this improvement will not exceed two millions five hundred thousand dollars. In five years, by an annual expenditure of five hundred thousand dollars, this work may be advantageously completed. At a rate of six per cent. there would be wanted 30,000 dollars to pay the first year's interest; the second year 60,000 dollars; the third year 90,000; the fourth year 120,000, and the fifth year 150,000. The only financial difficulty in my opinion will be the procurement of funds for the payment of interest. If the canal be commenced on the lake side, every step of its progress will open a more extended navigation, and be the means of producing revenue, and at the termination of the five years, the profits of the canal will not only defray the interest, but produce a surplus revenue applicable to other objects.

Supposing this canal to be 200 miles in extent, it could undoubtedly by a vigorous effort, be finished in two years, but it is advisable to extend the period to five years. The banks will, in that case, become consolidated before much use. As the operation proceeds, there will be an augmentation of skill, and an acquisition of experience, which will produce economy and improved workmanship; and as one-fifth of the whole sum will in this case be only required for each year, the pecuniary advances that are essential will not be so onerous as if made within a shorter period, and it ought to be recollected that the Erie canal will be completed next year; that Ohio can then avail herself of the aid of able engineers and skilful contractors, and that an undertaking conducted under such auspices, will propitiate public opinion, and secure the confidence of capitalists who are disposed to embark their funds in the enterprise.

I shall now proceed to answer the following interrogatory: - 'Whether in my opinion funds can, say in two years from this time, be obtained by loans at different periods, as may be required, to the amount of two millions five hundred thousand dollars, on the credit and in behalf of the state of Ohio, at an interest of six per cent. per annum, by giving satisfactory assurances for paying the interest semi-annually, and reimbursing the principal at the termination of thirty years.'

I have no hesitation in answering affirmatively. I have no doubt but that funds to the extent specified and on the terms proposed may be procured.

The requisite loan may be obtained either in Europe or in this country.

It will be recollected that there is a vast disposable unemployed capital in Great Britain. The finances of that country are in a state of improvement, and in a period of peace, she now requires no loans. The greatest borrower is consequently out of the market. The moneyed men in Europe have therefore accommodated France, Austria, Russia, and some of the governments in South America, with extensive loans; and certainly none of them affords such ample security for reimbursement as the state of Ohio.

The moral and political institutions of Ohio are all propitious to the observance of good faith; her population is respectable in number, and exceeded by none in elevation of character; her government has been wisely administered; and she cherishes with enthusiasm that spirit of liberty and independence, which is connected with the best interests of man, and the most flourishing condition of states.

Next to New-York, Ohio will be the most populous state in the union. She is susceptible of a population of twelve and a half millions, contains thirty-nine thousand square miles, and has every facility for carrying the pursuits of productive industry to the highest pitch of improvement. She therefore presents all the leading inducements for the confidence of capitalists. She does not owe a cent, and can, it is hoped, so arrange her financial affairs as to meet the interest of the loans. At the termination of one year, New-York will have no further occasion for loans; and in two years, a considerable portion of the funded debt of the United States will be paid off. Capitalists can then find no better place of investment than Ohio.

If two millions and a half are borrowed, every square mile will only be answerable for sixty-four dollars. What an ample security for so small a sum! and it will be recollected that when this canal is perfected it will, by the markets which it opens, increase the value of lands almost immediately fifty per cent. and diffuse the blessings of opulence over the whole country.

In one word, sir, all that is necessary to complete this great enterprise is the will to direct it. Considering as I always have, that it is only a continuation of the Erie canal - that it will promote correspondent advantages, and that it is identified with the stability of our government and the prosperity of our country, I own that I feel a more than common solicitude on this subject.

I have the honour to be, very respectfully,

Your most obedient servant,

DE WITT CLINTON.

MICAJAH T. WILLIAMS, Esq.

One of the Canal Commissioners of the State of Ohio.

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Transcribed from the original text and html prepared by Bill Carr, last updated 6/13/99.