Broadly stated, the problem that now presses for solution amounts to this—In what way can we best take advantage of the well-ascertained fact that under ordinary conditions a ton of goods can be transported about 2000 miles by water for the same cost that it can be sent 100 miles on land? It is no unusual thing to find that a ton of goods can be transported 40 miles by steamer for one penny, making allowance for every charge.[1] It is not, of course, pretended that goods can be carried by inland navigation for anything like this rate. But it has been well established that even on canals, with all the disadvantages of slow speed, limited depth, small boats, frequent locks, and other drawbacks, the transport of heavy traffic can be effected for less than one-sixth of a penny per ton per mile, which is not one-half of the lowest rates at which the railways of Great Britain carry mineral traffic at the present time. It is necessary to add that canal companies do not, in Great Britain at least, carry for anything like the low rate stated, except perhaps on the Weaver Navigation, which is quite exceptional. An important question that naturally occurs to any one who has studied the history of canal navigation in foreign countries is that of how far it is the duty of the State to take such waterways under its control. This is really a political problem, which scarcely belongs to that part of the subject which we have undertaken to consider. It may, however, be observed that in the United States, in France, and in one or two other countries, canals have been acquired by the State, and made as free of tolls as the rivers. This, of course, affords to canal transport in those countries a striking advantage over the system in Great Britain. It has been calculated by a high authority[2] that an expenditure of 12,000_l._ per mile would be required to put the inland navigations of England into good order, and to adapt them generally for larger traffic, with steam-tugs and barges or boats of sufficient size. This would mean for the 3000 miles of canal already constructed an expenditure of 24,000,000_l._ It is calculated that about 20,000,000_l._ have already been expended upon our waterways,[3] so that the total outlay, after the expenditure suggested by Sir John Hawkshaw, would be about 44,000,000_l._ If the State were to borrow this sum, it could procure it, no doubt, at 3 per cent., which would mean that the total annual burden entailed upon the country by the freeing of the canals would be 920,000_l._, or only a 1/125 part of our total national expenditure. This is certainly a small price to pay for so desirable an object. But upon the proposal as just stated there are two important remarks to be made—the first, that the suggested expenditure of 12,000_l._ per mile would only give us canals adapted for the navigation of large barges or vessels of not more than 150 to 200 tons, whereas what is chiefly required is internal water