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4 ibera) apirit of the overmment and the tone of 4 mecrios to waich its thustration 1s committed, But it is siso apparent that the means employed were utterly radequate to the ends to be actained, and that our small feet on these stations, consisting of forty-three vessels, mounting 856 guns, with a tonnage of 40,052 tons, wes too small in Bumber, and too weak in character, force and condition to perform the service required by the ideas of the gov- ernment and the expectations of our people, @ruising on the same seas and with duties not more various and extended, France has over 150 ships tu eommission, of a tonnage of 260,000 tons; while Eng- land bas, crowded into the same area, no less than 191 ships, with a tonnage of $28,000 tons, with her fying squadron ready to reinforce her power when- ever occasion iay require. ‘The eects of other nations rival, and some surpass ours in their number, size and character; and, m fact, our position on the seas was maintained only by the spirited and untiring energy of our officers, apd a pervading be.lef in the latent resources of our country and (he energies of our people, CONDITION AND SYFICIENCY OF SHIPS ON STATIONS. Of the forty-three vessels which composed these several feet’ not more than eighteen were in condition for real service; some have been con- demned as unseaworthy, and almost ati required derable repairs to bring them to their most eiticient stare. ‘The eMciency of this small force, moreover, was miuvb lessened by the fact that most of them were steamers, Without adequate sail power, The prac- Kical disadvanteges of relying wholly or even largely on these for cruising vessels will be easily seen; their complicated machinery, worn by constat use, 18 exposed to derangement on foreign seas; they are more easily disabled in battle or storm, and, what 18 even more important, they afford no scliool of seamansiip to oificers or men. Lounging through the waiches of a steamer, or acting as firemen and Coalheavers will not pro- @uce in @ seaman that combination of boldness, strength and skill which characterized the American sailor of the elder duy; and the habicual exercise, by an officer, of 4 command, the execution of which ts not under his own eye, 18 ® poor substituie for the aobool Of observation, prompiness and command Toand only on the deck of a saging vessel. Besides, Jew war steamers carry coal fur more than ten days! Use, and.as a large portion of even titls time must be consumed tn seeking a new supply, the disaavanta- ges a8 well as the great expense of cruising under these circumstances are apparent, particularly on foreign alalions, where our depots are necessarily few and the cost of fuel enormous, MONITOR ELEBS, Our effective force was still furiner reduced by the fact that our monitors aud tron-clads, Jaid up since the war. had received in the meapume little care. They were found, when the atteution of the depart- ment was directed to them, in a state of raptd dete- rtoration, Hulls, turrets and machinery, the most oostly and powerlul, exposed without care to the action of the elements, were fast losing their value; gnd of the whole Sect of montcors, relied upon by the country for defence, not one could have been ready in time to resist a sudden attack. A board for the “inspection of steam machinery,’? of which Rear Admiral Goidsborough was president, Was constituted by Mr. Borie, and from their report, hereto attached, it will be seen that many other of our vessels are entirely unsuited for naval purposee. ‘These statements, I may be permitted to say with- out tmputing blame to any one, exhibit our navy at &® low ebb—a condition the cause of which may donbtiess be found in the vast expenditure of mate- mal auring the great war, In the exhaustion which followed it, ‘and in a’sense of the burdens it bad tm- posed, affecting alike the department, Congress and ‘hie people. WHAT HAS SINCR BEEN DONE. With such material in this condition the depart- the commencement of the administration, tself charye1 with the duty of maintaining she naval power of the government in every part of the world; required to protect on every $68 the in- the dominant and responsible nation of n Coutinent, Whose boundaries stretch to of either ocean, whose people aspire to rival e of the whole world in every fleld of enter- pee ant whose government is piedged to the in- rests of freedom, civilization and progress, and at the same time to be prepared wilh reserved power and the means of appiying. it, available in every emergency tor defence and ageression, ‘To restore our small force to an effective gondltion and to make it avaliable in the best manner in its Jarge and growing field of operations in the shortest possible time, with the material at hand, and with- out addition to the national expenses, was the first duty which presenied itself, and to 1ts accomplish. Dank Gil the energies of tie department have been bent, In view of the importance of the work, pressing Upon it With such urgency, and Involving so many eonditions of professional knowledge, ihe Secretary endeavored to avail himself of the best professional biity at ms command im every bureau and depart- Ment of the service, ‘Thus assisted, ihe department undertook the task of reorganting the maieriai of the navy, as far as was consistent with existing laws and the stace of the naval appropriatious; and 1 think tt willbe seen that the resulis will fatfil all reasonable expectations, and