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SEORETARY WELLES’ REPORT Official Story of the Triumphs of the Navy. Fall of Fort Fisher, Capture of Wil- mington aud Charleston, the Victory in the Gulf and on the Rivers. Important Reduction in the Naval Force. The Rebel Pirates and What They Accomplished. THE IRON-CLADS LAID UP. &. &e. &. Navy Derarruent, Dec, 4, 1805. Sm-~In my last annual report I presented to Congress and the country such description as the occasion seemed to require of the measures of administration by which our naval force had, during the preceding four years, Deen created and organized, with an account of the mothod and manner in which it bad been applied in arduous and unexampled forms of action for the suppres- gion of the rebellion. The review then given of the principal operations and the brilliant achievements of our navy closed with the memorable recovery of the harbor and the almost imprevnable defences of Mobile, In this report, besides the exposition of the ordi- nary business of this depariment, inclading the sug- gestions and recommendations deemed negossary for the proper regulation of the naval service in the prosent condition of the country, it will bo my daty to com- plete the official record pf the triumphs of the navy in the final operations and closing scenes of the war; to indicate the new arrangement ent organization of the goveral squadrons consequent upon the termination of the blockade and the cessation of active hostiitics; to oxhibit the vigilance and energy of our blockading and cruising service, as testilled by the number and value of tho captures made in the uprelaxing and sucessful eftorts to cut off Ulicit commerctal intercourse with rebel ports, and especially to exhibit the policy and measures of the department in effecting at tho earliest moment, in view of returning peace, 2 reduction of naval expenditures, while providing for the prompt re-establishmont at any time of our great naval power in all its eflicioncy to meet tho oxigencies of any possibio crisis in which 1s services may bo invoked to maintain the rights or vincicate the honor of the country. The demands upon the naval eervice, which for four years had beon exacting, wore ralaxed upon the fall of Fort Fisher. That event, and the possession of Cape Foar river, closed ali access to Wilmington, the port of rebol supplies, put an end to illicit traffic with the States in msurrection, and extinguished the last remnants of that broken commerce which foreign adventurers had, notwithstanding constant and severe losses, persisted in carrying on by breach of blockade. The capturo of Wil- mingtoa was preliminary to the fall of Richmond and the surronder of the robe] armics, which were thencefor- ward deprived of supptics from abroad. It released at once a Jarge portion of our naval force, nd led to immediate measures for the reduction of our squad- rons, and the withdrawal of all vessels which could bo disponsed with from the blockade. Such of them as were purchased and no longer required by the govorn- ment have from time to time been sold to mest the de- mands of reviving commerce, which has rapidly ox- panded as the Bountry becume quieted and industry was resumed at the South. ‘Trade and peaceful employment havo led to the reopening of the avenues of commercial ‘and social intercourse, and tho steamers hought from the merchant service for war purposes have been toa great extent returned to their former pursuits, NORTH ATLANTIO SQUADRON—CATIURR GF WILMINGTON AND TIS. DRFENCES. As carly as 1862 the nevossity of closing the port of Wilmington became a primary object vith this dopart- ‘and was never relinquished ; bus without military aid and co-operation it could not be effected or even wisely attempted. In September, 1364, the Department had euch assurances of military assistance as to feel war- ranted in ontering upon the necessary pre p2rations for as- sembing an adequate nasal force to undertake and per- form its part in accomplishing the work. im order that there should be no failure, the department concentrated aeufficiont force to insure success, To place that force under the command of the first officer in the navy was a duty. Vice Admiral Farragut was therefore sclected to condut the enterprise, but impaired health, tho rosult of exposure and unremitied exertions during two years of active labor and unceasing efforts in the Golf, ren- dored it imprudent for that distinguished and energetic officer to enter upon the service. He had, moreover, important work yet to be finished on the Gulf coast, whore he was then operating, aud was therefore cu bis own request excused from this new command. Rear Admirai Porter, who had shown sreat ability as the com. mander of the Mississippi squadron, sud had identified himsetf with many of its tnost imporiut achievements, was transferred to the command of the North Atlantic @quadron, which embraced within its mits Cape Fear river and the port of Wilmincton. A Gost of naval vesseis, surpassing {m9 numbers and equipments any which had avscmbled during the war, was collected with despatch at Hampton Roads. Various, Causes intervened to delay ihe movement, and it was not until the early part of December that the expedition de- for ufort, N.©., the place of rendezvous, further necessary preparations wero there meade, which, together with nufavorable weather and other incidents, delayed the attack nntil the 24th of December, On that day Rear Admiral Porter, with a bombarding force of thirty-seven vesmels, five of which wero 4dron-clads, and ao reserved force of nine. torn vessels, attacked the forts m tho month of Oapo Fear river, md sitenced them in ono ‘hour anda quarter; but, there bong no troops to make an assault or attempt to posaess them, nothing beyond the injary. inflicted on the works and the garrison was accom- plished, by the bombardment. A renewed attack was made the succeoding day, but with scarcely better results, ‘The fleet shelled the forts during the day and silenced thom, but no assault was made or attompted by the troop’, which had been divembarked for that purpose. Major General Bauer, who commanded the co-operat- ing force, after a reconnoissance, came to the conclusion ‘that the @ could not be carried by an assault. He therefore ordered a re-embarkation, and, informing Rear Admiral Porter of his intention, retu with his com- mand to Hampton Roads, Immediate information of t failure of the expedition was forwarded to the Depa ment by Rear Admiral Porter, who remained in the ‘ing the needful mili- ty of reducing these ‘works, and of the great importance which the Depart. Mont atiachod to closing the port of Wilmington, and oonfident that with alequate military co-operation the fort could bo carried, he asked for such co-operation, and @arnostly requested that the enterprise should not bo abandoned. In this the Department and the President faliy concurred. On the suggestion of the President, Lioutenant Gonoral Grant was advised of the confidence felt by Rear Admiral Porter that he could obtam com- rad success, provided he should be suffcientiy sus- ined. Such military aid was therefore invited as woutd insure the fall of Fort Fisher. A second military force was promptly detailed, com- of about 8,500 men, under the command ot A. HL Terry, and seut forward. This officer rived off Fort Fisher on the 13th of January. Offensive wero atonce resuined by ti val force, and @ troops were landed and inirenched theinselves, while