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Plans, which afford a satisfactory detail of this work, accompanied by copy of a Correspondence letter addressed to me by Colonel By on the occasion. In this communication relative to the you will perceive the views entertained by this officer, both to facilitate the settlement of the lands in the neighbourhood and on the banks of the Canal, and for the gradual developement of the Ottawa and the country above the Chaudière Lake.

He appears to consider that the increase of the lumber trade would pay a very ample interest for the sums expended in these improvements, and that this trade requires only these facilities of transport to be increased in any proportion; the red pine particularly appearing to be inexhaustible in that direction. He wishes to convert the timber channels at the Chaudière into locks, which he calculates would cost £. 20,000, and that the revenue of these locks should be applied to forming others at the Chat Rapids, and so on gradually, whilst the resources of this great river should encourage the experiment. He supposes also that these operations would terminate in the establishment of a permanent communication between the Ottawa and Lake Huron, which would certainly be a result of extraordinary importance to these provinces. We know that these communications, though interrupted, do exist, both in the line towards Lake Simcoe, and in several directions towards Lake Huron. The north-west traders are well acquainted with the route from this lake through French River by Lake Nipissing, to the Mattawoen, where the Ottawa abruptly turns to the north. On this subject a paper was put into my hands at By Town, detailing a journey of discovery undertaken to ascertain these objects; and as a record of future reference in case the matter of it should ever be under discussion, I venture to lay it before you for their Lordship's information. It is an account of a journey to the Rapids of the Deux Rivières on the Ottawa, where the river separates the high lands of Upper and Lower Canada, and from thence to Penetanguishine, on Lake Huron, and is another proof of the imperfect information we possess of the extensive country so near our own settlements.

I have the honour to be, Sir,
Your very obedient servant,

Canal Communication in Canada.

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No. 128.-LETTER from Lieut.-Colonel By to R. J. Routh, Esq.

SIR,

&c. &c. &c.

Royal Engineer's Office, Rideau Canal, 10 July 1830.

I HAVE the honour of inclosing, agreeable to your wish, for the information of PLANS. the Lords of the Treasury, Three Plans to accompany your Report to their Lordships on the state of the works of the Rideau Canal, when I had the pleasure of showing them to you in June last; and I beg to state that the bridges erected across the Ottawa, at the falls of the Chaudière, cost only £. 3,316. 18. 3.; their tolls are let for £. 200 per annum Halifax currency, and their construction caused a saving of upwards of £. 40,000 at the commencement of these works in the masonry of the locks, as the very persons who are now building the locks at 1s. 1d. per cube foot, declared they could not be built for less than 4s. per cube foot before I commenced building the said bridges, on account of the difficulty of commu

nication.

The Timber channel, which I formed in the winters of 1826 and 1827, by order of the Earl of Dalhousie, cost £. 2,000 H. C.; this sum was paid by the two provinces out of the duties collected on the timber, which amounts to between £. 4,000 and £. 5,000 per annum; and I am happy to state that this trade is so rapidly increasing, that although Mr. Wright has formed another timber channel on the Hull side, to pass which the lumberer has to pay 5 s. per crib, there is more timber collected on each side of the river above the falls than can be passed this season, which plainly points out the necessity of something more being done to prevent this trade being shackled by individuals.

The Diagram shows the land purchased for the use of the Rideau Canal, and the Crown and Clergy reserves on the borders of the Canal, which I recommend

Correspondence

relative to the Canal Communi

cation in Canada.

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Government to keep in their own hands, and settle the Emigrants on them
immediately, by giving Fifty acres to each at a low rent per annum; this would
duce a dense population, and if they proved good settlers they might be moved to
lots of 200 acres, and their fifty acres let to fresh emigrants; but on the present
system the emigrants have no where to settle, and numbers wander to me in a
starving state, asking for land, and when they are shown the back concessions, being
afraid to encounter the wilderness, they pursue their journey until they reach the
United States, which I trust my project would in a great measure check.

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No. 129. -LETTER from R. W. Hay, Esq. to the Hon. James Stewart,

SIR,

&c. &c. &c.

Downing-street, 2 Feb. 1831.

I AM directed by Viscount Goderich to transmit to you the copy of a letter from Mr. Byham, stating, by desire of The Master General and Board of Ordnance, that the undermentioned Sums will be required for carrying on the Works of the Rideau and Grenville Canals, in the present year; viz.

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I am to request that you will lay the same before the Lords Commissioners of the Treasury, acquainting their Lordships, that Lord Goderich is disposed to recommend that Estimates for the whole sum proposed by the Ordnance, however large the amount, should be submitted to Parliament; and thus the necessity may be avoided of continuing the expenditure of public money, not voted by Parliament, on Works which from their advanced state may be expected to be completed in August next.

I am, Sir,

Your obedient Servant,

R. W. Hay.

No. 130.-LETTER from R. Byham, Esq. to R. W. Hay, Esq.

&c. &c. &c.

SIR, Office of Ordnance, 24 Jan. 1831. THE Master General and Board of Ordnance having taken into consideration the question as to the sums which will be required for carrying on the Works of the Rideau Canal and Grenville Canal in the present year, for which services the money is not voted in the Ordnance Estimates;

I am directed to acquaint you therewith, for Viscount Goderich's information; and to request you will submit to his Lordship, that upon considering the necessary reports and documents upon this subject, the two following Sums are those which the Master General and Board suggest should be voted in the Colonial Estimate for the year 1831, the works being all in progress and reported to be indispensably necessary; viz.

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Correspondence No. 131.—A STATEMENT of the Amount granted and applied, and required relative to the to be granted, for completing the Canal Communications in Canada.

Canal Communication in Canada.

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The foregoing is exclusive of the St. Ann's Rapids, of which no Estimate has vet been received; and exclusive also of block-houses and other works for the defence of the Rideau Canal, on account of which an Estimate of £. 69,230. has been received.

Whitehall, Treasury Chambers, 8 February 1830.

T. Spring Rice.

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Comm R Engineer's Office, Quebec 8th March 1830

EW.DURN FORD COL!

Comm! Royal Engineers,

CANADA.

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