fuily justtiy the wis- @om of its policy. it will appear from the foregoing statements, that while there were no ships at the yardsat home ready for sea, or which could be made effective without consilerable expenditure of both money and time, & jarge proportion of those on toreign stations needea extensive repair aud alteration. To meei these difliculues Work was renewed vigor- ously @t all the navy yards, and as fast as possible our ships im ordinary were put in condition for service. Those in commission have undergove the same Process as fast as they could be spared from their stations. More than one half of the whole Pacifle feet have been or are veing repaired at Mare Island, Nearly abi the vessels of the North Atlantic feet have been sent home from time to time for the same purpose, The Guerriere and Kansas from the South Atian- tio, and the Ticonderogs and “Canandaigua from the Furopean squadron, are aiso now in hand. The work hus also been renewed and actively pushed on all the available abips at the various yards. By this means we tave been able already to reinforce our various squadrons to some extent. The Severn, the Seminole, the Saugus. the Nantasket and the Dic- tator have been added to the North Atiantic squad- rom, which bas also been strengthened by the Pow- hatan and uscaTora, Bent from the Pacific feet as the only ilable meane for that purpose then at the command of the department. ‘The Lancaster, completely fitted out, has been sent to the South Auantio, relieving the Guerriere. or- dered home for repairs, and the Juniata, the Sabine and the Supply have sailed in like condition to rem- force the European squadron. ‘To secure the greatest amount of eMclency, with greater economy at the same time, ali the steamers susteptible of 1 which have been repaired or fitea out, bave been given fail sail power and rerigged, so that without Interfering with their speed or effectiveness under steam they are now entirely tudependent of it and are able to crulse wherever required, or, if need be, to go round the world without deterioration of boilers or machinery and without consuming their coal, which is thus reserved for times of necessity or danger. The ship-rig considered the most efMctent tor craisers has been already given to forty vessels of this class which have been or are now being altered, ‘The sucoess of those which have been completed, Including among their number, as marked instances, the Severn, Juniata, Mohican, Nantasket, Revaca, Lancaster and Swatara, has Illustrated the wisdom of the plan. The capacity of these vessels for every service is proved by trial lo have been greatly im- proved without loss of speed or effictency when under steam; and the department 1s convinced that by this system, combined with a judicious and prac- ‘ical selection of atmpler and more efiective engines, boilers and propellers, the eificiency of our force will be doubled and et the same time much money faved. Many of our foreign coal stations have already been discontinued and orders have been lesued wo the commandants of the squadrons direct- ing them not to permit the consnraption of coal for aby purpose which cold ve a8 well performed under sai] and requiring a report to the department of any deviation from the general rule, with the reasons for itin each instance. _ The result has already been a large saving. Several of our most effective cruisers have consumed Qo coal since the receipt of the order. Ivcan be shown by figures that tis system of giving and re- quiring te genera) use of fuil sail power, beside its effect Lo make sailora of both oficers aud'men, will, On the vessels intended to be kept in commission (caleulating that they cruise but two-thirds of the time), Make in the item of coal alone, as consumed under the old system, @ saving of more than $2,000,000 per annum. vur monitora iron-clads were also placed In the lands of the Mechanica and put in thor pair, Four of the largest have gone ito cor as part of our available cruising force, are kept, at smail expense, in comple t hole Beet can be ready for service in a week's ume. Of course #0 much work could not be done with. ont considerable expenditure of money, but py close economy and a system of surict accountability the sum of this expenditure bas, up to ‘the present time, been kept considerabiy below the amount of the expenses of the department for the same period of the last year. Since the la of March, 1869, no less than eighty vessels of every clasa have heen rept Pat tn process of repatr at the varior the books of the Treasury willshow a decrease in the corresponding period of 1468, of statement hereto annexed entitied “Exhibit of Ex- penditure’ wi suow the ships repaired and the snonshiy expenditnre of the department. VE YRESENT FORCH AND [Ye EMPLOYMENT ON THE VARIOUS BYATIONS. tic aguedron now consists of the rora, Severn, Albany, Nantasket, Swatara and the tugs Speedwell indish, together with the two heavy iron- clads, the Saugus and Dictator, twelve vessels, in- cM Ang ings, mounting in all seventy-six guns, eons a ted by Rear Admiral Charles H. Poor, eieved Kear Admiral EH 5 eptember tas miral Hod on the lsth day of Vor the reakous hereinbefore referred ta the de partment was not apie at first to show the force in te West Indian waters which the protection of our interests there seemed to demand. Some Ont rages oo American citizens by the Spantah authorities of the Island were reported, tn consequence of which Rear Adimifal Hort, vuen’in command, was directed to proesed Bautiago de Cuba to investigate the matter and take measures for the beter protection of American citizens and interesta, He execatod this duty with promptness and discretion; bia reports hsve been madé we bass of negotiations for re- Gress, and since this timely show of power no fur- ther aggressions are reported. The present. commander of the North Atiantio #yuadroa has been directed, while proverving # riot neutrality between tie contending Powers in Cuba, fo permit no sajnatice citizens of the United NEW YORK HERALD, WEDNESDAY, DECEMBER 8, 1869.