The New York Herald Newspaper, December 10, 1868, Page 8

8 THE NAVY. REPORT OF GIDEON WELLES. Navy DerarTMEnr, Dec. 1, 1863. ‘Bm—1 respectfully submit the annual report of the ‘Baw Department and of that branch of the public gervice during the past year. BXUiBIT OF THE NAVAL FORCH, ‘The number of vessels in squadron servico, as eruisers, storeships and returning 1s 42, carrying 411 guns—a reduction during the year of 14 vessels, carrying 96 guns. The numberof vessels of all de-' scriptions in use as cruisers, storeships, ships, tugs, Ac., is $1, carrying 693 guns—a reduc- tion from last year of 22 vessels, carrying 205 guna. ‘The total number of vessels borne upon the navy Mstds 206, carrying 1,743 guns—a reduction during ‘the year of 32 vessels, carrying 126 guns. The fol- NN xhibit the Stuer t Tee Cruising vessels tn equadron service. Vessels returning from squadrons... + Btoreships for squadrons. id lake service. Goprencice sy ppreniice oensee yeas Academy... Receiving ships. Quarters for oft and marine Tugs at n: Boats, ‘The following tuble indicates the vesae.s:— Iron-clad vessels. Screw steamers Paddle wheel Bailing vessels have taken place, ream sloops not completed. jne-of-battle ship? not completed Other vessels laid up, repairing, for sea and for sale. —_ Total number of vessels of all deserip- tuons in use, building, repairing, fitting for $e, &C....e...eeeee 1,743 ‘The vessels of the navy are classified a8 follows:— ‘Vessels of the frat rate—of 2,400 tons and UPWATMS. 2000-0006 veer ee 5 Vessels of the second rate—of 2,400 tons. . Vessels of the third rate—o! tons.. svt ‘Vessels of the four: b The organization of and in use at Naval jeers at League Isiand x avy yards and statious, powd f “600 ‘to 1,200 th’raie—under 600 tons 68 EB SQUADRONS, f the squadrons remaing essen- tially the sanie as wien | mademy Jast annuel report, Some changes of commanding officers and of vessels No, Guns. 856 Guns, 662 483 414 sé 1,743 of the Guns, 129 93) 19% Ait 1,743 and the force of each squadron has, in consequence of thé limited nuraber of seamen al- lowed by the act of i7th of June last, been necessa- oe force on foret been reduced. t the commencement of the rebellion the navat Stations was recalled to assist in ep- tablishing and entoreing the blockade, le: the commerce and persons of our citi: exposed. On the restoration of pe immediately took measi rous which had been bi ing ns abroac great! the departme: 8 to re-establish the squad. sken up, and acourse ective cralsing was ordered by which the flag, long withdrawn, might be promptly exhibited in every mportant port where the commerce of oar ‘country had penetrated ciently and satisiactori Tiis order has been eff- zt ed into effect by tho @istinguished naval officers selected for servics on foreign stavions, and at no previous riod in our Bistory have the power and prestige of the American. avy and name been more honored and respected, df our commerce aud shipping interests bave not recovered from the depression cousequent upon the ‘war, and are not as expanded a no inattention or neglect on itis from the navy.’ Since the squadrons Were reorganized our couatry- men and their interests al Jantly guarded and provected on every sea ‘oad have been as vigi- ad at every accessible point as at any former period. It has been the purpose of the department to have on ormore of our naval vessels visit annually rend commercial port where American capital ts em- ployed, and (bata inan-of-war should not be long absent from the vicinity of every merchant ship that migat need assistance or protection, "Vo accomplish this purpose and meet the require- ments of the department great activity and vigi lance Were necessary with our liunited navy, nuwoering in men and ghips less than one-fourth the effective ree Of any One of the principal maritime Powers, ¥ el 4 the work has been performed with energy aud seal and the views of the Departinent well sustained, zl OFEAN SQUADRON, ‘artagut, who was in command of G. he squadron at the Gaie of my last report, returned to New York ip the fag ship on the luth of Novem- ber, leaving the Commodore A. M. uadron im temporary charge of The Franklin is to re- turn with Rear Admiral William Radfords@who has been designated Franklin (Qagship) Ticonderoga. Swatara..... The Cananda States from the aquadron. Admira! Fa lorecco. Visited was equally flattering with bis reception the res be oficials selves friendly It is & gratin movements of no instance lia ference in any command the squadron, composed of the fllowing vesseis:-< 89 Frolic.......... i Guard (storeshipp.. 0 rhinent and peo} honoring that igns and other hy rowers have availed them- compliment im represents, on to remark, while apting the officer aud his squadre appeal been made f Inaamner to relieve Orext istin hich is Guns. 5 3 on her way to the United at has visited during the year tol. Jand, Belgium, England, Scotland, Spain, italy, Austria, Prussia, His reception in every pi. nee, Portugal Turkey and po which he has ceding year in.tte North of Europe, and cannot less acceptabie to the the United States. guished officer mn, that in inter- aid to our countrymen scattered along thé shores where the flag bas been exhibited, nor fas any application been made Thre righis, been carried are entitied anc stipulations and i ed and m He left Lasbon in to aasert and Hurope the rights of Ar citizens are respected, and whe ¢ navy the privi whieh are guaranteed by treaty jatloual law have been assert- vindicate their 1867, where phe usual courtesies had been exchanged aad where, by invi- tation, Adfnira’ agut, with many 0: 18d olfic had been received by the King and Qu ga! and Don Fern coasts of Spala, tar, Carthagen and Spezia, at ‘Se ‘ance and Italy, iduching at Gibral- Manon, Toulon, Viilefranche h of which places he was ihe re- cipient of many courtesies and attentions, civil and naval. he Un the was cordially we Coasort and other high oflcisis. At Port Mahon. of an excursion to Madrid med by the Queen and Aug «rrived in December, hia reception Was peculiarly gravilying. Bach village in Minorca through wliedl he passed was profuse ip, compliments, and La many instances sent ous depu- tats to mect him at a descendant of one of their ancient families, his father having been a native of and emigrant from Ciudadeis in that tsland, When the Frank ‘as at Spezia Adcaural Ferra Bul Visited Florence, Venice and Genoa, He dined Yi » his Mayerty Vietor Bmanuel and wi distinguished officials, r countries, at ek rurh Spezia he proceeded to Pp p y ‘avigs, While ou @ visit to Rome Admiral Parragut was received by Une frie Minister and presented fo his Hicitness the Pape. Naples April @ and touching at Meseina and Syracuse arnved at Multa on the 12th, Ti deroga aud departura on the isth was unesoa! honors. ‘The squad fon was Vice-Admiral Paget, Majesty 9 fleet in the tterrapean, in hus flagship, the Caie donta, whiet a close alongsid: crews i ning the rigging “Hail Columbia.” passed suce When the the band pi was re Admiral Farragut returned t of April, and alver taking He arrived at Fine due all had n guns. rew of the Franklin who Holland, remained’ unt cers he visited , ot Brusre ayes’ be en Eswen, and procsed Wherw he lett the Fr hort J uly. moan, ent. passing On this tour Abe anihorives Anspec Anterast to na On the 10 rlaliy by t ! Britannic Majesty's phir mira! Parragut distinguished p ‘he Prince of W Pedinburg visited tty ith Admiral Farrag Queen at Orborn« rathorities and others Franklin, and on the 1 cheering, and th The other vessels of ug