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The Bill for the Enlargement of the Illinois Canal Lost.

The St. Louis Democrat of to-day publishes a telegraphic letter stating that yesterday "the house killed the bill for the construction of the ship canal from Lake Michigan to the Illinois river, and the one proposed to pay loyal persons the damages they may have sustained from movements of our armies.

Thad. Stevens succeeded in staving off the consideration of the canal bill at first, by moving to go into committee of the whole on the consideration of the tariff bill. In the meantime, the enemies of the bill mustered up their forces, and when the tariff bill was disposed of, a motion was sprung to lay the canal bill on the table, which barely went through, by a vote of 65 to 63.

The western members, particularly from Illinois, were much chagrined at the result, and complain bitterly of eastern members for being unwilling to make any provisions for the defense and development of the northwest — the granary of the world.

The fate of the canal enlargement has been anticipated a long time, notwithstanding that fact that it has been demonstrated beyond controversy that it was of vital importance as a war measure. The west has no friend in Stevens or other monopolists of legislative favors.