—QUADRUPLE SHEET. States, to prevent interference with our commerce, and at once to. repel and punish say quarespect oF Violation of our flag. Owing to the prevalence of the yellow fever our Vessels have been necessarily kept outside the prin- ¢eipal port of Cuba, but they rendezvous at Key West, whence they can communicate by telegraph both with Havana and the Navy Department. Some of tho vessels of this squadron have also been cruising among the West india Islands, more articulariy in the waters of Haytl and St. Domingo, of this island has been during the past season tate of revolution, and tt was much regretied to Uhat the department could afford only partial protec- ton to Our interests in that quarter by sending vee seis from time to time as eo could ve spi from Other and more tmportant daty, ‘At Aspinwall @ vessel has been constantly kept to look aiter the persons and property Of our chizens at that point and on the isthmus, ‘The South Atlantic squadron now consists of the Lancaster (Qagship), Quinnebang, Wasp and Ports- mouth—four vessels, meunting forty-three guos, and under the command of Rear Admiral Joseph Lanman. It 18 highly important that this meet should be Increased, as there 18 not at this time on that station suMicient force to guard our citizens apd commerce on the coast of Brazil and in the regions of the La Plata, In consequence of the war existing between Brazil and Paragnay the navy has been fre- quently called upon to afford protection to American citizens and interests in that latitude, and the de- permens desires to send there, as soon as practica- ie, vessels of light draught which will be able to ascend the rivergof the Argentine Confederation and Paraguay. ‘The Pacific feet, under command of Rear Admiral Turner, with Commodore Wm. Rogers Taylor and Commodore D. McDougal, commanding the respec- tive squadrons, consists now of fourteen vessels, the Kearsal Lackawanna, Ossipec, Mouican, Resaca, Cyane, Jamestown, w, Dacotah, Saranac, Nyack, Onward and the Guerriere (refitt ), with pa ‘Fonemeois as flagship, mounting in ail 1: Foing hese, the ten last nanied have beeu or are thoroughly repaired and altered in the manne¢ hereinbefore mentioned, and the fleet, though smailer in number, is already much more edective for the duties of that station. A ship of war has been stationed on the coast of Alaska since that country was ceded to us, and the sloop of-war Cyane, with & properly equipped steam lagnch, has also been sent there as additional force during the coming winter, ‘An astronomical party was conveyed to Behri Strait in the Monican, and an interesting account o! their observations will be found in the report of the Superintendent of the Naval Observatomy. The rear admiral commanding the station haa visited the Sandwich Islands during the last sum- mer for the purpose of communication with our Min- ister and looking after American interests in that jocality. He has been aiso charged with the euper- intendence and completion of the surveys of the Midway Islands, for which and for the purpose of remioving obstructions Congress made an appropria- tion at ite jast session. The department hag en- tered Into a contract for the execution of this work with Mr. George W. Townsend, of Boston. The naval operations on the Pacific for the last year wtil be found, together with those on the other tations, detailed at length in the statement entitled “operations of Fleets” attached to this report, and, without repeating it here, 1 wil\ only say that, though the arduous duues of the stations nave been well Perorniey covering the extent from Alaska to Cape Horn and including the islands of the Pacitic, it still ts evident that our force in the Pacific ts inadequate lor the duties required of 1t. Our trade on that ocean is constantly and rapidly increasing, and our citizens are found located every- where on its anores and among its islands. All the grou; re visiied by our wualers, ana many Chris- tian missionaries, who are entitled to the protection of our government, are scattered among them. The regions of the South Pacific have not been visited by an American vessel of war since the ex- ploriag expedition under Captain Wilkes, and the great Polynesian Archipelago, holding out many inducements to our commerce, has been but partially explored and surveyed. Applica- fons come consvantly from our. Ministers and representatives on tie Pacific, urging the necessity of sending vessels to various ports, but we are rarely abe to respond to their appeals. The sioop-of-war Kearsarge was sent to make a Umited reconnotssance of the Pacific islands, with orders to extend her cruise as far as Australia, where she was last Heard from. ‘The satisiaciion caused by the appearance of this vessel at the points where she touched, gives a true and high idea of the value of guch cruises, The Jamestown was subsequently sent with orders to visit the Feejee Islands and