stuiliar courtesi Paget hoisted i fired # salate of seve 8 were acknowledged | nned the yar and dined with b apanied by the was Tecetved on board the F Lrussels he ed from thence to Sou hrough Landon, York, J rejolved the V'raniJin in weived every attention from f the respective places visited, and kyards aud other establishinoats of on on tie 2th to where he Ws oft I Newoastie, ranklin was visited oft. ‘inburg, Captain of her atew, and om the 12th Ad- cers dined witheh! inglavd being pr r, the Dui On the ty the porate of Bouthampton visited the rotn Oowes for tyre, at Which place sbe arrived op the ain of 4 uguat, J i « f ® € Here Admiral Farragut translerres ni nd proceeded bo « oll } for Sioyroa. ithe oth of August, and m the Sultan wachored in the sutinople, ou tbe Sth, fag to the tsb, we Juipaued by @ Jarge pumber OF oficerd yf \ue Lavy, he was received’ by’ bd The rear admiral comman‘ in the ip, | the United States steamer Mono: and two Nv by Dar Masons che galten. ad go pant oi flagebtp, — | ngahels, YORK HERALD, THURSDAY, DECEMBER 10, 1868—TRIPLE SHEET. snenge 9 0 Joke period, ban Jed to the recommenda- Bota iu the harbor of Se Thomas, | those Stata — Be | jueut day ‘on the of Egypt, then | limits of iis injury, The De oe Franklin \d Juno he was ‘Thomas, Santa Cruz, Petnt t from her moorings force The grounds have been enlarged during Deon detaieed pore ee Ee eae Pitre, ‘Bie a5 Gaayra, iepinwail Port au Waves, both chains alas frown, the year by ee of 8 portion of the farm on and bat fe known a9 berry Hill,” and @ conditional h i [ | ‘The act of June 17, 1868, limite the number of per- yaa authorized to be. inte the navy, inciud- and to 8,500, and DO more. which is actually below the maxi- mam which existed prior to the war, bas compelled the department to reduce the number of ap- prentices, A discontinuance of general en! being the | ship, Aa it was her, | was immediately on the of the act and on and native troops yp pe Te the officers and crew On | and have taken uch an exten! este, where oMcial calis were consequence of the death bag Ee Raced nited SI < asto the to put one of the ith, anchoredoff Gibraltar | the anticipated oe ad passed ane te a eats the males be tied, because y dee! ¥ @ polite, n Poy Se i |e orcs cocoon toys hs nna x | Pe ee Se omer | etn Sense wc ee ee 4 oul ave h cannot fail Bey eet aval Constructor Davison, comme: repara- | both the naval and commercial marine with a body far ag St. Paul de Loand uropean squadron have tara, She ioual which extraor- | on tat island. Instructions have from time to tine | tons for the Monongahela atioat, fires | of mariners of pasapanees. excellence, In pre- dinary oy ‘and entertainments were eyery- | been issued to the admiral in command to watch the attempt aa Bat on the foun of May a ests I have at very fully the and rocated. 7 progress of events, and be prepared at all umes to | effort was She was safely launched, and le neomed to De ord: ‘The prin points of the west coast of Africa as | afford necessary protection to our citizens. In pur | St. Croix on the 13th of June, ‘arriving at New York supply the government and country with 10 gud the neighboring | suance of these directions the Contoocook, De | the 29th, and was put out of comm! mn July §. seamen to man ourships, and Congress until the roups of islands which lie baa mate & LA the Foe shane, Fite Pencbecol Gelteias and On Hye, ‘13th of August Hes, Ras eh gn 4 Present ty was understood 1 al 18 ppproyed tae wa | Nipsic havi itferent visited ‘western coast America, “Object. familiar with a , Teturned to | waters, and some of them have remained there for | which two of the vessels of the South Pacific qi that tne naval changes which have on mnowesd Jett Lisbon February 6 and that port ain 2, Poppa apg ane at Porto Grande, | weeks successively. The naval officers in command | ron were logs to the service. The storeship Fre- Porto Praya, Gran rovia, Cape Palmas, El Coffee ana St. Thomas. Commander Jeffers reports | thorities. that the slave trade 1s entirely suspended. ‘The vessels of the squadron have, during ver in addition to a ‘mentioned, visited Valencia, | in securjng the release aud indemnity for their de- | bottom, aud a moment after the waters roiled im Tarragona, Barcelo! orn, Palermo, | tention 6f a part of the crew of the American whal- ice, Brindisi, | ing echooner Hanna’ Grant, who had been captured | Twenty-seven officers and men were drowned—three Candia, jarseliles, H: ‘Cherbourg, Brest, | on the peninsula of Paraguana and carried ag | officers, who were on shore, aud two seamen who Bordeaux, Pautiliac, Basque Roads, Cadiz, Ferrol, | prisoners to Coro, . At Curagoa Commodore Boggs | were rescued, being all that were saved. Hamburg, Bremerhaven, Antwerp, Plymouth and | learned of the release of the crew of the schooner, ‘The Wateree was thrown ashore, and left high and h Civita iio a Twenty’ Aonn, ep various ports on the Irish coast. ASTATIO SQUADRON. Rear Admiral Henry H. Bell, ‘who was in com- | Minister, visiced Caracas and had an interview with | expense of any sucayt launch her would have mand of this squadron at the date of my last report, | the vice president and other authorities of tue repub- | exceeded the value. ‘was drowned at Osaka on the 1ith of January by the | lic. Tne Saco, Commander Wilson, took on board | cumstances it was deemed for the best interests of 3 s5 2 = | 4 have exercised prudence, observed neutrality aud | donta had, in consequence of the prevalence of yel | gether with the fact of greater inducements to en- exchanged tue customary courtesies with the au- | low fever at Call Deen moved up to Arica, and age th cles pursuits, are diminishing the class of was there with the Waterce quiety r at anchor, a Men on which we have hitherto de- aera em bari ve tty ster fle the page) a aeite fas presen Kye “he ensealnt of Be aes Oe as of ficlency, itis with our sea e Fredonia 01 elt e the year, to Venezu co-operat led, leaving 0) wee Ae. ncdeae’ 3 3 5 such power as to break her to fragments, but he very properly proceeded to uayra and in | dry, about 600 yards from high water mark. She was company with Mr, Stiliwell, the United States | badly stramed, and her tien was such that the tho vessel. , Under these cir- 5 I unable to »_parpelte reasons for including upsetting of a boat in which he was crossing the | at St. Thomas the master of the Hannah Grant, and | the government to sell her, and the maceasary direc- | naval apprentices within the established number of bar. The command devolved upon Commodore | alter restoring him to bis position at LOR Pro~ ona were accordingly given. But ® single man | persons employed in the naval sérvice, and the effect John R. Goldsborough, as senior officer, until the | ceeded to Venezuela. Tne question at that stage be- lost from the vessel—a seaman in charge of the | must necessarty be to limit their number, and check arrival of Rear Adunral 8. 0. Rowan, who sailed | came one of indemnity, subject to adjustment | captain’s gig, on the beach, who was carried out to from New York in the Piscataqua on tne 16th of De | through other channels, No further occasion for | sea by the waves. cember, and assumed command at Singapore on the | naval action was therefore necessary and the force Rear Admiral Turner was at Callao in his flagship, 18th of April. ‘The squadron is composed of $he following vee In June a diapiay of naval force in the gulf was | @ matter of security steamed out of arbor until a system so anspiciously commenced, if it does not wholly defeat the great object intended. SURVEY OF THE NOKTH PACIFIO. In view of the rapidly increasing intercourse be- was withdrawn. the Powhatan, when this calamity ocgurred, and as tween Western America and Asia, of the growing sels:— considered necessary in consequence of reporta that | the nextmorning. On learning of the digastrous re- | commerce of the Pacific States, and of the * Guns, Guns, | a hostile expedition against Mexico was concentrat- | sults of the earthquake at Arica he proceeded to that | important and various interests which are spring- Piscataqua (fag ship)..23 Unadilla. 