or derived from its school lands, is divided among the several districts according to the number of children between certain ages in each, or in such other manner as may be directed by law. If the moneys thus received are insufficient to pay the wages of teachers, the deficiency is collected from the persons whose children have been taught in the schools, by rate bill.

§ 8. The towns, or townships, are divided into districts of suitable size for schools, which are called district schools. They are also called common schools, from their being supported by a common fund, and designed for the common benefit; and perhaps also from the lower and more common branches only being taught in them. One or more trustees or directors are annually chosen to manage the affairs of the district; also a district clerk, to record the proceedings of all district meetings; and a collector to collect taxes assessed upon the inhabitants for building and repairing schoolhouses, and all rate bills for the payment of teachers.

§ 9. The highest common school officer is the state superintendent of common schools. The superintendent collects information relating to the schools; the number of children residing in each district, and the number taught; the amount paid for tuition; the number of school-houses, and the amount yearly expended in erecting school-houses; and other matters concerning the operations and effects of the common school system. If there is no other officer whose duty it is, the superintendent also apportions the money arising from the state funds among the several counties. He reports to the legislature at every session the information he has collected, and suggests such improvements in the school system as he thinks ought to be made.

§ 10. There is in each county an officer who receives from the state superintendent the money apportioned to his county, and apportions the same among the several towns of the county. He also reports to the state superintendent the number of children in the county; and performs such other duties as the law requires. In some states, there is no such officer; but the money is apportioned by the state superintendent among the towns; and the reports from the towns are made directly to the state superintendent.

§ 11. In the towns there are officers whose duties are, to examine teachers, visit schools, apportion the school moneys

among the districts, and to collect the lists of the number of children in the several districts, with such other information as the law requires, and report the same to the county officer, or if there is none, to the state superintendent. In some states, there is in each county an officer, or a board of officers, for the examination of teachers, and for the performance of certain other duties relating to the schools of the county.

§ 12. Academies and colleges also receive aid from the state, to a limited extent. A distinct fund is created in some states for their benefit; in others, they are aided by special appropriations from the state treasury.

CHAPTER XXIII.

CANALS; RAIL-ROADS, &C.

§ 1. IN further carrying out the purposes of government, provision ought to be made to secure to the citizens the means of obtaining a suitable reward for their industry. As all must contribute to the support of the government from the avails of their labor, the government ought, by all just and proper means, to render the labor of all, as nearly as may be, equally profitable.

2. The people of a large state do not all possess equal advantages. Those who reside near navigable waters and good roads, are better rewarded for their labor than others who reside at a greater distance from them. A farm in the vicinity of a good market, may possess double the value of another of equal size and fertility, in a remote part of the state; because a large portion of the value of the products of the latter is expended in transporting them to market. And those who reside far in the country must also pay higher prices for the goods they purchase, to remunerate the merchants for the cost of transportation. Hence the necessity of good roads, canals, or other means of facilitating intercourse between distant parts of the state.

§ 3. Among the works of public utility, canals are perhaps the most useful, and are to be preferred wherever their

construction is practicable. Canals are sometimes constructed by incorporated companies; but generally these works, especially those of considerable magnitude, are constructed by the state, and are the property of the state. Although there are some states in which there are no canals of the latter description, it may be interesting to young persons to know how so important a state work is accomplished.

§ 4. To raise the money necessary to make a canal, the legislature might levy a general tax upon the property of the citizens; but this would be inexpedient; because, first, the payment of so large a sum within the time in which it would be desirable to complete the work, would be burdensome; and secondly, the burden must fall alike upon the people of all parts of the state, whereas those residing most remotely from the line of the work, would derive from it no material advantage.

§ 5. When, therefore, a great work of this kind is undertaken by a state, the law authorizing the work usually provides a fund, the income of which is to be applied to this object. This fund consists of such lands, property, and moneys as the legislature may grant for this purpose. A fund was thus constituted in Ohio, at the commencement of the canal enterprise in that state; to which fund congress subsequently made a grant of 840,000 acres of the public lands of the United States lying in that state. Similar grants of land in other western states, have, it is believed, been made for canals or other public improvements.