the Caroline Group for the purpose of investigating reported vutrages on American citizens, and looking alter the interests of the Untied States in that quarter. ‘The departinent trusts that it may soon be able, With the approbation and asustance of Congress, to Meet more fully the requirements of this station. The Ruropean squadron, under command of Rear Admiral Radford, nas been reintorced by the Juniata and Supply, and the Sabine has been attached to it for the present, It coussts now of these vessels, with the Richmond and Plymouth, and the Franklin as Magship—six vessels, mounting 106 guns. Thisis of course but @ small force for @ station so con- spicuous and lipportaut, but we have not been able further to increase it, As soon a3 tie resources of the department will permit this squadron shouid be Jargely strengthened. The Asiatic squadron consists of the Piscataqua (flagehip), Oneida, Monocacy, Iroquota, Asbuelot, Unadtla and Maumee, and the Benicia, Co.orado and Alaska are also fitting out for that. atation— making in all ten ships, mounting seventy-two guas, Jc is commanded by Rear Admiral Stephen 0. Rowan. I to Ray that three of these ships Have been condemned as enurely unseaworthy, unfit. for cruising except in rivers, and unsafe to be sent to the United States; and as there is no opportunity of repairing them im those waters, the adiniral in command has recommended that they be sold on the station. The department has therefore direcied that, when it shail be no longer possible to use them with safely, their armament and stores be removed and sent home and the vessels themselves sold to tue best advantage. This order has already been carried out in the case of the Aroostook, which Was also condemned. The completion of the Pacifio Railroad must largely increase our intercourse with the East, and as the presence of @ strong navai force constitutes our most powerful appeal to Asiatic respect, itis deemed advisable to keep on this siauon as large a squadron as [Soret not only for the protection of our citizena, bat to increase the prestige of our repre- sentatives in that quarter, During the civil war in Japan the presence of our war vesseis was felt to produce a very bene- ictal effect. Carefully observing a neutral policy themselves, they gave security to our chizens and prevented \much threatened in- Jury to American Interests. Rear Admiral Rowan has been directed to afford every facility at his command to our citizens who are endeavoring to obtain from the Chinese government permission vo lay an electric telegraph. Should they obtain the desired permission an officer will be detailed w represent the United States m the undertaking. Elsewhere on this station every attention, within the limited means at command, has been given to American interesta. The squadron las been con- stantiy employed to its fullest capacity, Every effort is belng made to reinforce it with efficient vessels ag fast as they can Ye fitted out, but we shail not be able with our present means jo give it the strength which the station requires. INCREASE OF OUR FORCE ON FOREIGN STATIONS, Such is tae condition and employment of our navy atthe present time, differing trom what it was at the commencement of this administration only in the advance of the shipsand material on hand from @ state of deiertoration toa condition of eficiency and improvement. ‘This, while it was all that the department could do under the present aathority and appropriations, is by no means all thatl conceive to be veceasary for the safety of the great interests involved, or even for national defence in time of danger. The service needs and the position of yur country re- quires a great increase im the effective torce of the navy; DOL SO Much in the number of the ships that constitute it as tn the number and character of those, employed. 1 recoguize the necessity for close econo- my in expenditure under the present circumstances of the country, butthe naval expenses make but @ email partof the national appropriations, and the trae weaith of the country will not be increased by heglecting the means of national safety aud honor, nor money saved by refusing adequate provection to commercial enterprise, In a country peopled like ours, and separated by the ses from powerful neighbors, we need, in times of domestic peace, only the organization and nu- cleus of a land force; but with the prosperity which follows domestic peace comes the demand for pro- Vevtion to the commerce Which it fosters and the b it accumulates, uF prosperity, either a8 @ producing or as a Manufacturing people, is measured py our com- merce with conntries beyond the sea, and wise alatesinauship and trae economy alike require ade- quate protection for this means of national weaith, Doth on the ocean Where it ig employed and in the ports where itia organized and whence it tssues, and in which its immediate rewuits are accumu- fated. We have aireaqy opened steam communication be- tween Europe and the Bast across our continent and through our ports on either ocean, in this age time is On easentiai element of wealth, and we may rea- Sopably expect that the rouse which conmects tue trade of ‘he Kast with the markets of Eu- rope im forty days will, i fairly fom tered and protected, practically supersede that Which consuines twice that pertod. The nation controlling (oe trade of the Mast has always been the leading one in the commerce ef the world; looking to 118 4% the source of national weaith and main- taining @ powerful navy for its protection. As our trade in this direction increases we should gradu- ally prepare to protect it on tha waters of both oceans; ad OU responsivity will be largely ine creased if we anall be abie to open, under the aus pices and protection of our government (and we cans not cominit tt to any other), ship comuunication across the great isturmus, To afford reasonable protection to our commerce we must have some ships able to cope with those of other maritime nations. Our navy, dunng the War, Assumed large proportions in reapect of num- hers aud expense, and It was effective, for the occa- sion, against an enemy baving litte naval power; but It was made up largely Of vosse a purchased or built to meet the emergency. A large proportion of IL Waa not adapted Co cruising purposes, and, with the ¢xcepiion Of the taoaltors, Which were not built AS sea-yoina versela, It would have been aimoat powerless against such Meets of sea-going tron-clada a6 eliher Eogiand or Fran ould brug IAto action on the ocean or on our own shores, it is the Habit of every foreign nation, Making any pretension to maritime power, to kedp ou every sia- Hon one Or More powerfsul sea-going vroaduide men- Clade, wyaInAT the Jorce of Which OUT Wooden ves sels on the same atation would be event of a war our suips would ficed or obliged to fina in neutral ports, or, abandoning the sea and leaving our commerce to 118 fate, to seek On our own shores the protection of our monitors and forts, It is not doudted that any war with a foreign enemy must be @ maritime one, The American pev- ple are accustomed to success on the ovean, and they would sae aon om oes lesa Poni inatin k forgive a policy which, of a sorely war, sent our navy horrying pn AS to our ebures. Yet we have not. at this time, on any foreign sta- tion, a squadron whose combiued force would avail Jor @ day against the rertul seagoing iron-clads wihtch both France land awe on the same stations. ‘These are not agreeable facts to contemplate or to state, but, after giving the szbjoct much tavestiga- tion ana rediection, I have felt it to be my duty to Btate ibe truth frankly, through you, to the represeat- tives of the people, that bn determine Low much and how promps action the situation re- aires. ¥ It ts true our best monitors would, if brought into action, be powerlul against anvthing that foats, but these are steam batleries, not seagoi! eruisers. Some of them have tlustrated by auccessiul experi- ment their capacity for a wea voyage under tavora- bie circumstances, and the department has, for want of any more avaiable force, lately put some of them im commission for duty on home or North Atianlio station, but they could not be used with advantage as cruiers on foreign siations. They requireseveral vessel to accompany them, and, being eauirely wituout sall power, must be towed as so! taeir cogt is exhausted. They would be always darigerous to health in tropical peas, and with broken or disordered machinery they would be helpless in mid ocean, ‘dhey are Valuable for auxiiary defence of our own shores, but should not be relied upon beyond them. A cruising vessel, suitable for our requireineuw, werless. In the uselessiy #acri- should be able to depend on her own resources witu- out looking for aid other than that she carries within herself. She shouid have ample ateam power to carry Ler rapidly in-chase or 1p action, and should at the same thine the qualities of a frst rate bulling vessel, able to keep the sea at will without -ou- coal. broadsi suming ber She suould carrya de bat- tery of heavy guns, and be herself 1mpervious to tne heaviest ordnance atvar f bd Bnugisnd and France, rivaling each other tn inge- Duity. energy ana lioerality in this direction, have bout succeeded 10 constructing some beautiful speci- mens of iron-clad sailing vessels, wih auxiliary Bieam power, eifective lor every warlike purpose aud alle to Keep the sea under all circumstances. Tuey vuve high speed, and one of them would be & terribie foe jor ® squadron of wooden vessels, In the mieaniiine we have built no ships of that kind; but we have watched with interest all the naval ex- periments of Bop, Be tamilar with their de- tails and result, we Know their strengin and their weakuesa, Under these conditions we can be sure that every atep we take is a wise experiment Of’ real mprove- Ment, ‘The time has come, I thiak, when we suould begun to use te kuowledge we bave been seeking, aod I therefore earuestiy urge the propriety of cou- mencing at once che building of seagoing iron-ciads, @uicabie to cruise 00 loreiga stations and able to protect our commerce and vindicate our principles im any emergency. We should aim to have one or more Of these abips on each foreign station and to be prepared with tue necessary relieis. ‘ais will uimately require uo less tuan tea in all; and, with- Out aeinpling to builu thei all at once, we shoud (admouisned of the urgency of the case and of tue time heceasariiy consumed 1a their conairuction) commence immediately on mo less than tour—oue for the Asi@uc, One for the iacitic and two for tue Huropean squadron—loliowing these, ag rapidly as cucumstances will admit, With those necessary for the other squadrons and thei reefs. 