5 | ing near New Orieans. No on for action, how- | point. The Powhatan, on application of the autio- g up in connection with our recent ex- Oneida. 8 Aroostool ‘e 6 | ever, manifested itself. rities of Peru, was permitted to convey Let ar tensive seanlsiiona de is important that a more com- Troquois. 6 Maumee. .8 BOUTH ALLANTIC SQUADRON, nurses, &c., for the relief of the thousands of va ete and systematic garvey should be made of Ashucio' 10 Idaho (store and hosp!- 'The South Atlantic squadron, under command of | at Arica. ‘the commanding oilicer of the Wi e North Pacific Ocean. ‘The muval vessels on the Monocacy. iho tal ship)............. 7 | Rear Admiral Charles H. Davis, is composed of tho also furnished such ald as he could to the desti station continue to perform some useful but neces- ‘The Shenandoah Is on her way home from this | foliowing vessels:— inhabitants with provisions from the ehip’s supp sarily Mmited and irregular surveys over that exten- squadron under orders issued June last. ‘The Guns, Guns, | The senior officer at Valparaiso promptly resp: sive and partially sxpiored field, but the period has Hartford arrived at New York august. Guerrlere (flagship)... « 3] to an foamed of the Chielan government arrived when something more etfective should be . 8 | placing the Tuscarora at the service of the autho! The United States Minister, Mr. Van Valkenburg, | Pawnee.... was of opinion thatour government should be re- | Quinnebaug.. w 6 presented by a strong naval force on the occasion of ‘Two vessels were ordered home itt consequence of | the sufferers along the ‘the opening of the ports of Osaka. and Hiogo. Rear | the reduction of the naval force by act of Congress. NAVY YARD FACILITIES, ‘Admiral Kell concurred tn this opinion and aggem- | The Huron arrived at New York in October and tue In the event of a war with any maritime power our died as many vessels of the squadron off Hic as | Shamokin is daily expected at Philadelphia. batiles are to be fought upon the sea, and not upon were available, including the Hartford, Troquols, ‘The continuation of the war between the allied | the 1and—by our tleets, not by our armies. No na- Monocacy, Arodstook, Oneida and Shenandogh. The | Powers and Paraguay has rendered it advisable to | tion of Burope can transport any considerable mili- latter veasel conveyed the United States Minister | keep some portion of the force within as convenient | tary force to our shores, butshould i be attempted ; Yokohama to consummate the terms of the | reach as practicable of military operations, Other | they would be met upon the ocean and there arrested treaty. No serious trouble was apprehended, but polnie however, within the lumits of the command | by our navy, if it is maintained in @ condition at all certain discontented factions were known to exist. | hi therefore, that the Uisplay of foreign | ceived attention and ample protection, The flag | as common prudence admonishes us to haye always ower would prove a wholesome restraint on tae | has been shown at Batia, Rio Janeiro, St. Catha- | ready to be put in commission. Our fioating bul- fre it was thought, bulent and disaffected. Agreeably to arrangements, Osaka and Hlogo were | Montevideo, Buenos Ayres aud other points on the receive attention; for, though peace now prevails, wielly Opened to foreigners on the 1st of January. | coast of South America; ‘The event was celebrated by the American and Brit- | rientes and other places on the La Plata, Parand aud | be war in the not remote future, for which a wise ish vessels at those places, their masthoads being | Paraguay rivers; and at Cape Town, Litule ¥ish Bay, and prudent government should dressed With the respective national flags and tie | Benguela, St. Paul de Leando, Ambriz, Kinsembo, pared. ‘Tycoon’s fag at te main. Every vessel simu!- Kadend, Malemba, Landsno, Black Point Bay aud We are also admonished by the experience of the done. Our iain Btates on the Pacitic, our increas- acy with the islands of that ocean, our gro’ je with China and Japan, and the vast and varied interests and plans of commercial enter- prise which are opening from the Indlan ocean to the islands on the north, demand of us our proper con- tribution ‘to the cause Of navigation and nautical science, Ina region where we have auch a length of coast line, such large possessions and such won- derfully expanding commerce, inviting tie enter- prise and capital of our citizens, the United States are interested beyond any other Power in giving security to the mariners who traverse that ocean. Attentiom 1s especially invited to Brooks or Mid- way Islands, discovered a few years ago and recently surveyed by order ofthis department. The charts of the survey represent two islands enclosed in a la- goon, forming a perfectly secure harbor, accessibic to vessels drawing less than twenty feet, and afford- ing an abundant supply of pure, fresh water. These isiands, which are uninhabited and unoccupled, are ties to convey provisions and other necessaries to coast. ave not been negiected, wut our interests, have re- | commensurate with our maritime ability, and such rines, San Carmen, Ihla Grande, Faikland islands, | warks, not less than our harbor fortifications, should Rosario, Curupaity, Cor- | and we hope and expect its continuance, there may be always pre- taneously fired a salute of twenty-one guns, which | Mayumba, on the southwest coast of Africa, past that among contending beiligerents thee rights { situated about midway between California and Kast- the Japanese promptly returned aboth places. ‘The presence of naval vessels has gencraily been | of neutrals are not always respected, and the best | ern Asia, on the track of the mail steantsiups, and Although the opening of these ports had been fea@ll that was necessary for t) harmonious, aifairs bore an aspect 80 unseitled that |. citizens and their proper, Rear Admiral Beil determined to delay his departure, | 4¥as deemed advisable to aad three days after sending’ despatches to the de-;4 Montevideo, On the 7th of February, in concert Unfortunate would be our condition should the partment announcing this Purpose he was drownedj§ with the commanders of other squadrons and at the country be suddenly invoived in hostilities with one yy the swamping of fis boat otf Osaka. "This melancholy event, wade tke more afflicting | rines were landed for the protection of loreign resi- prepared than when the late rebellion commenced. by the drowning at the’ same time of Lientenant!