Third Line. Wabash and Erie Canal.

Ohio and Indiana, with the aid of a grant of land from Congress, have undertaken in concert a canal, which will connect the Wabash, one of the tributaries of the Ohio, with the Maumee. The greater part of the canal will be parallel to the two rivers, or in their beds; the length of the whole work will be 382 miles, of which 195 are in Indiana, and 87 in Ohio. The greater portion of the Indiana section lateral to the Wabash has been completed, but Ohio has not yet been able to commence her portion, because, owing to an absurd system of establishing boundaries, the mouth of the Maumee, whose whole course is in Ohio, will fall within Michigan. Ohio protests against this arrangement, Michigan stands firm to her claims; both sides have voted the sums needful for war, and both have taken arms; hostilities have even been begun, but the interference of the Federal government has led the parties to consent to an armistice. In this quarrel, Ohio has reason on her side, but Michigan appeals to the letter of the laws as favourable to her. It is probable that in creating Michigan a State, Congress will attach this strip to Ohio, to whom it is so important. In this unsettled state of things, Ohio has suspended the execution of her part of a work, which will give new importance to the mouth of the Maumee.