Internal Improvements.—This State has entered with great spirit upon a system of internal improvements. It consists of canalling, improving river navigation, rail-roads, and common turnpike roads.

Wabash and Erie Canal.—This work will extend from La Fayette, on the Wabash river, up the valley of that stream, to the Maumee and to the boundary of Ohio; distance, 105 miles. The cost of construction has been estimated at $1,081,970, and lands to the amount of 355,200 acres, have been appropriated by the general government, the proceeds of which will be sufficient to complete the canal to Fort Wayne. The middle division, 32 miles, was completed in July, 1835, and the remainder is in active progress. Its whole distance, through a part of Ohio to Maumee bay, at the west end of lake Erie, will be 187 miles.

The Whitewater Canal, 76 miles in length, along the western branch of Whitewater, is intended to pass through Connorsville, Brookville, Somerset, and other towns, to Lawrenceburgh, on the Ohio river.

Provision is made to improve the navigation of the Wabash river, in conjunction with Illinois, where it constitutes the boundary line, and, by this State alone, further up.

Rail-Roads.—From Evansville, on the Ohio, to La Fayette on the Wabash, 175 miles; from La Fayette to Michigan city, 90 miles; forming a line from the Ohio river to lake Michigan, 265 miles in length:—From Madison, on the Ohio, to Indianopolis, the seat of government, 85 miles; and several others were projected two years since. But at the session of the legislature of 1835-6, a bill was passed to borrow, in such instalments as should be needed, ten millions of dollars; and a system of internal improvements, including canals, rail-roads, and the improvement of river navigation, was marked out. In a few years, this State will be prominent in this species of enterprise.

Synopsis of Canals surveyed by order of the Indiana Legislature during the Year 1835.

La Fayette and Terre Haute division of the Wabash and Erie canal. Length, 90 miles; total cost, $1,067,914.70; per mile, $11,865 79.

Central canal, north of Indianopolis. Total length, from Indianopolis via Andersontown, Pipe creek summit to the Wabash and Erie canal at Wabash town, 103 miles 34 chains; total cost, $1,992,224.54; per mile, $17,106 51. Length, via Pipe creek summit to Peru, near the mouth of the Missisinawa, 114 miles 46 chains; total cost, $1,897,797.19; per mile, $14,871.85. Length, via Pipe creek summit (including lateral canal to Muncietown) to Wabash town, 124 miles 51 chains; total cost, $2,103,153.61; per mile, $15,873.83. Length, via Pipe creek summit (including lateral canal to Muncietown) to Peru, 185 miles 63 chains; total cost, $2,008,726.26; per mile, $14,793.12. Total length, from Indianopolis via Muncietown to the Wabash and Erie canal at Peru, 131 miles 41 chains; total cost, $2,058,929.41; per mile, $14.549 71.

Central canal, south of Indianopolis. Total length, from Indianopolis to Evansville, 188 miles; total cost, $2,642,285.92; per mile, $14,054.71. Route down the valley of Main Pigeon. Length, 194 miles; total cost, $2,400,957.70; per mile, $12,376.02.

Terre Haute and Eel river canal, which forms a connexion between the Wabash and Erie canal and White river or Central canal. Total length, 40½ miles; total cost, $629,631 65; which, including a feeder, is $13,540.46 per mile.