| dents and the Custom Howse. On the succeeding | Our navy yards and establisiments were thea wholly Commander J. H. Reed and ten of tho crew of the} day, affairs having quieted, the detachment was | inadequate to our wants, and a large portion of the Admiral’s barge, Occurred on the morning of Janu- | withdrawn. On the 19th of the #arae month auother | work was consequently executed, often at great dis- ary li. His communication with the shore had been | force was landed and remained on shore unui the advantage aud with great delay, by private parties. interrupted for several days by a storm, and he left | 26th, mm consequence of disturbances occusioned by | ‘Lhis defect has been but partially remedied, for, not- oge Of visit- | the assassination of General Flores. his ship @s soon as it abated forthe p ing the United States Minister, But hi capsized by a strong wind and heavy sea in sigat of most of hig command, Hvery effort was | Paraguay for the purpose of bringing away our | cessary establishments and machinery fer manafac- 2 by bowls despatched from the vessels present | Minister resident, Mr, Washburn. When she arrived | tarmg engines and armature, nor are we providing to rescue the unfortunate party, putonly three of the | at the seat of war in the Parana river the passage of | from the abundant means which the country pos- boat’s crew were saved, ‘The bodies of the lost were | the vessel through the blockading fleet was refused | sesses the materiais that should be collected in an- all subsequently recovered. ‘The harwony which prevailed at the opening of the | nionths and failing to convince them of the right of In none of our navy yards is there more than a new poris Was of short duration. -Didiculties, origi- | @ neutral man-of-war to ascend the river as far as | single dry dock, and there are but six in all—three nating in the innovations on ancient customs and | Asuncion for the purpose stated, that vessel returned buué of stone and three floating docks, in the event opposition to intercourse with foreigners, appeared | to Montevideo. In August the Brazilian authoricies | of a maritime war tpis deficiency would be sertously among the Japanese, and soon broke out in hostili- | withdrew their objection and the Wasp again felt—perhaps to a greater exiens than any other of ties. On the 2th of January the contending oe owing to its toriuous conrse and siifting sand bars. | sideration whether steps should not be taken came in conflict at Osaka. ‘Lhe Tycoon, who fa the exteusion of commercial intercourse, was de- | Asancton, on the Parand river, in the interior of | ments in w feated, and auring the night of January 31 sought | South Aefica, 930 mites from Montevideo. On the | proaching, at least, our relative importance with shelter with some of his’principal adierents on bourd*| 10th of September, at Villeta (below Asuncion), the | other naval Powers. The dock yards @ Cherbourg the troquois, which was in the harbor, was given him until daylight, when he was traws- | conveyed him to Buenos Ayres. Rear Adiniral | Britain, ferred to one of his own vessels of war, ‘On the 1st of Febrgary the several foreign Minis- | paring to accompany the newly gecredited Minister dock yards of these Powers are but slightly inferior ters were coupelted fo abandon Osaka ceived and conveyed in the Lroquois to I guay. they established their jegations. On the 4th of Feb- ‘The authorities of St. Catharines, of Bahia and of | facilities, already far greater than ours, we are doing ruery an assault was made in the streets of Hiogo | Uruguay have been respectively received ou board nothing in this direction. security of American | guarantee against aggression is a timely exlibition yut on two occasions it | of our ability to maintain the honor and riguts of the ad & part of the force at | country, furnish the only known refuge for vessels passing directly between the two continents, It 18 represented by the naval oficers who made the survey, and also by Rear Admiral Thatcher, lately bar at the entrance of the harbor might be deepened at a very small expense, and @ port vastly superior to Honolulu be thus opened to mariners, where a depot might be established for the supply of provi- sions, water and fuei to the ocean steam lines, and a refuge atlorded to merchant ships navigating that oceau. ‘ihe importance of taking possession of these islands and making the proposed 1uprovements can scarcely be over cathmated and should not be delayed, TRON-OLADS, ‘The department has continued previous arrange- ments for the custody and preservation of the iron- clad fectwhich ithason hand, These vessels can be serviceable only in thine of war, and the probu- bilities are that with @ prolonged peace they will, from corrosion and other causes, greatly deteriorate and not unlikely become uselesa;before they wili be needed for service. In the meantime thelr keeping and proper care are attended with considerable an- nual and atmo very distant period a large outiay, almost equal to the construction of new ves- gels, Will be req to put them in sailing and fight- on. pince the pomee of the joint resolution authoriz- ing their sale but two have been disposed of—ihe Catawba and Oneota, of a class of eight vessels similar in all respects—-at ther appraised value, $755,000, Which hag been paid into the general trea- sury, a3 directed, and not applied to the purposes of this department. Exception was taken to this sale “and transfer, and Cougress, reo @ commiiee, ordered an investigation, Delay and embarrassment followed, to the annoyance of the foreign govera- request of Governor Flores, fifty seamen and ma of the principal maritime Powers were we no better withstanding our experience and the itaprovemenis ba re was Early in the year, at the request of the Secretary | which have veen made, none of the navy yards pos oh the bar | of State, the Wasp was despatched to the capital of | sess the area and ‘appliances, nor have they thé ne- by the Brazilian authorities, and alter waiting some | Uc1pation of the national wants, ascended the river, Which is of dificult navigation, | our pressing wants—and it is worthy Of con- ‘vored | Only the smailer ¢ 88 Of Naval vessels Can ascend to | wathout Kees mace ma ae ee iis respec: @ condition —ap- Protection | Wasp took on board Mr, Washburn and family and | and Toulon, in France, and at Portsmouth, in Great eadh contain & greater namber of dry docks Davis, at the date of his iateat despatches, was pre- | than all our yards corabined; and some of the oiher i were re- | of the United States, General McMahon, to Para- | to those named. While Great Britain, France and , where other maritime Powers are increasing their dry dock by a detachment of Japanese troops on the foreign | the flagship, and intercourse witty them, and indeed ‘These and kindred subjects have been adverted to | ment which was indirectiy the purchaser, and the residents, ing which ope of the crew of toe | with all the South American Stutes, has beer of the | in receding reports aud need not be — eifect has been to deter other Powers froin offering Oneida Was seriously wounded by @ musket ball. [m ] most friendly and gratifying character. in detail, but coutd not be wholly omitted, to make Cyt and such of our countrymen as consequence of these outbreaks, which tureatene? NORTH PACLFIO SQUADRON, REDUCTION OF THE FORCE IN NAVY YARDS, loteresied themselves to effect sales, as @ business the saiety of the foreign population, the naval forces On the 6th of August last Kear Admiral H. K. A reduction of the working force in the navy yards present inade a jo.nt landing and adopted measures | Thatcher, who had been in command of this squad- | was commenced soon after the ¢iose of the war by \o protect the foreign setuement, Buton the sth of | ron for two years, was relieved by Rear Adwirat | gradually disnfissing the most imeMicient and uorell- operation, have apparently abandoned their efforts, it has been and still is the opinion of the depart- ment that the true poly of the government is to February an envoy trom the Mikado arrived at the | Thomas 'T. Craven. The squadron comprises: — able mechanics and laborers, and retaining oniy the | dispose, if possible, 0! he vessels of the classes United States legation with information of a change Guns, Guns, | experts and most faithful hands for continued per- | whose sale has been authorized by Congress. To of government. Assurance was given that foreign- | Pensacola (fihagship).. 