“I have great confidence in the Committee on Foreign Relations. I know the sense of justice of that Committee, and of the Chairman of that Committee, and have great respect for it; but I cannot vote to pay any British claim in the face of the insulting response made by the British Government to the proposition even to consider American claims.” Mr. Sumner replied:-- I make no question with the Senator from California with regard to the reply of Lord Russell.… I see that to pay the bill goes against the grain of the Senator; but I believe he, too, is not insensible to the claims of equity. While I have no doubt how the conduct of Great Britain with regard to our losses should be characterized, I am anxious that my own country should be kept firm and constant in the attitude of justice. The bill passed both Houses without a division, and was approved by the President.[35] POWER OF CONGRESS TO MAKE A SHIP-CANAL AT NIAGARA. REMARKS IN THE SENATE, ON A BILL TO INCORPORATE THE NIAGARA SHIP-CANAL, JUNE 28, 1866. June 28th, the Senate took up a bill from the House to incorporate the Niagara Ship-Canal, and the first question was on the following amendment, reported by the Senate Committee on Commerce:-- “SECTION 28. _And be it further enacted_, That this Act shall not take effect, unless the Legislature of the State of New York shall within one year of the date hereof give its assent thereto.” In the debate that ensued, Mr. Sumner said:-- MR. PRESIDENT,--The Senator from Kentucky [Mr. GUTHRIE] gives his judgment in favor of the proposed ship-canal, but he gives his argument against it. He is in favor of delay, and the reason he assigns is, that the country is already encumbered by a large national debt, which we should not increase by any additional expenditure; and he asks, with a triumphant air, whether it has ever before been proposed to reduce a national debt by increasing it. But his question does not meet the case. It is proposed, so far as I understand, to provide additional resources. To that end additional expenditure will be incurred. Out of the additional resources there will be increased means for the payment of the national debt. This is the answer to the Senator; and as I understand him to make no other special objection to proceeding with the matter now, I feel that he is completely answered. I confess, however, Sir, that what fell from the Senator from Iowa [Mr. GRIMES] produced more impression on my mind. His objection to the execution of this work by a corporation, and to allowing that corporation to establish tolls which the people of his State and of other States at the West should be obliged to pay, certainly deserves attention. MR. SHERMAN. And there is the water power.