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 master or owner of boats for the use of the canal.

§ 8. 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.

9. 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 so taken unless the work be one of public utility; nor even in such case, unless compensation be made to the owner for his land; for it is declared by the constitutions of the several states, and by the constitution of the United States, which is superior to all other constitutions and laws, that "private property shall not be taken for public use without just compensation."

§ 10. 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.

§ 11. 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 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.

§ 12. 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.

§ 13. 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 large commercial cities, as New York, Boston,, and Philadelphia, the purchase and sale of stocks in rail-roads, banks, insurance companies, &c., is a regular and extensive business of capitalists.

EXERCISES.

§ 1. How far do the obligations of a state to its citizens extend?

§ 2. In what does an essential inequality among the citizens of a state consist? By what means may this inequality be diminished?

§ 3. By what authority are canals constructed? Are there any y canals in this state? If so, by whom are they constructed?

§ 4, 5. Describe the manner in which a state undertakes and prosecutes the construction of a canal.

§ 8. By whom are state stocks purchased? On what does the security to owners of state stocks depend?

§ 7. Which states are most distinguished for their canals?

$8, 9. By what authority are rail-roads constructed ? Why is an act of incorporation necessary? What rail-roads, if any, are there in this state?

§ 10. How is the capital stock of a rail-road raised? What officers has a rail-road company ?

§ 11. What quality or property has a certificate of railroad stock?

§ 12. What are dividends? What is meant by stocks being par?

CHAPTER XXI.

Education.-School Fund, Schools, &c.

§ 1. THE happiness and prosperity of a people depend essentially upon their education. In many of the eastern countries, the people are degraded and miserable. This is owing to their ignorance. In some of these countries, Turkey for example, the people are governed by a despot, who rules over them with great rigor; in others, as in some of the African nations, there can scarcely be said to be any government at all. Such is their ignorance, that they know not that there could be any improvement in their condition; consequently, they could not, if they desired, govern themselves as the people of this country do. It is only where the people are well educated, that a free government can be maintained.

§ 2. Hence, if we would be a well governed and happy people, the advantages of education must be enjoyed by the mass of citizens. But there are, in every community, those who have not the means of paying for the instruction of their children: it is therefore the duty of the government to provide the means for promoting the general diffusion of useful knowledge. The state governments have accordingly adopted systems of education, by which the children and youth of all classes may be instructed.

§ 3. But the states do not all provide these means in the same manner, nor to the same extent. In most of them the

schools are supported only in part, in a few of them wholly. at the public expense. In some states a fund has been provided, the income of which is annually applied to this object. A fund, in general, is a sum of money used for carrying on business of any kind. The money, or capital stock, which a merchant employs in trade, is a fund. So the money or other property of the state which is set apart for defraying the public expenses, is called a fund. Funds are thus provided for various purposes; such as the construction of canals, roads, and other public improvements. The interest of these funds, and all other income to the state, are called the revenue.

§ 4. A school fund is sometimes constituted nearly as follows: The state sets apart for this purpose a portion of its public lands; which are lands belonging to the state as a corporate body, and which may be disposed of for public use, and not the land owned by individual citizens. These lands may be sold; and the money arising from the sales constitutes a part or the whole of the fund; this is loaned to individuals, or to banks, or to the state itself, or is in some other way invested, and the interest of this fund is annually appropriated for school purposes. But the income of this fund in many states furnishes but a small part of what is needed for this object. In such cases, a farther sum may be voted by the people of each town to be raised every year for this purpose; or as is the case in some states, a certain sum is annually appropriated out of the state treasury. Or, as in Massachusetts, the whole of the school expenses is raised by a tax upon the citizens.

§ 5. Provision for educational purposes in many of the new states, was made at an early period by the Congress of the United States. While the land now embraced within these states, was the property of the United States, and before a large portion of it was inhabited, or even surveyed, Congress passed a law, designating a certain tract or section of land in each township, to be set apart for purposes of education. In Ohio, for example, about one thirty-sixth part of the lands of the state is public property set apart for these purposes; and it is believed all the North Western States are embraced in the same or a similar provision. These lands

are in charge of the proper town officers, by whom they are disposed of, and the proceeds applied to the support of common schools in the town.

§ 6. Besides the permanent funds described in the preceding sections, a large addition was made some years ago. to the school funds of some of the states, by appropriations from the United States' revenue fund. In 1837, there had accumulated in the treasury of the United States, more than thirty-seven millions of dollars of revenue above what was required to defray the expenses of the general government. This surplus revenue, not being wanted for government purposes, was distributed among the several states, to be kept by them until called for by congress. From its being deposited with the states, it is sometimes called the United States deposit fund.

§ 7. School moneys coming from the state treasury or state fund, are usually apportioned among the several counties, towns, and districts, according to the number of children in each; and each town's share thus received is added to the amount raised in the town by taxation, or derived from its school lands.

§ 8. Each town is divided into small districts of territory, each embracing about as many inhabitants as can be accommodated by a school; hence they are called district schools. They are also called common schools from their being supported by a common fund, and designed for the common benefit. A meeting is held annually in each district for the election of officers. One or more (usually three) called trustees or directors are 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 school houses, and all rate bills for the payment of teachers.

§ 9. The highest common school officer is the state superintendent of common schools. In some states this office is connected with that of secretary of state. The superintendent collects information relating to the schools, the number of children residing in the district, and the number taught, and the amount paid for tuition; the number of schoolhouses, and the amount expended from year to year in erect