1 recomend tiat pians lor We botiers and engines of these ves. sels be suomited by persons outside of the navy, ‘the best of whica may be avopted, These, with sume additions to our wooden vessels and the reiitung on the pian adopted, and the proper guiploy uient of Buch eifective BNIps a3 We Low have, @nd with our monitors aad torpedoes fur harbor de- fence will give us the nucleus of a Davy—not, in- deed, proporiioned to our commerce or ap- proaching tae force of other maritime Pow- ers, DUt suMicient to commsad respect abroad, and to aiord time, im case of sudden war, to orgauize and apply the resources of our country and tue energies of our people. For your iurther information and taat of the repre- sentatives of the people on tas suoject, Lhevewita \rausuc, in che paper entitied “Mercantile aud na- Val wunage,’”? @ uetailed statement of our mercan- tie and waval tonnage, and tie relauon whica it Dears 10 tuat oO: Some ovier daritime vowers, Un ule 30.n of June, 1868, Walle our ships of war in Commissioa Dumvered nity-seven, moununug 692 guns, With @ tonnage of 59,495, or Only about one- eghtieta of our wuole mercantile tonnage, those of Frauce In commission uamvered 150, and bad a touuage of 2ou,v00 tons, or one-eighth of wueir mer- cantue Marine, and tose of Hngiahd mm comuission miuiaberea lvl vessels, mounting 2,600 guns, aud bad &® Lonnage Of 325,614, OF One-seventeenta ol the mer- cauiue marine. ‘yhws comparative statement representa our com- Merce in jt present depressed stale, bow France aud England, since tne date at which the comparison 18 maue, nave added largey to the humver aud power o: their respective naval estav- lsoments; but we Nave notincreased, nor unt very lavely even preserved ours. HOMS DEFENCE. But the subject of protection to our commerce snd Influéuce on foreign seas by nO Means COMpreheuus Al Lihat tue departinen: feels calied upon vo repre- ‘BEMt 1G Condeciton witu the question Of tie size and character of our navy. due matter of vational defence 19 still more im- Porianl, aud comes Nowe as Closely to the iavere: and the pride of tue whoie people, Any compreiie: sive pian of @ naval esvauiisament must inciude soe pracucal provision jor tue deience of the pu. Merous seaports scattered aloag our coast and cio great rivers and bays, on WuOse shores are coucen- trated so much of the national and individual wealth, ur monitors have been already alladed to as a Teady aud eifective means of barvor defence, and this they Wii doubtless 00 to the extent of their Muaber and capacity. But, uniess compieiely and Certainly iavdinerable, they are comparatively use- leas, and we must therelore keep pace with tie late improvements in ordnance. Most of them are capa Die of bearing the additional armor necessary to give tne strepgtu required, but tais will, of course, re- quire & Dew and considerable outlay of money. TORPEDO CORPS, Another comparatively inexpensive but most effective meaus 1 aelense has not escaped the atten- tion of the departwent, 1 refer to tue submarine Vorpedo. ‘The terriole destructive power of this lustrument Was shown during our laie war. Since that time considerabie attention has @een given to this subject by oficers of the navy, pariicuuurly by tuose siationed at Lie Naval Acageuiy. Shortly alter my appointment as head of the department @ torpedo corps was establisued under the bureau Of Orduance to make experiments, take coarge Of the apparacus aud perfect a system for tue Spplication Of this means Of defen our coasts aud naroors, ‘Tais 1a, of course, not a subject for public fllas. tration, but euough experiments hi rei been made to siow how Le, terrible, is this means of det! ail having kKuowiedge of wad) nce; 1% that when it suail have teen further perfected and its use syatema- tized, the torpedo will be one of the most eifecuve weapons of marine warfare. To insure safety and success in their use under every condition requires @ Knowledge of the sacieatide principies applicable to their construction and use, With an Intimate ac- quaintance witn the localities to be defended. ‘The Vorpedo corps has therefore been selected with care, @ad the experiments are conducted under the super- visioa of an officer Oi scieutiic avility. AB soon a3 a Vorpedo 1s constructed and the particular locality Aud manner OF Its use determined, it can be stowed Si as An INexpensive but most effective weapoa of war. ‘duis means of defence, properly applied in con- junction with a system of harbor obstructious, backed by monitors and supported by the forts and water batteries which command the narrow en- trances to our principal harbors, would defy any power which could cross the ocean to attack them, These localities have been the subject of careful in- Spection by both branches of the military service, ond bok are thua prepared witn the kuowledge waich only actual inspection can give, 1 commend this suoject through you to the atten- tion of Longress, and 4 trust tuey will afford the meaus to pursue and perfect the system. in the paper herewith transmitted, entitled “Plan of naval esiablishiaent In time of peace,’ will be found a detailed statement of what ts believed to be the most economical and eMcient organization of the force necessary. ‘This force, there estimated as low as one-fiftieth of Our Mercantile Marine, or et about one gunboat of #x haudred tons to sixty thousand tous of com- merce, is less ia the number Of suips than that which we now have. fo carry out the suggestions I have made, both for foreign aud home dvience, will not of necessity en- tuil @ Very heavy immediate expense. Jt will bé seen by the report of tue board on steam machi referred to, that we L ge nui ber of Costly vessels and a vast amount of expensive machinery bot adapted to the uaval