20 Resacn manent employment. This arrangement, while it | keep them entails a large annual expense upon the ers Woua! be protected, whereupon a settiement was | Mohongo ee 10 relieved the departinent of the least profitable em- overnment, and in a few years, if ene eae, will mace and the forces withdrawn. ‘The Japanese om- | Lackawant cer who had command of the detachment of troo) and ordered them to fire on the foreigners at H din the presence of 4 nu) ber of the ofticers of the of war. Rear Admira! Rowan ed Yokohams on the | sence has bad @ saiutary influence, Rear Admirals | of construction and yet untinished at its close, for 24ih of dune, and found the open ports in posses- | Thaicher and Craven have each in his flagship vis-| which engmes were bulldiog under contracts, To ‘ureign naval forces, | ited that portion of the station; and the following | employ a small force of the best mechanics w com- in pursuance of agreement in conference, have laces hava been visited, some of them repeatedly, | plete in due tune the work on these vessels was con- sion of tne, Mikado party. The jointly .eceupied Yokohama for the defence of the yy the several vessels: . No serious disturbance had ulco, San Blas, Mauzanilla, foreign settiemen' taken piace there at the of events beewee and gratiiying; aud to che, o ber the Manoe: ‘the waters nayic ing the same mont and other omciuls. in Aprit the Shenandoah was sent to Corea to | of making explorations and surveys, and of deter- | navy yards, bweuty per ceat is added to the cost of make anther attempt t rescne the crew of the | mining the most suitable harbors and ancuorageson | labor. schooner General Sherman, which had been de- | the const and in the adjacemt islands. The Suwanee, The estimates for labor for the current year were siroyed by the Coreans some eighteen months pre- | under orders tor the same potnt, was wrecked onthe | based on the standard which had always previously viously, 1) having been stated upon a parently good autbority that some of them were stil! alive and in | well passage, while ia charge of acoast pilot. The | diminishing the ppriations below the estimat captivity, From all the information that Comman- | officers aot M4 mee nO: vd der Febiger could gather he concluded that none of | est beach. Rear Adimtral Hastings, commanding her | dered by each individual workman, While, there- ‘the crew or passengers of the schooner were living. a ery ta Pacific squadron, and Commander Porcher, | fore, the department is furnished with less means, it He succeeded, however. in obtaining a fair aurvey of | of he' laborers than the Ping Yang river and its approachcs, and in se. | to render valuable assistance On the occasion, T! curing other useful data. The Aryost’ Lieutenant Commander Beardsiee, | who was at the time at Esquimault, made tue bess | perty at our navy yards ia @ duty prompted by eco- conveyed the usuls for Amoy aud Foo-Chov to | practicably terms for aaving the engines aad otuer | nomy and iiceated. date of tha last accounts, and Rear Admiral Kowan was awaiting the progress: the contending patties. ‘After the death of Kear Admiral Bell, Commodore Goldsvorough transferred his'tlag to the Hartford, and left Nagasaki on the Ist of rebraary for Hon) Kong, on his Way to. Singapore and the United States. At Mong Kong he paid an oficial visit i@ | men residing there. the Chinese Viceroy ut Canton, who rules over the A Vessel of thig squadron continaes to be sta- | of the several navy yards. Of the large gangs of two extensive and populous sea coast provinces, | tioned at Panama Kwantung and Pulkien. The reception was cordial | on the istimu kK in sume measure the | double purpos nt piracies, the Viceroy prowlsed to tasne a | abie ordi ation prohibiting fMshing junks f ing an eXtra aumber of mon, of arias, or munitions | dificnt f war, ‘The limits of this squadron are extevsive and the | des worvioce required is of a varied character. in Decem- | disturbance on that occasion paswed wiluout any ne- | with mechanics. examined the track of steamers | ceasity for interference, between Nagasaki and Osaka through the inland sea, fn Jone last Kear Admiral Thatcher, in the flag- | navy yard duties among the several bureaus, which by the auxiliary sleamors of the | sbip, visited the northwestern coas Pasitic Mail Steamship Corapany, for the purpose of | Townsend and Kaqaimault. Seve determiaing on the Ves | altes for lighhouses. Dur- | squadron have visited the newly acquired Territory revails, have saved ann) the Ashaelot went to Taku, | of Aiasku. The Ossipee conveyed the commissioners | lars to the government at cach of the navy yards. where the passage of the United States Minister, Mr. | from San Francisco to Sitka, and wes present and ongress, by reducing the day’s labor of tose who Burlingame, had been obstructed by the rebels. ‘The | participated in the ceremonies incident to the traus- | Work ior the government to eigat hours instead of Minister and family were received on board and con- | fer of th veyed to Sbanghae. In Jnne the Unadilla visited | sent there primarily for the infuence of the cold cli- | the employment of a larger number of hands to exe- Bankok, in Sian, and delivered a present of arms to | mate in disinfecting them of yeilow fever, afforded | cute the same amount of work; and if it was in- the Prine Minister, Courtesiea were exchanged | such protection to our citizens as was desired. In | tended that tho per diem compensation for a work- with the King,.the Crown Prince, the Prime Minister | April last the Saginaw was despatched to Alaska, | ing day of ten hours fa outside establishments me valueless as vessels of war, and will have to be broken up and disposed of as old material. It ws worthy of consideration, therefore, whether they should not be sold, if opportunity offers, at less thad their present appraisement, PROMOTION OF OFFICERS. The act of April 21, 1864, wides that “no line officer upon the active list below the grade of com- modore, nor any other naval officer, shal! be pro- moted to a higher grade until bis meatal, moral aud professional fitness to perform all hts duties at sea shail be established to the satisfaction of a board of exami officers, to bé appointed by the President of the United States,” and unless he has *‘beev ex- ployes, secured a body of skilful mechanics on . 6 Cyane (sto whom the government could always, depend, and e, during the year, given who would form a nucleus to initiate otvers in tion to the west eoast of Mexico and | any emergency. Hulls which had been commenced the ports in the Gulf of California, where their pre- | in the navy yards during the war were in progress sidered true economy, and lor the best interests of the government in all respecta, But the action of Jongres’ has necessitated a further reduction, so ommerctal ports of the Central American | that but a remnant of that body of superior me- tes of Nicaragua, Costa Rica and San Satvador | chanics who were employed during the war remains, S Mohican and Oxsi- | and theyjare engaged almost excimsively in therepair | amined by a of naval su na aud pro- aud refiimgent of vessels, ‘These reductions have!