a portion of the fleet bombarded the works, These operations were continued throngbout tho 1éth with an Increased number of vessels. Tho 15th was the day a cided upon for an assault. During the forenoon of :batday forty-four vessels poured an incessant fire into the rebel lee, a force of fourteen vessels in At three P. M. the signal for the assault was made. Desperate fighting ensued, traverse after tra- verse was taken, Pang: Fo] P.M. the works wore all carried, and the the Union floated over them. Fourteen bundred = lors and marines were landed and participated in the direct assault. Bovonty-five ee many of them superb rife pieces, undred and nineteen prisoners, were the immediate fruits and trophies: the vir ; but the chief value ‘and ultimate benefit of this achievemont consisted Produce to foreign markets in excban, Light draught steamers were iramedia! ly aud into the river, the channol wi speedily ens the removal of Gt once ev: ‘were res" in the direotion of Witmington, the ves- eels and troops mo" tho mver in concert, Fort Anderson, ap impo: wes evacuated during the night of the 15th of February, General Schofield ad vancing upon this fort with eight thousand ren, while the gunboats attacked it by water. Ou the 2st the rebels were driven from Fort Strong, which left the way to Wilmington uncbsiructed, and on the 22d of February that ctty was cvacuated, Two hun- drod and twelve guns wero taken in the works from the entrance of Old river, including those near the city, and thus this great and brilliant achievement was com- ROUTE ATLANNIC FQCADRON—PALL OF CHARLESTON. In November, 1864, the departineat offteially advised Rear Admiral Dahlgren that Major General Shorman had commenced his march from Atlanta to the seaboard, and that he might be expected to reach the Atlantic coast, in the vieinity of Savannah, about the middie of December, Rear Adwiral Dahlgren was instructed to bo propared to co-operate with Gonoral Shermaa, and furnish Lim any needed nayal assistance which it might be tn his power to render. Before these instructions reached him, Kear Adn#iral Dableren, who was thus not unprepared to hear of the movement of the army from Atlanta to the coast, had conferred with Major General Foster, then com- manding the Department of the South, and concerted with him plans to assist, 80 far as their joint foroes would allow, in establighing communications with the advancing seemed, A combined expedition was at once or; for catting the railroad communication hetween lea- ton and Savannah, and otherwise ging the attention of the insurgents in that quarter, ree was displayed at the most important potuts along the Carolina coast, and every available means adopted to aid in the success of the grand and novel military movement which was in progress through the heart of a hostile country. General Sherman reached the vicinity of Savannah on the 12th of December, and communication between him. and Rear Admizal Dahlgroon was immediately estab. lished, The latter made the best possible di tion of the vessels then under his command, to assist the army ie chinining, poseanion <4: Semen. By the 18th of December the investment of that city, by the navy on one side and the army on the other, was accomplished. ‘The garrison, however, succeeded in escaping acrosa the river and eflecting a retreat towards Charleston, leaving Genes Sherman to occupy Savaunah on the 21st of that month, © / Eariy in January Rear Admiral Dahleron was engaged in asaisting in the transfer of the right wing of the army to Beaufort, 8. C., and in the course of General Sher- man’s march northward tbat officer and his army were aided by all necdfu! naval demonstrations. On the 1uth and 13th of Febr a joint movement was made along the approaches from Ball’s Bay to Mount Pleasant, with a view of ombarrassing ihe milita- commandant at Charleston, and blinding him as io ee ‘actual inilitary design. No real or serious attack on Charleston was meditated. Only a diversion was con- templated at that moment, Other leas extensive move- ments than that at Buil’s Bay were made about that riod, {1 details of which will be found in the 105} es forming a part of the app»fdix to this report. They were intended simply to at. tract the attention of the rebels and aid General Sherman in accomplishing his great purpose of moving towards Richmond. vlosten waa in the meantime vigilantly watched to detect the first indications of its abaudonment by the rebels, which it was known must tale place at an early day.’ The troops stationed there- about were aavanced, and the iron-clads were moved nearor to the robel works. During the night of tho 17h of February the batteries were ocaseleesly employed, and vho vessels in the harbor gave them watchful att: ution. The morning of the 18th revealed tho fact that Charlos- ton was evac vated. Thus, without a final struggle, the original seat of the rebellion, the most inyuinerabie and best protected city onthe coast, whose defences bad cost immenso treasute and labor, was abandoned, and the emblem of unity and freedom ws again reinstated upon the walls of Sumter, ‘The evacuation of Charleston was followed by that of Georgetown on the 23d of February, and on tho 26th of that month the piaoe itself was occupied by Rear Admiral Dahlgren. W8ST GULY SQUADRON—SURRENDRR OF MOBILE AND‘ TIW RKBEL PIER, When Vice Admiral Farragut left the Woet Gulf squad- ron, in the ater autumi of 1864, the command devolved on Commodore James 3. Palmer, senior officer on the station. This officer continued operations until the arri- val of Admiral Farragut’s successor, Acting Rear-Admi- ral Thatcher, who bears testimony to his subsequent efficiency aud untiring services throughout the attack onthe defences of Mobile, and acknowledges also bis indebtedness to Commodore Palmer for the admirable manner in which the vessols bad been prepared for arduous service under that officer's supervision. The Tesumption of offensive operations against the cKy of Mobile, under the direction of Major General Canby, ,was not determined upon until carly in January, when cting RearjAdmiral Thatcher, then recently appointed the command of the West Gulf squadron, was ordered to proceed immediately ur New Orleaus, in order to cow operate with tbe shilitary commander. ‘The force placed under Acting Roar Admiral Thatcher ‘was increased by light drougut irou-clads detached from the Mississipp! squadron for service in Mobile bay. A foint movement by Iand und water was arranged and carried into execution. Indicat:ons that the robels were about £0 evacuate the city led to a naval! reconnoiasance in force to ascertain the facts, on the 11th of March, with five monitors, in as close proximity as the shallow water and obstructions would permit. This movement drew from the insurgents such a fire as to place beyond doubt that those detonees were still intact, The troops were landed on the 2ist of March on tho left bank of Fisher's river, about seventnen miles from its junction with the bay, and advanced as rapidly as the condition of the road would permit, while the naval v sels shelled the woods and kept open communication by signals with General Canby for co-operation. Tho rebels doubtless believed that the naval vessels were not able to cross the bar of Blakely river; and even if suc- cessful in crossing, that it was. in their power to destroy the boats by their marsh batterica and the ijanumerable torpedoes with whicl: the river was filled. They did suc- ceed in