In stating the objections to the first two resources of capital,-its tax of tollage,-I have necessarily been led to consider their collateral consequences also-the biased and perhaps baneful influence which incorporate companies may and often have on government.

With these weighty objections to the resources of individual capital, we therefore can alone, with confidence, turn our attention and our best hopes to a patriotic government, with a productive revenue, as the source of capital competent to the completion of our numerous internal improvements. The ample funds of its treasury would prevent the failure of the design-mutilated plans being substituted fvor grand projects, or even a tardy pursuit and prosecution of the work.

This would leave the private capital of our citizens to pursue and follow up the improvements of our natural resources in the wide field of business which they would open. By the extension of improvements and trade, the government would derive a premium on its expenditures, through its custom-house revenue, without, and which would far exceed, tolls and lockage. In this respect, the government would possess an advantage which could not be attached to capital derived from any other source; nor could it be deprived of it, were they executed by any other capital.

The government, thus acting as a national incorporation, would supersede the use and necessity of separate and selfish associations for these purposes; and furnish them to the country free of tollage. This alleviation of the tax on its capital to our citizens, would operate with mutual reciprocity between them and the government.

But there are political considerations, the consequences of which cannot be estimated by the rule of pence. Our considerate government is so ably devised and constituted as to embrace, with equal facility and effect, ten times the number of states that now belong to it.

The maxims of politicians are, that rivers unite, mountains divide, governments. In our essay on a republican government, we have undertaken to encounter the latter dogma, by embracing the celebrated Alleghany mountains, and their western country, within our territory.

The political advantages of opening water communications around and across the intervening mountains, between the great eastern and western sections of the American empire, are, by expediting and familiarising the intercourse, and by establishing commercial and social connexions between their respective inhabitants, to cultivate genial harmony, and to assimilate their manners in the infancy of our country, which, growing with our maturity, would bind them in their affections to the common government, and secure it from a dismemberment.

The convention which formed our constitution, not anticipating the subject, omitted to provide it with an article for the purpose of applying the surplus revenue to internal improvements. However, its utility is too obvious for the proposition of an amendment for the purpose to meet with an obstacle; and the interest which this state has in the event, is of sufficient inducement for its legislature to be the first to propound it. The amendment ought to endow the national government with the uncontrollable right to enter, range through, and leave the territory of any individual state at discretion. This would avoid the impediments of local prejudices and selfish jealousies-leaving old places to flourish or decline, and new ones to arise, as natural advantages decided.

In the appropriations, it is probable the suspicions of partiality might arise on the part of some states against the proper requisitions of others. These altercations could readily be adjusted by the fair and equitable principle of a dividend of the surplus money in the treasury, in proportion to the sums its custom-house produces to it, until their most important improvements were effected.

The payment of the nineteen millions of three per cent. stock could be deferred with advantage to the country, for the earlier commencement of these improvements. For this purpose I have a sincere wish that the government may not effect the proposed negociations with the holders of the deferred stock.

Having finished my remarks on the Genesee Canal, I shall, in my next, suggest some projects for other improvements of the kind in different parts of the United States.

HERCULES.