service wod Comparatively useieds in its reorganization, By (ae gale of these articles Aw rapidly as tt can 00 done to advantage @ large proportion of the cost of tue pro- ed luprovemen's cau be aitiumately repaid to the freagury. Besides, by making our force more effective tn character and orgauization, we aliaii be able to keep ® jess Dumber of ver ia commission In propor. Aion to our Coast line aud commerce, and expeare ‘Will be decréased by (he decrease of We AuMber of slips, men and oMcers employed, ‘Tovse moans, With the proposed annual saving in the ns; Of coal, should quickiy Feimburse for proseut outlay. OURAN STRAMERS. There is another clement of defence against the time of danger, periaps us effective as any other, available to wise and liveral statesmanship. Na- tions, like men, hesivate to altack those who aro prepared to do them serious injury, aod in the means of destructive aggression is olten found the Surest defence against all who bave anything to Jose, Such means would be at band, if we hea lines of ocean going steamers ostabiisued, runoing out of our ports im the peaceful pugsutt of commercial en- terprise, but carrying our own faw ana availiable to our government in time of need, * The attention of thouglitful men has been much directed to this subject, aud all are jooking to the national governineut for encouragement. To pro- Vide and protect tue great meane of commercial tu. tercourse, bopa domestic and intereational, is one of the direct purposes of goverament, for whlob iv is es(aviished, aud to Which tis resonrces may properly be directed. snterprives of such maguitude are Underiakeu tb great CXpeuse Bnd rigk Of capiial. Important elements of the public wealth aad pros- perity, they are, 10 thelr nature, subject to the vicis witudes of public policy, A thus assume ® Da tonal Soareniat se pea Fie the proper #ud- ta !or govern! ton, it wilt not become me to discuas im this report the many arguments of national prosperity and pride which press the subject u us, but I may be permitted to urge it as an important element ot national safety. In support of this view, I call atten- tion to the fact that there are now running from tho ports of New York, Boston, and Baltiinore for those of Kurope over sixty powerful screw steamers, aver- aging nearly three thousand tons each. ‘These steam- ers, carrying the English, French and Gerinan fags, are, most of them, the results of wise liberalliy on the’ part of their respective governments; and they now absorb a very large proporiion of the carrying trade across the Atlantic. ‘Their average time in crossing, t0 and fro, in all weathers, is not more than eleven days. Any one of them could be guickly converted into an eitl- cient and poweriul ship of war, capavie of carrying fuli sail power and keeping the sea for eny length of time. Here, then, 18 » heavy tonnage Dossibie war vessels, larger Dig that of our whole navy oa te Ist of January, 180 Had our mercantile marine possessed such lines at the breaking out of tne late war, we wight, in- stead of permitting the rebels to introduce @ vast amount of war material before we could coliect the means to prevent it, have qulckiy closed every soutnern port A comparatively small force of this kind, appro- priately armed and let looge on the ocean, under the command of boid and intelligent officers, would be @ dangerous foe to the commerce of any country. ‘Our own Was subscantially driven from the seas by two or three roughly equippea vessels, mach inferior in power to those of waich Ihave spoken, Thus it will be acen Wat m0 giving up this fleid to the occu- pation of other nations aud yieldiug to them the commercial advantages which -naturaly Delong to our OWN posiiion and resources, we ab the same mes 3 Telunquish our own weapons and aru our possivle enemies. We are loosing with confidence fur a ‘args in- crease in the commerce of the East, which will re- quire a corresponding mcrease 1n the preseut means ot rapid transportation on bold oceans; and, In the Jatercst, simply of the naval establishment and of 30 MUCH Of the national defence as depends upon it, I earnestly urge taal measures be taked wt tuis JUNC. ture to induce our own merchants aud slippuliders to enter into this feid of enterprise. Tnducements shouid be held outto those who are wiiiing to undertake it, to build steamers on plans approved by the Navy Department, subdject, 1n case ol Sraenedies be taken by the government at an appr value, A ‘nose on the route between California and Japan should beable ut all times to protect themselves against pirates and privateers, and all should be of a gar Hinenaes in War, ON RS 10 Not, of course, suggest any particular p! on this subject, and I speak of iwonly to show bow much the naval estaduahment, in. common with every other national interest, Wl be aifected by its. proper solution. NAVY YARDS. Among the most imporant elements of a naval estavlisiiment are the yards where lm material 19 collected and ita ships Duilt, repairea and equipped. When these are nos of a onaracter to enabio this work Wo ve done well and rapidiy tae establishment is weak in an important point. Toe great maritime Powers of Europe bave immense establishments, built and Maintained at great expense, and sure nianed with every means for we rapid consirucuion aud fActog out oF their fleets. ‘The trst oilicial act of my immediate prede- cessor Was the appolntinent-of @ board to exauiine and report the conduion of our yards, and 1 nave inyself visited and