sinking two of the Monitors and four wooden gunboats at the entrance of Blakely river, by theso sub- marine implements of destruction, ‘althongh the river had been thoroughly dragged, and many torpedoes were removed before the vessels went over the bur. Beyond the sinking of these vessels and the loss of a few lives no serious consequences attended the to and capture of Mobile. ‘The principal works of defence between the city and the fortresses which guarded the entrance to the bay captured in August, 1864, by the fleet while commanded = vice-Adm raljFarragut, were Fort Alexis and Spanish font. By the 3d of April these had been complowly in- vosted by the troops, and during the night of the 8th and morning of the 9th they were, after a ehort but govore bombardmont, captured, and with them from 1,600 to 2,000 men, with 16 heavy guns, With ihe key to Mobile tuus secured, tha other works of importance, batterics Tracy and Huger, wore within casy reach, and on the ev@ine of the 11th they were evacuated, ‘On the 12th the troops were convoyed to the wort sido of the city for the purpose of an attack, and theTiect gained « suitable postion for performing tts share of this work; but it was soon ascertained that the oty was at tho merey of our arms, all the rema ning defences having been abandoned. A formal surrender waa therefore de- manded by Goneral Granger and Acting Kear Admiral Thatcher, Which was complied with, and possession was taken of the city. The works which environe1 biobilo wero of immense strength ani extent. Nearly 400 guns = captured, some of them new and of the heaviest cal- Tho rebel army, on eyactating the cily, rotreated up the Tombigbce, Preparations to follow and capture thom were far advanced, when, on the 4th of “lay, pro- positions were received from Commander Farrand,’ com- manding the rebel naval forces in the waters of Alabarna, to surrender ail the vessels, Officers, nen and property yot alloat and uader blockade on the Tombigbee. The basis of the term; of surrender b.ing the same as those of fienorai Lee, were accepted. On tho 10th of May the formal surrender took place, and the insurgent bavy coased to be an organization, Four vessels wore surren- dored, and 112 oiticers, 286 men and 24 marines were pa- roled and permitted to return to their homes. Sabine Pass and Galveston, the only remaining rebel fortified points on the Gulf coast, soon cap tulated, ‘The forts at the first-named placed were evacuated on the ‘26th of May, and the commandant of the defences of Galveston gave assurances that there would be no op- position to the occupancy of that piace by the navy. On the 24 of June Galveston was surrendercd, and the supremacy of tue government was once more established on the entire coust, from Maine to and inciuding Texas YEDUCTION OF THE KAVA! PORCR—THE EQU.DRON, Immediately after the fail of Fort Fisher and the enp- ture of Wilmington, measures were tuken for the gradual reduction of the neval forces employed on the duties of blockade. The recovery of Charleston, Mobile and Gal- veston justified a suil further diminution, and as these events successively occurred, mensures were promptly taken to reduce Lhe squadrons and economize exponses, On the 24th of February letters were addrossed to Admi- rals Porter, Dahlgren, *tribling and Thatcher, meter | them that the department was of opinion that the fal Fort Fisher and the possession of Charlestun would enab!e the dopartinent to reduce navalexpenses. They Were direc ied therefory to send north such purchased vo-aelg We needed extensive repairs, and aiso any naval stores U Were not required. A careful scrutiny of requisitions was onjoine? befor: and commandersof squad- rons were informed that they would be expected to use ble exortion and care to duninish the expenses every of their respective commands. About the 1st of May orders were issued to further re- duce the squadrons in our domestic waters one-half. Near the close of that month # further diminution was directed, so that the entire force retained in commission should not exceed 100 vessels. In the carly part of July another and still farther reduction ieiamae, leaving but 30 steamers, which, with receiving ips, Composed Fs entive blockading squadrons on the Avantic and (he Gulf, On the 21st of July the Potomac flotilla, which, under Commander F. A, Mag gm ee Parker, had rendered active service, quitted himself with energy at the subsequently at Cairo, was intrusted with the duty of disposing of the vessels and closing up the affairs of thas igen adit‘ in sok © North uth Atiantic were com: soli into one, as the Auantic NEW..YORK HERALD, FRIDAY, DECEMBEE 8, assigned to the Northern leases the Sabine is a8 xu apprentice ship, the BAe) Bay ter the Siasachusoats and South Carolina aro stiil continued es supply ships for the equadrons on the coast; the Con stitution, Macedontan and several others are connected with the Naval Academy; and twenty vessels are used at the navy yards as receiving ships tenders; a0 that there are aitually im commission at this time, at hoine ter, abould’ the exigencioa of tho eerice parmt, will bo per, i oxi joa eervice will be a terenee rs ‘no January, while Rear Admiral Porter was engaged before Wilmington, affairs on James river assumed such an attitude, involving the welfare and acourity of the army by a demonstration ov the part of the robels with their armored rams from Kichmond, that it was deemed important to snd thither immediately an officer of ability and experience. Vice Admiral Farragut, then in Wash- ington, was selected for this special duty, and on the 24th of Lat month proceeded to James river for that purpose, ‘The threatening demonstration below Richmond was not long maintained, and the ocfasion haying passed, Vico Admiral Farragut was relieved from this special service ore ‘2d of February. ner specia) squadron of v ', Consisting of the Vander. bilt, To Powhatan and the turreted iron-ciad Monadnock, left Hampton Roads on the 2d of November, under the command of Commodore John Rodgers, des- tined to reinforce the squadron in the Pacific. In withdrawi large naval force from active service, in disposing of the vessels, in discharging or detailing to other duties their officers and crews, in making provision for a large surplus of ordnance, ammunition and stores, great labor has of course devoived upon the mapertaness ‘and its bureaus. Some idea may be formed of the .ex- tent of that labor, from the fact that there were in the several blockading squadrons in January last, exclusive pow but 29 vacecla, remaining on dhe aca carrying 310 ow but ve on ing 210 pe exclusive of howitzers, “Dispoeition has besa tnado of all tho others, Some of the vessels are laid up in ordinary, some with their crews aro on foreign service, rtd pari) in Melis Jo edi er were actively are now employed in peaceful ocoupation. As soon as our domestic troubles were overcome the to our interests ity ol ndins abroad tho re-establishiny the foreign squadrons which been suspended. e European, the Brazil and the East India squadrons have been organ! anow w) ag econom}- cal a scale as is consistent with their efficiency, the inte- Tests of commerce and # proper regard for our position ag a nation, These squadrons, with another which is seon to be put in operation in the West Ind'es, and the Pacific squad- ron, which has never been discontinued, are considered sufficient for the encouragement and protection of our countrymen engepod in legitimate