Guys -- I had a machinist friend make me a bit to cut 13/16ths barrels. Cost me about $25, and works fine. When I needed a 3/4ths bit, he had changed jobs and could no longer do "personal" work. So I made a bit from a spade bit -- cheap-o Chinese spade bit, at that. Made 45-degree angles, removed the point on the bottom, and beveled the cutting edges the same way the "regular" spade bits were beveled. Shortened the shank and hardened/tempered the blade. I use the bit in the vertical mill on my "all-purpose" machine (lathe, etc.; also cheap-o Chinese manufacture . . .). I usually make three passes, igradually increasing depth, so as not to overtax the spade bit. Works wonders. Exceptionally clean on maple, a bit rougher on walnut, but still to "spec." The "throw" on my mill is only about six inches, so I have to move the wood and cut six inches at a time. Keep it straight by clamping the wood between two pieces of angle-iron. Cheap, effective and I don't have to send stock blanks off anywhere and pay somebody big bucks to cut barrel channels.
One warning: Some spade bits (maybe all?) are made "to-width" at the bottom, but taper slightly toward the shank. So, if you cut off the corners as I'm suggesting, your 3/4ths-inch barrel channel cutter bit is going to end up slightly less than 3/4ths inch wide. You'll need to measure the width of the spade bit you want to cut -- up 3/8ths of an inch or so from the bottom -- to be sure the sides of the bit at that point measure 3/4ths (or whatever width of barrel channel you're cutting).
-- paul allen, tucson az