hostilities on the grounds that Lincoln had not written the letters. Internal improvements The Illinois governor called for a special legislative session during the winter of 1835–1836 in order to finance what became known as the Illinois and Michigan Canal, which connected the Illinois and Chicago rivers and linked Lake Michigan to the Mississippi River. The proposal would allow the state government to finance the construction with a $500,000 loan. Lincoln voted in favor of the commitment, which passed 28–27. Lincoln had always supported Henry Clay's vision of the American System, which saw a prosperous America supported by a well-developed network of roads, canals, and, later, railroads. Lincoln favored raising the funds for these projects through the federal government's sale of public lands to eliminate interest expenses; otherwise, private capital should bear the cost alone. Fearing that Illinois would fall behind other states in economic development, Lincoln shifted his position to allow the state to provide the necessary support for private developers. In the next session a newly elected legislator, Stephen A. Douglas, went even further and proposed a comprehensive $10 million state loan program, which Lincoln supported. However, the Panic of 1837 effectively destroyed the possibility of more internal improvements in Illinois. The state became "littered with unfinished roads and partially dug canals"; the value of state bonds fell; and interest on the state's debts was eight times its total revenue. The state government took forty years to pay off this debt. Lincoln had a couple of ideas to salvage the internal improvements program. First, he proposed that the state buy public lands at a discount from the federal government and then sell them to new settlers at a profit, but the federal government rejected the idea. Next, he proposed a graduated land tax that would have passed more of the tax burden to the owners of the most valuable land, but the majority of the legislators were unwilling to commit any further state funds to internal improvement projects. The state's financial depression continued through 1839. Selection of Springfield as the state capital In the 1830s Illinois welcomed more immigrants, many from New York and New England, who tended to move into the northern and central parts of the state. Vandalia, which was located in the more stagnant southern section, seemed unsuitable as the state's seat of government. On the other hand, Springfield, in Sangamon County, was "strategically located