commercial pursuits, and for upholding our flag abroad. Some modifivations of the limits of the respective squadrons, and the substitution of stoamers for sailin, vessels, will infuse more vigor into the and it is designod that there shall hereafter be greater activity and vigilance in their operations. ‘The number of veesals and crews on foreign service will not be greatly increased over thoso of former years, while the number of guns will be less; yet the superiority of steam over sails for naval war vessels, and the improvement and new patterns of ordnance will hereafter give our force abroad greatiy,augmented officiency and power. ‘The European squadron is commanded by Rear Ad- miral 1, M. Goldsborough, and consists of the following vessels:—The Colorndo, Koarsarge, Ticonderoga, Frolio, Ino and Guard, to which ‘bo Canandaigua will shortly bo added. The field of cperation of this squadron, besides the coast of Europe and the Mediterrancan, will com- prs) Madeira, the Ganaries apd the African coast us far ast St. Paul de Loando. The Brazil squacron is commanded by Acting Rear Ad- miral 8. W. Godon, who has ten vessels on that station, viz:—The Susquehanna, Brooklyn, Juninta, Shamokin, Nipsic, Shawmut, Kansas, Wasp, Supply and Onward. Besides the eastern coast of South America, this squad- ron wall cruise on the coast of Africa from Cape Town to St. Paul de Loando, ‘The East India squadron consists at present of four veasols—tho Hartford, Wyoming, Wachusett and Relief, The Shenandoah will be shortly added to this number, This Le igen is commanded by Aoting Kear Admiral H. H. Bell, who sailed from New York in his flagship, the Hartford, m August, and has probably already reached his etation. ‘The Pacific squadron remains in command of Acting Rear Admiral George F. Pearson, and comprises eleven vessels, viz: the Lancaster, Powhatan, Saranac, Su- wanoe, Mohongo, Wateree, Saginaw, St. Mary's, Cyane, Nyack’ and Tuscarora, and'two storeships, the jonin and Faralloncs, Some vessols fant: to tho Paeific (in- cluctng two of the iron-clads) will be laid up in the har- bor of San Francisco, ready fer ayy emergoncy that may arise. ‘The oxtensive limits of this squadron, embracing the whole western coast of North and south America, with tho islands of the Pacific; the. rapidly increasing popula- tion of the States and the growig and expanding com- merve and vast interests involved, render it advisable that the naval force of the Unto shouid be largely rein- forced in that quarter. Considerable addition to the number of vessels will therofore be ed at an early day to make a division But few vessels, and they on merely vem, hove as yot been omployed in the West Connecticut, the Kansas, the i}: Soto, ond nearly all the veasels which have been sent 10 the coast of Brazil, have visited some of the more important points, particularly in tho island of St. Domixgo, and ¢:ven atiention to American interest there, Li proposed to revive tho ‘Weat India squadron to cruts+ in tho» whore wo have so large a trade, and where; ow: the proximity: of the isiands to our shores, ii 1s essuntial that we should Cultivate friendly relatio: Commodore James S. Pal- mer hes beon designated to command tho squadron, having for his flagship the !hode Ir'and. In addition to the De now on that ciation, it is to send the Swatara, Monongahela, Hlorite, Augusta, Shamrock, Ashuelot and Monosacy, making a squadron of nine ‘vessels, ‘MIR NAVAL POROR. ‘When hostilition against tho government were com- moncod in the spring of 1861, and the ports on our South- ern coast were ordered to be ciosed under the form of in- ternati blockade, Instead of the municipal form of an sours, Jabor, edie te pearance and he owe pong suddenly avd unexpec' upon ¢ jepart- ment were immonsoly increased. To creato and organize a navy such as tho order for the Diockade required would have been at any time an im- mense undertaking, but the task was ly more oner- 8 when the country, jong interval of peaco, ‘wos beginning to be rent by civil convulsions. In this condition of affirs, with the uavy reduced during fiity years of peace to alow standard of efficiency, without experience orprecodent to guide the application ‘0! modern nventions to war pi with restricted and wholly insufficient navy yards for ‘he construction and repair of veasela, and without any adequate establish. ment for the stapendous work before it, the department was compelled to fool its way and pross on its work at the very time when a duty was imposed upoa it which a nation fuliy prepared and fornished with abundant ships and mon and material would have found difficulty in performing. But the resources of the country woro equal to the emergency. Witn only limited means at the command of the department to begin with, the navy became suddenly an immense power. An unrelaxing Diockade was maintained for piocd Hy ie from the capes of the Chosapeake to the Rio le, while a flotilla of gunboats, protecting and aiding the army in its move- ments, penetrated und patrolled our rivers, through an internal navigation almost continental, from the Poto- ma: to the Mixsissippl. Ai‘ter the captore of Forts Hattoras and Clark, in Au- gust, 1861, port after port was wrested from the insur- gents, until the flag of tne Union was again restored in every harbor and along our entiro ‘and the rebel- lion eventually wholly suppressed. Cotncident with these operations afipat the department: had its attention also actively engaged in developing the ingenuity, eki!l and resources of the country, in the con- struction of new classes of versela, in the intraduction of new descriptions of ordnance, torpedoes and projectile: im experiments in steam and in the improvement ol Beam machinery. Although compelled to encounter op- porition in all its forma, the departmont has been unre- Mitting in ite efforts, and in almost every jostance has met with a generous response from Congress and the country. Three hundred and twenty-two officers traitorously abandoned the service to which they had dedicated their lives, proved false to the flag which they had sworn to support and to the government which bad confided in their honor and relied ongsheir fidolity to sustain it in conflict and peril, The embarrassment caused by these desertions in the moment of trial was temporary. Bet- ter men from the merchant marine, educated and vastly wore efficient, promptly volunteered their services, in many instances at great pecuniary sacrifice, to fight the battles of the Union. About seven thor five hun- dred of these gallant and generous spirits have, aftor examination, received appointments and been employed in the navy. Schools wore established to intrict and perfect them in the rodiments of gunnery and nautical routine; and it is due to them to say that they have acquitted themselves with credit and served with zeal and fidelity, The intercourse between these volunteer officers and the officers of the reguiar navy has been productive of mutual good will and ro- It will, I trust, lead to Insting personal friend. ips and insure endurmg intimacy between the com- mereial and 1 service, Most of the volunteer officers have received an honorable dit nd returned to their peaceful professtonal pursuits, I take this occacion to renew my annual suggestion, that some of the most distinguished of those horoie and loyal mon, of admitted capability and morit, who have served the country so faithfully and so well, be added to the navy after an examination by the board of officers appointed for that arpese, Puc! addition to the navy, of brave and intelligent reprosentatives from the commercial marive, will be n fittiwg and honorable ition of the services ofa r forward in a perio’ body of tan who came allan of national p-ril to sustain the cause of their country. From 7,600 men in service at the commencement of the rebellion, the number was increased to 61,500 at iis close, In addition to these the aggregate of artisans and Inborérs employed in the navy yards was 16,580, in- stead of 3,844 previously in the pay ef the government. ‘This is exclusive of those employed in the private ship yards and establishments, under contracts, constituting an almost equal aggregate number. 