} nounced physically qualified to perform all his du- introduced changes, and suggestions for improve-'| ties ataea.” If not recommended for promotion by They all respect our rights and those of our country- | mente in other particulars have led to reforms and a@ | :both of these boards the act directs that he “shall be reorganization of the management and government | placed upon the retired list.” Under the provisions of this act young oMcers in the early stages of thetr active professional career are in some instances placed on the retired list and thus become pensioners for life, after having re- ceived an education at the publi¢ expense without rendering equivilent service. No discretionary power is conferred on the Secretary or President to permit @ second examination, even if tho oficer shall have subsequently overcome the canse of failure, nor can any relief be granted, for the act is mandatory. $ It may Well be questioned whether any officer be- low the grade of lientenant commander should be jaced.on retired list for mental or professional isqualitic , which ig often the result of indo- Teace or eaten In the case of an officer sent before a retiring board and who may be found in- capacitated for active service, 1f it be shown tuat the disability or incompet does not “resuit from jong faithful service, from wounds or injury re- ceived in the line of duty, from sickness or exposure therein or from any Other incident of service,” the “officer may be retired: ugon furlough pay, or he shall be wholly reti from the service with one year's pay at the discretion of the Presi- dent.” Were this rule made appiicabie to those off!- cers in the lower grades who may fail to pase their examination for promotion, no injustice would be done, and the government would relieved from the expense of pensioning for life incompetent and useless officers by wholly retiring them from the service on such fatlare, or on @ second fatlure, after & reasonable time for another examination. LEAGUB ISLAND, a es 17th of = a ae os a of tiis property, with accompany Peceived frou ‘the city of Puuuipia, an. traus- mitted to the eng: Ry te for examination, i+ required by statute, in dion of the various La Paz, Oinal ‘or the protection of our interests | workmen that were employed in each of Whe me- The Cyane, now there, auswers ine | chanical departments #o few are retained in any of atore Vessel, and is | the branches that masters to supervise the workmen stion to Ameri- | ave no longer required, and they have accordingly ed | been gradaally dispensed with as the work has ves which rendered the display of additios diminished, Foremeu and quarter-men, who are sirable, and the Saranac was accordingly | skilful mechanics, now perform the service which wched to that point; but, happily, the political | was assigned to masters when the yards were Olied inarily carry: | can interests. ti ch lass there were threate: force These reforms, and a more correct distribution of touching atPort | constilutes an essential feature in the reorgantza- Al vessels of the | tiau, whereby & more close and rigid accountability y many thousand dol- ag. Tho Resaca and Jamestown, although | tev, has imposed on the department, as & Bovessity, where she remained several months, for the purpose | sliould, under the statute, Ax the rate of wages in Mth of July, by ranning on # hidden rock in Shad- | been recognized and observed; but Congress, while crew sneceeded in landing on the near- | also lessened the amount of labor to be daily ren- of Majesty's ateainer Sparrowhawk, were proaks Sar to em| wy tegen more 7 . e receding years for the same amount of work. vessel soon broke up, but Rear Adyviral Thatcher, To presery \d protect (he veaseis and other pro- by @ proper regard for the public Formosa in to enable them to visit the various | artieles. interest. Work should not be wholly suspended on ports on that island coming under their charge. The The Lackawanna, which had been at the Sand. | the ships which havo been commenced und are you | titles Involved has necessarily protracted, and pty oy in the lower part of this isiand, it | wich Islands more than @ year, was in May relieved unduishea put taey ehould be compicted and gradu- | one or two points suggested by the Attorney General will be recollect tmurdered the shipwrecked om- | by the Motongo. Our commercial and whaling tn- | ally iaunched and brought into service as they may obremain to be reported upon, It ts thought that cers and crew of the American bark Rover. Satis. | térests fully justify the constant presence of oue or | be wanted, If properly protected they can remats fied from fot that no fregnere Were in captiv- | more of OoF vessels in that quarter—a fact which | on the stocks for years without injury after the halls ity on the isiand, Lieutenant Commander Bearasiee | will be appreciated when it is Kuown that at one | are duished, Each vesse!, when she returns from a obtained assurances from the nativesof kinu treat- | time in November, 1867, forty-two Amorican flags | cruise, should be at once repalred and placed in au mens to and restoration of any persons who may | were fying from that number of whaling aad mer- | eficient condition. Hulls and engines, after long lereafter.ve shipwrecked upon the island. This ar- | chant, Vessels in the harbor of Honolulu, while bat | service in diferent climates, become worn and rangemen? was effected mainiy through the ostru- | six fags of all other nations could be seon. In Juy | jurec ut aBhort tune will elapse before the titie will be rfected and the land become the property of the jnited States, SITE ON THE THAMES RIVER TON WAVAL PURPOSES. In my jast annual report it was stated that a tract of land, having a water front of not less than a mile on the Thames river, near New London, Conn., and, if neglected, will rapidly decay. It can- mentality of General Le Gendre, United States Con- | iast his Majesty the King of the Sandwich Isiands, | jot be trné economy to withhold appropriations ¢s- | had beon solected for transfer to the United States, slat Amoy, Who, aecompanied by @n expedition | attended vy a portion of his cabmet and his per- | #ential for fall aad thorough repairs, for complotiag under the provisions of a clause in the act maklu, 4 by order of the Captain General of the | sonal siqi’, visited the Mohongo, and was received | improvements which have been commenced and for | appropriations for the naval service, approve: Foukien province, visited the island th the fall of | wii the honors due to his position. protecting and affording facilities necessary to the March 2, 1867. The deeds of the property were o < Lad an interview with the savage chier | SOUTH PACIFIC AQUADRON, good order, proper condition and eficiency of the | offergd to the government by the Governor of Con se ents with him sor the fature. The | me ‘tates that but for the exhibition of | mira! Dahlgren in command of this qe Rear AdmirarThomas Tarner succeede rda and navy estabiishiaenis, fn some re- nectlout on the 224 of May, and alter examination the public interest has Veen made to suifer navy by the Attorney General, as provided by law, were spec power of the United States the provious | 14th of Jwy lust. It is composed of tue following | from neglect or refusal to fhaxe #uiliclent appropria- | formally accepted on the 27th of June, 1 could have accomplished nothing. vessels: — tc for the purposes hereia indicated, aad it ia ‘The act directing {'6 acceptance provides that the Le draught steamers Aroostook, Unadilla Guns, Guns, | earnesily recommended that such omission be hero, | property shall “be held bythe United States for and Maninee, which were sent to the Asiatic squad- | Powhatan (fags! 17 Dacotan ‘ . 