The railroad commences in State street, a short distance below the State House yard; and so steep is the ascent, that the cars are drawn for a mile by horses. Here a steam engine was hitched on, and we started off at a rapid rate. The distance from Albany to Schenectady is sixteen miles, and we travelled it over in less than an hour. Here we were assailed by the agents and captains of the canal boats, and those who could make the most noise and bustle, and obtain the most passengers, were the best fellows. There are three kinds of boats in general use on the canal. The Packet boats, drawn by three horses, and go at the rate of about five miles an hour. They are fitted up in good style, intended exclusively for passengers and their baggage--having elegant cabins, drawing-rooms, berths, &c. Fare, five cents a mile and found. The Line boats--designed for freight and passengers also. These are drawn by two horses, and travel at the rate of two and a half or three miles an hour. The fare is one cent a mile for passage only; and one and a half cents addition per mile, for board. Families travelling to the West, generally take the Line boats. They can travel much cheaper than in any other mode. They furnish their own provisions, and have the privilege of cooking on board the boat. Provisions are plenty and cheap, and can be bought at almost every stopping place, along the whole line of the canal. And the Scows, used exclusively for grain, flour, lumber, &c., which are employed by the farmers to carry their own produce to market. These are drawn by two horses; and many of them have two sets of horses, and stalls made on board to keep one set, while the other draws the boat; and at regular intervals, relieve each other. By this means, they keep the boat continually going, night and day. The Packet boats ply between the large towns on the canal, from Schenectady to Utica; from Utica to Rochester, &c., so that a traveller, in going through the whole route, must shift his baggage and himself from one boat to another, three or four times. But the Line boats run the whole length of the canal, from Albany or Troy to Buffalo.--These boats are furnished with horses by a company, who have them stationed at regular intervals of about twelve miles the whole distance.