208 vessels have ng aailing power, bare been ul - government during my administration of Eo eas Bre is cove ae 81, and of there there have been bold 840 vessels, {0 which the government ved $6,021,800. it de. z i Hi ie i 2. i i i f insurrection and waging war upon the Union. Fach of these Buropean neatrais had treatios of amity, and was in friendly official and cominercial in:ergourse with the govornment of the United States, while with tue rebels, who were without a recognized flag or nationality, they had neither treaties nor official relations. The United States bad a navy which commanded respect, aad 2 com- merce that covered every wea, while the rebels had neither navy nor commerce to be affected by neutral ex- clusions and restrictions, Gonsequently this aetion of the neutral league operated, on the one hand, to injure aud embarrass a friendly government that was cultiva- ting and practising peaceful and friendly relations with every nation; and, onthe other hand, to give counte- nance and encouragement to rebels envaged in a cause- loss insurrection subvert the most beneficent govern- or ded from the ports of the great mari ‘irqually excl 0 mari- tue Powers by this assumed neutrality, the difficuity of maintaining éven @ limited naval force abroad was greatly i Tho withdrawal of our squadrons loft our uy commerce exposed to the mpeecesioos of semi-piratical cruisers, which were built, armed, manned and sent out to plunder and destroy our mer- chantmen trom the shores of neutral Rai ad To these aggravated wrongs we were compelled, in the great emer- gency which existed, to submit; for under no um stanees would the Department the oF per- mit its efficiency to be impaired. ‘Tho sup jon of the rebellion enables us to ro-estab- lish aqua ns ‘and to display the flag of the Union in foreign ports, Our meon-of-war, released from the blockade, will soon be found in evory sea, pre- rod to ascert. American ‘and protect American \Lerests. Euro) noutrality, now that the insurrection is sup- Z wo toaaer donles to our nati vessels those supplies and courtesies which were our misfortune. jonal refused in the days No rebel rover, built in neutral fee jension vn the ance of the armed vessels of republic; and ressed we receive , hospitality and internatio! ears, excluded eubh abi mg, ee, roars excl our public ships, w' ey’ ly Meastod on elevating te rebels to be a dist belligerent Powor. We had, in 1860, five squadrons on foreign stations, bering 31 vessels, 445 guns. At tho present ine we have on the sevoral abroad 36 vessels, mounting 347 guns, and carrying 66 howitzers. Intime of ene our naval force should be actively em- ployed in visiting every commercial port whore American capital is employed, and there are fow available points on the globe which American enterprise has not pew and reached. But commerce needs protection, and our squadeous and public yeasels in commission must not bo inactive. Ono or more of our naval vetsls ought annu- ally to display tho flag of the Union in evory port where our ships nay trade, The comuverce and the navy of a lo have a common identity bo ‘aro inseparabl> com- panions, Each is necessary for the other, and both aro essential to national prosperity and strength. Wherover our morchant ships may be employed, there should be within convenient proximity a naval force to protect them and make known ournationa! power. Such are the energy and enterprise of ourcountrymen. that they wil, now that tho war liag closed, compete for the trade and commerce of the world, provided the government porforms its duty in fostering and protecting their interests, Besides guarding the chaunels titherto occupied and explored, it would be woll that examinations be made for new ave- nues of trade, In connection with this subject, I would gnggoat ths importance of of a more thorough survey and exploration of the principal istands in the fie Goean, and that the departmont have authority to carry this sug- gestion into effect. Following the tracks of commerce, and visiting every navigable portion of the globe, the intellizent officers of the navy aro capable, from their position and opportu- nities, of nequiring and commuyn'cating a vast amount of useful information, thoreby benetiting commeros, and, by continual add#ons to the stores of knowledge, pro- moting the welfare of the country and of mankind. ‘Where are circumstances, which render it nocessary that a commercial and naval people should have coating sta- tions and ports for supplica at one or more important points on these scas and oceans where there are im- portant interests to be protected, or naval power is to be maintained, Steamers cannot carry tho same amount of supplies as the sailing veasels of former days, ang tho coal which is indispensable to their efficiency must, par- ticularly in time of war, bo furmshed or obtainable at brief intervals, and in the immediate vicinity of their cruleing groonds. A prudent regard for our futuro in- torests and welfare would corm to dictate the expediency of securing some eligible locations for tho purpose in. dicated, REREL ORUISERS. Information reached the department in May that the iron-clad ram Stonewall, formidsbio vessel, built in France, had arrived in Havuna, This vessel had been con‘Juonally sold to Deamar, but, not proving satisfac- tory to that government, sho was purchased by the reb- .els. Somedifficulty in procuring armament and a crew caused a teinporary slight embarrassment ‘in her move> ments, but she was s00n met by the English steamer City of Richmond off tho coast of’ France, and her arma- ment, which was made in England, with supplies for cruise and an English crew, were transferred te the Stonewall. She romained for é short lume at Forrol, whero she Was watched by the Niagara and Sacrament and, leaving that ples, she did “not reach Havana until after the downfail the rebel orgunisation. Liko other rebel cruisers which had plundered our commerce, the Stonowall was without a port, Acting Rear Admiral Godon, who had received orders to command on the Brazil Loiae and was on tho point Of sailing, was directed to proc ed immediately, with force hastily colleoted and placed under his command, in search of the Stonewall, which, it was undorstood, de- ned to appear on our coast, eailed from Hampton Toes on nig Toth oF May, and arrived off Havana cathe 26th, having in his command tho Susquehanna, Chippo- wa, Monticello, Fahkee, and two turretted v the Monadnoek and Canonicus. Shortly aftor his arrival tho Stonowall was delivered over to the Spanish authorities by her commander, and our government was advised that Spain would place her at the disposal of the United States. It being Copngeny f for Acting Rear Admiral Godon to remain longor on this special duty, he