7 | alter avoided, navat purposes,” and good faith requires that action rou privcipaily to cruise for thé suppression of pl- | Tuscarora. 10 NY@CK wos... ee 6 THE NAVAL ACADEMY, should be taken looking to its occupancy by some racy, Were assigned to localities where such crimes | Kearsarge..... 7 Onward.. Admiral Porter continues in charge of the | branch of the service. An appropriation will ve had been me stantly engag that vhetr presence, with that of the # of diferent nationalities, bas In great pressed the crime Aithougn the se nese waters, the prin have been ¥ American jater NORTH ATTANTE Rear Admirai James 8. Pai mand of this aquadron died of yellow fever at si us. with ine disease was, on her re wr Me on | lavter vessel on t Tie squadron ta LOW composed of Guns, Contvocoo’ (Nageh'p). 15 Yantie BaCO wo ..sase <0 Getiysourg PUMOUHOGE, cree 6 8 Nps requent, and have been almost con- div this special duty, it is belleved | into ali the principal commercial ports from Panama | ton continues to be malatained, and the officers adron has been mainiy in Japa- | of Pera, and other officers, came alongside the Nyagk | the \ast academic year was seventy-nine, the nuim- yal commercial ports in China | and requested asylum from personal violence, whieh ber of admission the present year, forty-nine, To- «nd ail needed protection given to TADRON. r, Who Was tn com- ‘al the Cate of my last repost, Australia and the various groups of islands In the | days in competing exercises aud in the interchange t. Thomas on the 7th of De- f cember. Tho fagsvip Susquenanna being infected | condition of political affairs and disast ‘n to New York, | physical cogvnisiona in South America mission, and, until the Contoocook | dered it advisable that the vessels of the the Wampanoag was used a8 a | ghould remain on that coast. red the fag needed for enclosing the land and for the care and preservation of the buildings. Soom alter its accep'- ance Commodore T, A. Hunt was directed to take charge of the cohg hak and gee that no depredations were made upon it; but for want of an eppropria- tion nothing further has been attempted. TIMBRE LANDS, In miy annual Teport in 1s6é attention was invite! to the condition of the lands which had becu set apart by the government in certain States of the South for “the sole purpose of supplying timber for the navy of the United States.” nomber of agents were for many years appointed, with considerabie salaries and Gontingent expenses, Wo superintend these reservation protect them from defireda- tion; but oy WS was Fog ly = iy th vices payment Was also made for oll Guniet used by the navy. 1t 16 not known that he vessels of this squadron have Academy. Tho high standing of (ue tustita- gunboats | to Valparaiso, and bave rendered such protection io | yearly added t the service possess the advantage easure sup- | American® interests as was needed. On the night of | of excellent achdemic culture with professional di the 10th of January last General Prado, ex-President | cipline, The namber of graduates at the close of ‘Apprehended from the revoiutionary party. He | tal number of midshipmen now at the academy, also requested transportation to Chile. is requests | 284. At the commencement of their practice cruise were complied with, aud he wes safely janded at | the current year the midshipmen vistted the Military Vall Academy of West Point, where they spent several South Pacific have not been visited, tue disturbed | Of hoapitaiities, ‘Two of the vesseis—the Savannah « from | and Macedonian—thon satied for the Azores, touched ng ren- | at Madiera on their way home and arrived at An- quadron | Dapolis on the 20th of Augest, The. Dale returned and cruised in Coesapeake bay with the midaht Two vessels, the Wateree and the Predonia, have | mica who entered in June, and who compose tho ‘been los’ by earthquake. present foarth class, live oak Was eVor procured jor the wavy front INJUKY AND DESTRUCTION OF VESSELS BY RANTH+ © possage of tho act of March 2, 13966, these reservations, which are located im Georgia, QUAKES. ‘ormation of the present class I have ap- ssissippi, Florida and Lovisiana, A violent earthquake which ocentred in the har. 10 midshipmen from the Stated which ‘The agencies were discontinued during the revel- bor of St. Thomas, and to that vicinity, on the after. | were excluded trom representation; but tie adinis: | Hon, aud siace the restoration oF peace Ly appropria- 4 | pyon of November Ai, 4807, RUBEE We Mrwudioy Of | #9k of representatives dure the current year, | Hwbs aye bore wade WO FOVAYO OF COMMAUS [GIA in command of the North Pacitlc squadron, that the- A suggestion was in a former separ’ whether It would rot be best the Lan] Office to resume jon of theselands @ad put them in the mar- for sale, Should this not be doue an appropria- ice Ty secu sa be advisabie to pay such ageats may be appointed to protect these lands agains trespassers, PENSION LAWS, The second section of “An act relating to pen- #tons,”” at the last session of Congress, pro- entitied to@ ion widen « person be y wounds received or disease contracted the pase riee, of :tie, ‘United States subsequently to- wm untess the person who was the United States, at sea or in ‘bor, — rity Seip by Girection of com- other vessel oF haval ie Fe mame just to.deprive the an offi gua bhion ne te Tis Steet a pr: other way, 9 the small pension ie of da wed in such cases, because his name x upon the books of the station Patek oe Gaal n the harbor actually in commission. Within the past month an officer who had been forty-two years in the service, has died of disease “contracted in the line of duty” on shore, and under the provisions of. Ack nis Family are deprived of a pension. It is recom. mended that the law be amended in this particular, NAVAL PENSIONS, |The nayal pension’ roll on the 1st of Noventber, ‘1868, was as follows:— 1,175 invalids, annually recetving. ++ $92,674, 1,615 widows and children, receiving......... 247,152 36 invalids, under act March 2, 1367, receiv- seccccccecescavce, 4400 2,728 persons, receiving a tota! amount of...$347,031 There has been during ease increase on (ue pension list of 248 persons, for $27,202. PRIZES AND PENSION FUND, In my annual report for 1865 the proceeds of the sale of prizes captured during the war and adjudi- cated prior to the 1st of November of that year were given. Since that date most of the cages then in court have been determined, and upon the ist November of the present year the gross proceeds goch sales, as far as Teturne|, amounted to $21,875,344 expenses. as far as returned $1,828,000; het proceeds $23,629,627. During the year the naval peasion fund has been increased $1,000,000, making @ total at the present tune of fat Non. s i The act of April 23, 1800, provided “that all mone; accruing or which have already accrued to the United States from the sale of prizes shall be and re- main for ever @ fund for the payment of pensions and half pey, sould the Same be hereafter granted to the officers aud seamen who may be entiticd receive the same.” In the revision of the Prize la) in 1862, when the country was engaged in war, this proviston was re-enacted, and subsequently, pom the recommendation of this department, the Secre- tary of the Navy, as trustee of