§ 6. These funds, however, furnish but a part, some of them only a small part, of the money necessary to complete the work and all the states undertaking public improve. ments, may not have the lands or other property to constitute such a fund. The state, therefore, obtains the money, chiefly or wholly, by borrowing the same for a long term of years, relying on the income of the canal fund, and the proceeds of tolls collected on the canals when completed, to repay the cost of their construction. Should the income of the canals and canal fund prove insufficient, the deficiency may be supplied by taxation. The original cost of the Erie canal in the state of New York, completed in 1825, was reimbursed by the revenue arising from tolls and the canal fund, about ten years after its completion, without the

necessity of taxation; and its enlargement now in progress, (1858,) at a cost of nearly $25,000,000, will, it is presumed, be ultimately reimbursed in the same manner.

§ 7. The business of borrowing the money is done, on the part of the state, by persons duly authorized, who give for the money borrowed the bonds of the state, which are written promises to pay the money at the time specified, with interest at the rate agreed on; the interest generally to be paid semi-annually. These bonds are usually given in sums of $1,000 each. The debts of a state thus contracted by issuing bonds, are called state stocks, as the capital or stock required to construct any state work, is obtained by the sale of these bonds. These bonds, like the certificates of stock in a rail-road or turnpike company, are transferable, and may be bought and sold as promissory notes, and constitute an important article of trade.

§ 8. These stocks are taken by men who have large sums of money to lend, and who consider the state a responsible debtor; because, if it has no other means of paying its bonds, the legislature has power to raise the money by taxation. Most of the states have contracted debts in this manner for various purposes; and many of them are largely indebted, not only to American capitalists, but to those of European countries, whence many millions have been sent to the United States to purchase state stocks.

§ 9. Officers are appointed according to law to manage the canal fund, and others to superintend the canals. There are also officers at suitable distances along the canals to collect the tolls, which are charges paid by the masters or owners of boats for the use of the canal.

§ 10. The states of New York, Pennsylvania, Ohio, and some other western states, have prosecuted the canal enterprise on a large scale. And although large debts have been incurred by the construction of these canals, the benefits derived from them more than compensate for the vast expense of their construction.

$ 11. Rail-roads are constructed by companies incorporated for that purpose. The necessity for an act of incorporation is readily seen. Rail-roads pass through the lands of private individuals; and without the authority of law, the land of no person can be taken for such purpose; nor can a law authorize it to be taken unless the work is one of

public utility; nor even in such case, unless compensation is made to the owner for his land; for it is declared by the constitutions of the several states, that "private property shall not be taken for public use without just compensation."

§ 12. If, therefore, the legislature deem such road to be of public utility, they incorporate the company with the requisite powers to construct the road, on making compensation for the land, the value of which is to be estimated in such manner as the law prescribes. The law also prescribes the manner in which the general affairs of the road are to be conducted.

§ 13. The amount of capital to be employed by the company, is mentioned in the act, and is raised in this way : The amount of capital, or stock, is divided into shares of $50 or $100 each. Persons wishing to invest money in the road, subscribe the number of shares they will respectively take. When all the shares are thus sold, and the money is paid in, the company is ready to proceed to the construction of the road. The owners of these shares are called stockholders, who choose from among themselves such number of directors as the act of incorporation authorizes. The directors elect from their number a president.

§ 14. A person buying shares, receives a certificate signed by the proper officers, stating the number of shares he has purchased. The holder of these certificates, if he wishes to make some other use of the money he has invested in the business, may sell his stock to some other person, to whom he passes his certificate, which is evidence of the amount of stock so purchased. Thus these certificates are bought and sold as promissory notes.

§ 15. Stockholders depend, for the reimbursement of their capital, upon the money to be received for the transportation of passengers and freight. Such portion of the income of the road as remains after paying all expenses of running and repairs, is divided semi-annually among the stockholders. Hence the sums thus divided are called dividends. The returns from some roads are so large as to make the investment a profitable one; so that the holder of shares is enabled to sell them at a profit. When shares in the stock of any institution are bought and sold at their nominal value, stocks are said to be at par. If above or below the nominal value, they are said to be above or below par. In