left Ha- vana Juno 6, returned to Hampton Roads on tho {2th, and on the Zist proceeded, in pursuance to previous or- ders, to Brazil. ‘The English screw steamer Sea King, built in Glasgow in 1863, early attracted the attention of our officials in England as one of tho class of rovers whioh, like tho Florida and Georgia, was destined to on American commerce, But the English authorities pro- fessed to be incapable of detecting anything wrong in this vessel, and sho finally sailed from London on the 8th of October, 1864, with clearauce for Bombay. On the following day the steamor Laurel sailed fro. Liverpool with officors, men and pao wont to Madeira The Sea King soon ‘Madiora and aignalicd to the Laurel, when the two vessels went toa barren island in tho vicinity, and on tho 17th of Octobor a transfor of offi- cers, men and guns took ; the name of the pirate was changed, and thence! became known as the Shenandoah. J. I. Waddell, a renegade American naval officer, assumed the command and proceeded at once on 8 piratical cruise. ‘An official communication of the 18th of Ootobor in formed the department that the crew of the Sea King, ‘ag woll aa that of the Laurel, were all British subjects, that many of them belonged to the Royal Ni reserve, and that some forty or fifty of the Alabama's mon wore among them. Throughout the whole period of the rebellion these exhibitions of the manner in which the English authori- ties exercised neutrality wero witnessed. On ono occa- sion two persons scereted themselves on tho United States steamer Tuscarora at Queenstown, with a view, it was suspected, of entering pur service, and the British government was on that occasion greatly exercised lest some violation of neutrality or breach of the Foreign Enltstment act had taken place which would work harm to the rebels, A Jess anxious solijcitudo appear# 40 have ‘been entertained of breach of noutrality when wholo crews were enlisted for the Shenandoah and other rebel piratical cruisers which sallied forth to plun- der American commerce. Before leaving the Atlap- tic the Shenandoah succeeded in dostroying several veaocla, and was next heard of In Metbourne, Australia, where she was received aud entertained with great hos- pitality, and furnished with ample supplies and repairs for the long cruise upon which sho was about to entor. On the 8th of February she is reported to have loft Mei- bourne, and was next heard of in the North I’acific Ocean and the Sea of Otrecht, where she attacked and captured twenty-nme unarmed whaleahips, of which twenty-five were destroyed and four were bonded. Although notified by some of hisgvictims that the rebel armies had sur- ropdered and that the rebellion was supproesed, Waddell gave no heed to the intelligence, but continued his work of destruction until four months after the fall of Rich- mond, when he .was advised by an English vessel that ‘Lee was on parole and Davis a prisoner. ‘The English government, in the exercise of all that neutral tonderness and care which it had manifested for the rebels from the beginning of tho insurrection, when finally compelled to admit the extinguishment of the rebellion, made special reservation to protect the rebel piratical cruisers, and particularly the Shenandoah, which was an outlaw, without country or home other than Engiand, after the prostration of the rebel organt- zation. Warned by neutral England, whose subjects constituted almost her entire crew, that the organized insurrection was annihilated, the Shenandoah had no alternative but to seek again the shelter and protection of that neutral power where she was built, and from which she was armed and manned. Under the name of Sea King she had cleared and sailed os an English vessel, with an English flag and an English crew, aud as late ag February she stood on the books at the Register’s office of British shipping in her original name, nd in the name of her original owners. Such may have boen the case when the pirate was warned that he had not the pre- text of-a rebel organization to boften his crime, and that he was an outlaw, Of all hor captures not one was ever cent in for adjudication, and I am not aware that she ever entered the port of any country but England. It was fitting, therefore, that she should return jor refuge to the country of her origin. The Sea King, aling the Shenapdoah, entored tho Mersey on the of November, and her pirate captain in « formal letter to the English mAnistor, surrendered the vessel to the English government. RSLARGRMENT OF THR NAVY YANDe. Our navy yards afe all of them of limited area, and wholly insufficient fos our present navy. Not ono of a presents ba fit ; oF eye ae facili- jes for m | oul a ray jclent man- her mare than esse at a Soe oFeascls whieh 1b to r months are often detained for ape eg er ye made, Syms suettingest be forged, or steam. ine. sofae! ona moderate ca nor, with the exception of Mare in California, and Norfotk, have 1 oxpenditure and time for thelr completion, the eountry nebeseapo mortidcation and reverses, wad gerious disasters. ‘The most formidedie iron-clads are those of the class of the Pasesvopawny- ‘The turreis of these vessels, which are fifteen inches in thickness, end the machinery, which is of @ power to drive them cioven knots an hour, is plain and of moderate size, and yet they cannot be constructed and sent to sea in three years. itis of all work out of that ordinary routine for which our estab- lishments, public and private, are exclusively designed, ‘The imu indis;casable and traly economical remedy for all this disadvaniage is to enlarge the navy ards at Boston and New York, to complete the yard at Mare Island, on the Pacific, rebuild those of Norfolk and Pensacola, and sell tho present restricted grounds at Philadelphia after establishing @ yard of sufficient ca- pacity at League Island or some other proper location on tbe Delaware With these extensions and improvements, end @ proper establishment at some ya upon the Westorn waters, our naval position will be so strength- ened as to constitute an additional eafeguard against ex- war. any recommendation in regard to the yard at Kittery, becauge there aro serious objections to it station on account of its proximity to the green which renders public property thero insecure. Should CBee’ be decided to improve the station as uisition of Seavy’s Island, Diet of the Burean of Yards But the value ment, without attompting impossibilities, directed its en- ergies to accomplish what was practicabls. After procuring a supply of vessels for the blockade, by purchase and construction, the next pressing want was an iron-clad or armored ship, capable of operating in oar ‘watérs and going in all weathers from port to port. Ona public appeal to the mechanical ingenuity of our coun- po (acm this want was supplied by the Monitor, a turret- vessel, which, a8 soon as completed, vindicated its capability, and the model thes projected’ has been adopt- ed and extensively copied abroad. This class of veesels stands as the undoubted and acknowledged best defonco of our shore agatnst any naval armament at prosent in existence, Different types of turreted vessels—all of them improvements in some respects on the inal model—have been constructed. Several of the light draught vessels of this class, drawing but eight feet of water, completed sinoo the’ adjournment of Congress, have gono from Boston and other points to Philadelphia and Hampton Roads; and one has made a voyage to Charleston, 