ihe fund, was ore tzed to invest it in registered securitica of the United States, which was done, at the same rate of interest the government was paying to other credttors—viz., Six per cent in gold, The statute also provides that af the income of the fund is more than saMicient for the payment of pensions “the surplus sball be ape plied tothe making of further provision for the com? iort of the disabied officers, seamen and marines.!”: In making this my annual report and siating the condition of the fund I have considered it my duty aa trustee to pfesent the foregoing extracts from ‘the statutes pledging the public faith that the money arising from the sale of prizes shall be and for ever remain a fund for the payment of naval pensions and for the investment in 8 bonds bea interest im gold. It is dimicilt to reconcile the act of July last, which reduces the futerest to three per cent in currency, with the pledged faith previously given, which involves the national honor. this loan beeu made to States or individuals on the terms gpecified the contract would have been literally fultilled, This fund bee longs unquestionably to the oiticers, seamen and marines of the navy, who, by their courage, activity? and enterprise, stimulated by th® pledged fatth of the government, captured the prizes trow the avail of which the fand is derived. ‘The income at the reduced rate of interest—less than is paid by the government for any other loan and payable in what ig called “lawfu! money” instead of coin, which is always lawful, and which was originally s) ecified when the loan was made—may be suilicient to meet the necessary alsbursements! lor the pensions ab rates now estabilshed, But had not the Income reduced over fifty per cent by the act of July last the rate of naval pensions might be ine , and i should have felt it a duty to renew my recommen ation for a revision of the naval peuston laws { that purpose at the present aession of Congress. t IT cannot in justice to the distingusned opr | officers who have readcred invaluable service to tit country, and ty their gailaniry contributed largely to this fund, omit again cailing attention to the fact that the present pension Jaws Juake no provision for, pensions for the famiiies of the admiral, vice ad. miral, rear adinirais, cotamodores and other xraded of the line and stat, and again urging that suitasie provision be made in each of these cases. EXPENSES AND ESTIMATES. jeThe available resources for the fiscal year ending Jun@ 30, 1063, WEre.......... .. $103,465, 754 By request of the Nevy Department there ‘was carried to the surplus fand of the ‘Treasury on the 30th September, 1607.. $65,000,000 Leaving subject to dratt....+ ..e.s0422.5 59A65;706 There remainet in the Treasury on the BOK JUNE, 1503.....sserereeeereeseeeeees av aa Showing an expenditure during the fiscal i YOAT Of... sssiseesssseesersse ies $20,120,506 The resources for the current fiscal year are 9a follows:— Balance in the Treasury........ Appropriations, act June 17, 1863. steeeeseeceececccees 701,77 signated to be curried awa Tatisieceee Sle Leaving unexpended and available for the current tiseal year... seeeesess SUBIR The estimates for the discal year ending June 3 1870, are as follows:— ui Pay of officers and seamen of the navy... 97,389,126 Repairs of buildings, docks, and inci- ental expenses in navy yards. ~. 1,285, Pay of civil establishment im navy yards, tal. There has been ¢ to the surplus fuad..... Ordnance, repair of magazines, & 460, Coal, hemp and equipments..... 1,320, Navigation aud navigation supplies. 207 5 Naval ACAUCOIY....-.-+ sees eeee s+ B10, Naval Observatory and Nautical Aliaanac, 40,51 Repair and preservation of vessel: Steam machinery, tools, &c. Provisions and clothing. . Repairs of saval bospitaia an VOTIES ..0. +046 Contingent expenses Support of marine corps. As Congress has for two years ned to Make appropriations ior improvemenis ia navy yards, © directed the several bureaus of the department, preparing their annuai estimates, to accept 1 poltay 80, empiatically indicated of the wishes Jongress, and to Hinit their estimates to the amount necessary for the wants of the service, based upom tue authorized number of men, and what ts absoe lutely required to keep in repair and to preserve public property. Should it be thougut advisabic place the navy yards in more efficient condition, be+ hiting the requirements of tue country and the ser. vice, former reports can refe to for state- ments of improvements considered essenual, oF, should the Begin the ph mepey fo tuese Tre ae, OF ae Fe any branch of the servi lesired, they will pe Promptly furnished. - Since the close of the war the estimates of this depariment and the appropriations of Congress, have, until the present year, been based on a maxi! mam of 15,000 eni: mea. Although the appro. priaions authorwed the enlistment aud paymeut of this number, the department in organizing the squadrons has employed nu more than the neces sities of the service on @ muderate naval peace establishment required. Lesd than 14000 mem were enlisted, icaving @ reserve of over 3,000 to Be called Into service in case of bos It has been the policy of the departiaent, while wi der my admuniscration, 0 preseut in each annual) report the actual condition of tae service In all ia branches, with auiple estimates for ever; regres ment and Proposed improvement. Cor the country have wus been fully apprised of the neces- sities and purposes of the department, and dofle Ra wt Subsequent sessions Have been ‘avoided. When Congress convened one year aga and the de partinent [earned informally that 1% Was Lie lutea tion to reduce the service one-half, to defer tne co.n~ pletion of veseela Which had been cominenced and for which engines had been contracted before tus inated, and to disconunue Lnprovemeite Y yards, the estimates were al onse cevisd and made to coatoria ty [he mew Coud!tioa of things. ‘he department had not been consuited in regard ie this reduction nor informed that avy chanye irom the then existing number Was designed; nor was y time allowed to recall frow disiant stations U els Which were to be dispensed with ia order squadrons might be graduated to the now . Measures were, however, promptly adopted apon the passage of the act to rodaed the number to the legat jumitation, which was accou- Pliahed by the 1st of Sepiember. ‘The estimates now submiittcu are for 8,500 men, 1M» cluding apprentices, the number established vy the act approved on the 17th of inst June should Com gress at ils pre essvion enlarge or diminish the Humber Bow auihoriaed the appropriations snows be made necessarily to correspond acd tia esis ne Which follow mast comform 10 existing 1o%Ur aon, THE BUREAUS, The accompanying reports of the chiefs of the several bureaus and of the cominandant of the a rine corps give a summary of the operations of te ir several departineats during the year, hf are re forrearey for fui! iarormativs upon points Wilicn cap ere be only briefly aliu to " The cuiePot the Jureau of Yards and Docks dotalie with minuteness the improvements made m the several navy yards, and gi statement of tie work now in progréss and what Is Considered abso- lutely necessary, with the closest econoiny, for the repair of tue buildings aod the care of tho public property. ‘The channel of the Waliabout bay, at © New York Navy Yard, has ao far flied up as to cavee much embarrassment fh the docking and moving of heavy ships, and an Appropriation will be required for the purpone of Arvlglig, Auvblos Glipst WO obs