When you received my promise to attend as a delegate the Chicago Canal Convention, little was it then supposed by me, that duty would call me before that time to Europe. So much of my promise, however, as embraced the discussion of the question, will now be redeemed. The project of an enlarged thorough-cut canal, uniting Chicago and the lakes with the Illinois river and Mississippi, has long attracted my attention. As a Senator of the United States, for many years, from a Southwestern State, then devoted to the Union, and elected to the Senate on that question, I have often passed near or over the contemplated route, always concluding, that this great work should be accomplished without delay. Every material interest of our whole country demands the construction of this canal, and the perpetuity of the Union is closely identified with its completion. It is for the nation's benefit, and should be the nation's work. It will give new outlets to the Mississippi, through the lakes, to the ocean, and neutralize that too exclusive attraction of Western commerce to the Gulf, which has so often menaced the integrity of the Union. We must make the access from the Mississippi, through the lakes, to the ocean, as cheap, and easy, and eventually as free from tar or toll, as to the Gulf, and the flag of disunion will never float again over an acre of the soil, or a drop of all the waters of the mighty West.

It is clear that, centuries ago, the lakes and Mississippi were united, through the Illinois and Wisconsin rivers, and we must remove the obstructions, now divorcing their waters, and restore their union, by thorough-cut canals. In a few years, the saving of transportation, in a single year, would more than pay the cost of the work. The increase of population, wealth, products, imports, exports, and revenue, which would follow the completion of this work, can scarcely now be estimated, and it should be accomplished if for no other reason, as a most profitable investment of capital for the benefit of the nation.

But, great as is the importance of these enlarged canals, uniting the Illinois and Wisconsin rivers with the lakes, other great works, connecting with the East, are indispensable. But great as is the importance of these are the enlarged locks of the Erie, Champlain, Black River, Syracuse, and Oswego, Cayuga, Seneca, Chemung, and Elmira to the Pennsylvania State line, Rochester, and Alleghany River. Nearly all of these are 70 feet wide and 7 feet deep, and require only an enlargement of the locks, whilst a few require to be widened and deepened. The Chemung canal connects the Susquehanna with the Erie canal, at Montezuma, and the Chenango is nearly completed to the north branch of the Susquehanna at the Pennsylvania State line, whence, the Susquehanna canal passes through Wilkesbarre, Northumberland, Middleton, and Wrightsville, to Havre de Grace, in Maryland, on tide water, at the head of Chesapeake Bay. The great canal, from the southern boundary of New York, down the Susquehanna to tide water, is now five feet deep, and from 40 to 50 feet wide, and can all be readily enlarged to the dimensions of the Erie canal. With these works thus enlarged, the connection of the lakes would not only be complete with the Hudson, and by the Delaware and Raritan canal with the Delaware, and by the Delaware and Chesapeake canal with the Chesapeake Bay, but also by the direct route, down the Susquehanna, to Baltimore, Norfolk, and Albemarle Sound. Is not this truly national, and is it not equally beneficial, to the East and the West, to open all these routes for large steamers? The system, however, would not be complete, without uniting Champlain with the St. Lawrence, Ontario with Erie, and Huron and Michigan with Superior.

The enlarged works should also be provided through Wisconsin, Indiana, Ohio, and western Pennsylvania, to the lakes, to the extent that these canals can be made of the dimensions of the Erie, and supplied with water. Nor should we forget the widening of the canal at Louisville, the removal of obstructions in the St. Clair flats and upper Mississippi, and the deepening of the mouth of this great river. The construction of these works would be costly, but as a mere investment of capital, for the increase of our wealth and revenue, they would pay the nation tenfold.

As the main object of these works is cheap transportation, the tolls should be diminished, as the works were completed, to the full extent that freight could be carried more cheaply in large boats, and provision should be made for an adequate sinking fund, so as gradually to liquidate the whole cost, and then to collect no more toll than would pay to keep the works in repair. Such is the true interest of the States and of the nation. If New York could collect a toll for navigating the Hudson, it would be against her interest, for the diminution and diversion of business, and tax on labor and products, would far exceed the net proceeds of any such toll. The same principle will apply to these canals. As some of them, unfortunately, are owned by private companies, adequate provision should be made, to prevent these aids from being perverted to purposes of individual speculation. The Erie and Ontario canal, at the falls of Niagara, and the Superior, Huron, and Michigan canal (less than a mile long), at the falls of St. Mary, should be made ship canals, much larger than those of Canada.

The cost of all these works may exceed $100,000,000, but the admirable financial system of Mr. Secretary Chase, would soon supply abundant means for their construction. Already the price of gold has fallen largely, our legal tenders are being funded, by millions, in the Secretary's favorite 5-20 sixes, and we shall soon have, under his system, a sound, uniform national currency, binding every State and citizen to the Union, and fraught ultimately with advantages to the nation, equal to the whole expense of the war.

In passing down the Susquehanna canal, at Middletown, commences the canal which, by way of Reading and the Schuylkill, connects Philadelphia with the Susquehanna and the lakes. Most of this work is already six feet deep, but the whole route, if practicable, should be enlarged to the dimensions of the Erie canal.

I have met in the British Museum some documents showing the original project (absurdly abandoned) for a large canal from the Schuylkill to the Susquehanna. A slight change will restore this work, and give to Philadelphia a complete seven-foot canal, via the Schuylkill and Susquehanna to the lakes, as short as from New York, and through a richer country, both mineral and agricultural. It appears that Washington and Franklin both favored this route.

1. Gunboats, and large commercial steamers, could then pass, without interruption, through all the lakes, to the St. Lawrence, the Hudson, the Delaware, Susquehanna, Chesapeake Bay, Albemarle Sound, the Ohio, and Mississippi.

2. In case of war, foreign or domestic, the saving to the Government in prices of articles they must buy, and in transportation of men, munitions of war, supplies, and coal, would be enormous. It is believed that the excess of cost in prices and transportation during this rebellion, occasioned by the want of these works, WOULD MORE THAN PAY FOR THEIR CONSTRUCTION. Nor is this the only loss, but victories no doubt have often been turned into defeats, for the want of proper facilities for the movement of gunboats, of supplies, and munitions, and the rapid concentration of troops and reënforcements.