8, C., whero sho is stationed and per:orms with entiro satisfaction all the duties required of her. The double-enders, veesele originating in the peculiar necossities of this war-—designed to run head or stern first—were intended for operations in the rivers, bayous and tuner waters that pervade our Southern coast, where 1 wag important to*avoid the difficulty, delay and risk of turning round in narrow channels or under fire. When these arrangemonts had been made, ‘and the vessels immediately required were woll under Ling 80 not tode interferod with or delayed by additior work the Dopartinent commenced the construction of a sups- rior class of Lev ig yh size and power sufficient to in- sure high speed. most forward of these vessels could not be at sea until 1866. The delays and embar- rassmente which have been oxperienced demonstrate the. importance, if not absolute necessity, of eularging our principal yarda and tho need of a suitablo establishment for tho Construction of engines and haar Ge work, such as the Departmont for three years steadily urged upon the consideration of Congress. iy FACTLITINS FOR REPAIRING NAVAL VESSELS. The naval expenditures, which have been modorate for the work performed, are larger than they would otherwiso have been, in consequenco of ¢he insufficient, means and limited area of tno sevoral navy yards. With- out ferther provision in these respects the government must always depend, in a great dogree; on private estab- lishments for much of ite work. ‘This is not Creed able, perhaps, in tho construction of new hulls and en- fines,” ‘The ¢xperionce of the last four years bas taught ‘us the value and importance of effizient and reliable pri- vate ostablishments to sd the government in a great emergonoy. The ipfness: enorgy exhibited at gomo of these establishments haye beon wonderful and of invaluable sérvice. Until summoned to asslzt tho nt in the great tri: that was upon the ability, power and resources of these private - menta were not known nor appreciated. They gonerally responded with zeal and vigor to the calls of the Depart- ment, and their ability will, in all futuro wars, give reli- tole atrength to the country. In constructing new vessels and machinery, the gov- ernment can always have the benefit of wholesome com- | reecbven) at private lishments. In making its con- for new vessels and supervising thoir execution, the de it will be ablo to protect itself; but that cannot be the case as tho constant and often ox- tensive 8 weather which have beon in cannot contract, ‘oppor. tunitios for fraud and imposition in making ropairs are too many yiold to them. fork is often 80 rp that ‘stig! and imperfectly executed; disastrous delays tervene; sometimes the wif be skilfaily norsed by more extended and elaborate repairs than '. ‘Tive charge for matertals and labof must of course be, & considerable ‘at the discretion of those who make the repairs, an: it is not surprisi that they havo frequently beon exorbitan: " %, notwit ing all the vigilance and offorts that were exorcised to pro- wore the govern- cue all cases. aaron the inory nat we been con- straoted at private establishments, and they must con. tinue to be so constructed until the governmont shall con- clude to chang its policy. In the manufacture of hoavy shafting and machinery for our naval which are to cruize for months, and often for years itis important that we should have the most substantial work and the best materials, 60 that the - ment can ly reply on the strength and du: ity of its naval representatives, however remote from the country, apd the officers and crews should be enabled to foo! a 80! security, 80 far as human skill can impart it, bah joating homes which the government may 0. Py fallare in the motive power of 8 steamer when on a cemry repairs eae made, iss calamity against which Ceesary repairs can is a calamity every precaution should be taken. LAYING UP OF PIE IRON-CLADS, ‘Tho iron-clad vessels, so formidable in war, but un- suited for active service in peace, have been laid up, Loge Bed be brought forward at any time for active duty, should circumstances require. No provision having been made by Congress for a suitable dockyard or station in frosh water, where alone iron vessols can remain and be preserved, and there being neither room nor accommo- dations for them gt any of our present contracted yards, the pi hae nore the eer oa until —e shall make pfovision, of selecting a place the p Fresh water being an indispensable urpowe. requisite for the preservation of this class of vessois, and Di iaterlor location’ from fo seaboard being. simnosk equally indispensable for the pupae of safety, I hadno hesitation in selecting League deme: J these advantages in an eminent degree. The board of naval and scientific gentlemen ap; {in 1862, in pursuance of an act of Congress, on the suggestion of the De- partment, to solect a site for ivy yard for iron pur- Po: Syren ee aed aan eligible location for ® navy yard for general objects, were united in favor of League Island “so far as iron Veasols are concerned."’ There is probably no site to be found in the country presenting 80 circumstances: in its fayor for laying up our iron-clad fleet. Removed from the coast, and with fresh water, Island combines the advantages of both security preserva- tion—1 requisites for vessels of this deecrip- tion. Had Congress, three years since, authorized tho re- moval of the Navy Yard from its present contracted and wholly insuMeient limits in Philadelphia to League Toland, as recommended by the Department, other im- ant economic advantages would have been attained. cannot omit the opportunity of again advising the sab- stitntion of that site for the present circimseribed yard. at Philadelphia, and securing this location, provided it can be obtait forthe government, It must be borne in mind that, should Congress neglect to obtain it, the government wili be liable at any moment to be dispos- sessed, and compelled to remove its iron-clad fleet. On the Missiasippi river, where there is as yet no pub- He navy yard, the station at Mound City is retained, and the iron-ciads belonging to the Mississippi squadron have there their headquarters. Several vessels of this class which wore built at St. Louis and attached to the Weat Guli squadron, where they rendered good beim | particularly in the bay of Mobile, have been laid up ai Algiers, opposite New Orleans. Tn this connection I weuld respectfully invite attention to the report of the commission appointed under the joint resolution of Congress in June, 1 to “select tho most suitabte site for a navy yard or naval station on the Mississippi river, or upon one of its tributarica,’’ With- out intending to indicate any pretense aa to location, it is not to be doubted that fn future wars ,the yoasels, mac arma. ture of our 8! in the valley the material is so xpe few years has ited the capal ios of that section In producing | vessels aud machinery with rapidity. true f the naval force in ‘ume ot Spence will bo to keop our iron. clads iaid ap in Sree wastes in porfect ighting order. among e rincipal cgummerelal cltlea hie the thoro thooik bea dy ‘afloat sufficient to visit anbvalty, if necessary, every navigable port on the globe where our trade existe, ome interesting nn extrnord nary Tacs and statistics interesting and . concerning eae are ven bealthincss of tron-clads Ey # are given in the report of the Chief of ¢ and Sur The lace of it t# well Known, hi afew taches of their balls the water line, entire. ly submerged. It has been doubted under such Caran iens co tem to preserve tho of the men on and © main- tain the fighting material in wer- vioe. It is Dk, ‘an exami- ip entha, shows tat war frombone webeiy, thre was loss sickness on board on the same number of wooden ber pA Ay igh in somo In. Fagen rg the Sanne ‘| ganization botter adapted from Movember 25, 1864, to Apt! 1, 1866, « over four months, but four cases of sickness, @oldental injurica,)and of these two wore di whieh the patieuts bad suffered for tuuk, for # period of one hu: and sixty-five days prior to the 29th of May, 1865, there was but one case of @iseaso onboard. Other vessels exhibit equally remark. able resulis, and theconclusion is reached that mo wooden vowels in any squadron throughout the world can show an equal ipengaliy from disease. The facts and tables presented are worthy of careful study. ‘The number of midshipmen at tho Naval aul m! ipmen aval Acadern: pond bapa x Fol wy Page The present meth 2 select i Tespecis objectionable, Of the enli boys, those who Bompinie Tabetiere. selves to the and are nurtured in the navy, ovly three are permitted annually to go to the Academy, Few of the multitude of boys who have inclination an@ aptitude for the naval service can obtain the umportant advantage of a public education, Of those who resent themselves under the present system one-fi fail to pass a satisfactory pbyeioal, The same defects are more strikingly developed aftor ad- mission. Nearly thirty-three per cent fail the first and fiaally only about twenty-five cent of who enter the academy ment | yn Bl dimeee | this state ef Uhings, ney wants of the servi junior grades of officers havo been poorly supplied ‘the academy has only graduated a a yt about twenty-five Fagen A ion of the money appropriated for a nay ts thus’ Chichy imousequence of the defective ayeiots of baleat” peace Rerget omnis et = ak or eee yu elthoe the mental not paysical qualitice to Sh thom tet which open toall boys, under preper regulations, be » Such: ciency of the candidate, th, however, might be the scholar, whose powers not might hevertheless possess a montal and physical or- to the service, which would - ‘him a more eligible pupil and a better naval cer. Beis srrenmnent Pypemenitd an wong Honithind naval officers good mental ca; ‘and the best phyat- cal, peice These ony obtained mat the present system. Ihave elsewhore suggested the expdi- ' ency of appointing one-half of the midshipmen from the Congres- tices, and the remainder from , the aclection to be made from those whe enlisted sional possess both the physical and mental qualities that @ Shem for the position In isponsing with vessels propelled wholly by safle from the hst of regular men-of-war it has become neces- pg to instruct the futuro naval officer in the principles: and practice of steam enginory. A scpsrate dopartmens, having this object in view, has been established at the Naval Academy, under the man#zement and ditection of Chief Engineer William W. W. Wood, assisted by eight oth ‘are charged with the duty of teaching midsbhipmen not only the theory of the steam encine, but, as indicated in my last report, its actual manipala- tion. Sufficient exporiments and progress have al been made in running the engines of the vessels attac to the academy by the midshipmon to warrant the De- partment to persevere in its purpose of perfec! the education of the future lino officers, by making them competent, in addition to their other acquirements, te manage ard work the engine. Tho management of a man-of war in.a galo, on alee shore, in a narrow harbor, or the splendid manwuvres of battle by sailing vessels, have hitherto been the highest and proudest duties of a thorough paval officer, The skilful disposition of the sails, which was tho result of the best training of the old schoel, is no longer neces- sary, except as auxilliary to the new ‘motive Ad in which modern invention and science have intzoduced. The naval vessel is no longer dependent on the win nor is she at the mercy of currents; but the m power which propels and controls her movements is subject to the mind ‘and will of hi rects the o1 To confine himself to seamanship, out tho ability to manage the steam engine, will result it his taking a secondary position, as compared with that which the accomplished naval oflicer form: occupied. For the full devélopment and accomplishment of em object which can no longer be considered a doubtful ex- paired When the change iw ofued engineers will Be- qu en ‘ongineers the of enginos and ether come the designers constructors marine works, and the superinténdents of the mechani- cat employment which 8 navy by eteam has devtloped and may require. wilh constitute im reality a highly educated and solentific corps, and the line officers will have added to their duties the practical management of the éngines. LOCATION OF THE NAVAL ACADEMY, The Naval Academy, which at the beginning of the rebellion was ret to Nor Rhode Island, waa, in conformity with the act of retransferred to Annapolis in So r last. Binke, whe ‘are now authorized by law fivo hundred and sixty-six , with ® corresponding incroase of the aca- demic staff. There are but ntnety-#ix rooms in the pres ont quartors of the midshipmen, and each room is ia- tonded for two occu ‘The buildfhys are defective hastily and imper- must be ulttmatcly appropriated for the meres # cannot consierod wise or expedient to vostmont within the narrow and confined area which the Afinapolia, amount of diate selection of the best position that can be obtained before any greater expense shal! havo beon incurred ip large and costly edifices and other subtuntial Improve- mont The importance of procu at the beginning amd before making further ea attainable loca bie for the acadomy Is serious attention ef "There are several places on the shores of Bay where ample grounds can be procured at laces which combine all the required advantages, and which are relieved from the serious aud insurmouat- able {difficulties which attech to the Na ge’ location, ‘The government can there possess itself of ample = not only for Lge oo Se Say" equiv, ir creditable government, May require, and useful to the country, and ag eusturable as the 3 ponding more money in attempts to improve the limited recommend # new an area of at I rounds now occupied, I woul one that shall embrace, if ible, one ctronsand acres, which shail not be in tho Immodiate neighborhood fof any city, with Its temptations; w have the requisites of healthfulness, accessibility, ample water front and space for md veasols flees of boats; good anchorage, with suflicient dopth of water, and such proximity to the ocean as ci;cumatances: permut, yet inside the lines of permanent defence. The views of Congress and of the country indicate— wisely, in my opinion—a preference for this latitude, where a winter climate will allow outdoor exercise om board schoo! ships Doat sailing, mancruvr ng vow sels and other nautical instruction, a8 a proper location for a naval academy. Some th cea quirics have already been instituted with a view of am» certaining tho most eligibie locations on the Cheespeaie, the result of which is that there are sevoral sites whi to secure as soon as possible the refusal, at a price, of one or more eae ‘sites for a naval academy, embracing an area of not less than two thousand acres, PAY IN Tue NAVY. gery LL ya Pity di im that of workmen tn the public of the lawe