laspected most of those on the Atlantic coust ‘they are generally of email capacity and iikadapted to meet te requirements of modern naval cunstruction, Some were esiab- lished at @ comparatively early daie, apparentiy without providing for the fucure, and are not, iD weir present position, susceptible of much improve- ment; aud others, toough Of larger capacity, are at Dresens poorly supplied with the means of rapid work, We have seven regularly established navy yards. Not more than four of these are capable of tiumg out more than two or three vessels at one Lime. lo all, we feel tao want of more docks. Ip our seven Lavy yards we have but threedry docks. This want would be severely felt in time of war, a8 the floating docks used by the mercantile marine are not suita- bie for takiug a heavy armored sip outof tne water; and nothing is really safo for a vessel of war butaresular dry dock, into whicn she can enter With aruament and stores on board, without strain- ing or danger, While 1 mention these things as a proper subject matter of report, I do notat this time propose any large expeuditure for the improvment, in Laege particulars, of the yards in actual operation ‘on the Atiantic coast. They ure geueraily availuvie for tue present, and the most pressing need is else- waere. ‘Yne report of the board appointed to examine the Condition of the navy yards 14 herewith transmitted, At will be ound to be very instructive, and to the m- formation aud suggestions therein contained caretul cousideration shouid be given, Never velure as 80 much and such accurate information on this subject been in the possession of the department. ‘Luere are a few points, however, to waich I desire to direct particuiur attention, Pensie l.—Lhe first 1s the neceasity of some action for increasing our facilities in tue Guif of Mexico. ‘rhe yard at Pensacola was 80 far desiroyed during ‘the war aa to be now almost wholly useless, and we are Witaout & depot on the Guif where the vesseis cau be refitted. ‘ihe stauion, which imciudes the West indies and the Gulf, ts one of great and grow- Ing importance. In the present conuition of things @ vessel on that station needing any repair is obliged to be sent to the navy yards of tue North, Mare Isiand.—Tue navy yi at Mare Isiand ts our only yard on the Pacific coast, and on it we should be able to aepend for the maintenance of our wuole feet on that ocean and in the Bast. This yard is very lavoraply situated, of large capacity and capa- ble of being made the great naval station of the Western coast, Much loss of time avd money is incurred mm sending ships around Ct Horo, and proinpt measures should "be taken to establish at Aare island a working yard and depot of naval sup- plies suilicient for the building, furniwuing and Tell. tung of our slips in the Pacific, deague Isand.—The third point pressing on thia suoject is the necesasity of commencing at once to prepare our great fresh water naval depot at that part of the Philadeiphia station known as League Island, ‘This is not only desirable in view of tne present conditionof the yard at Puiladelphia, but is rendered necessary by the present character and future necessitics of the navy. Supa of course, better constructed and equipped at large establishments, possessing com- pieve acéommouations aad facilities ior the eco- nomical arrangement and application of material. ‘The great deiect in tie situation of most of our Yards 1s their want of Jahd area and availabie water front sutficient to do even their present work to ad- vantage. ‘this 18 particularly the case with th: of the naval sation at Philadelphig where the work 18 now done. Tue water front of whe present working ground i so smal that four ebips can hardiy Me there without being in the way of cach other, Buildings and machinery of every description are cramped and crowded together, tterfering with their proper ec, CaUslng greatexpense of DOLL time and money, and, Irom the close proximity of workshops and in- fammabie material, exposing the whole to great nisk, in case of fire nothing but the most favorabie circumstances would prevent a general destruction Ol everything in the yard; and great vigilance is re- quired and constant expense incurred to guard against 2 acneral condagration of houses, ships and material. Moreover, this portion of the station 1s situated in the midst of @ great city, stopping Kis growth in one direction and interferlug wit), ite improvement, and itself subjected to ail the incOhveniences incident to its position as an independent establizhment in the midst of a municipality with adverse interests and under different government. Like diinculties have been felt at the Brooklyn yard, Unt (hose at Philadeiphia are much greater, These inconveniences in the working of & station of guca absolute importance as that of Vhiladeiphia are most serious, They are great at all times, Will be more severely felt as iron comes, Dow be the case, to be more generally used as @ ma- terial for naval construction. In view of tie neces- sity of fresh water for their preservation the Puiia- Gelphia station ia, for the repair and ordinary of fron ships of every class, far the beat, if not the only practical, one oa the Ailantic coast, Situated on & great fresh water river, 120 miles, by its course, from the sea, ia the heart of a popuious country, at the great centre of tron and coal, and with water suMcient for the draught of the largest stilps, it pre- senis at once every Conuitlon of convenience, econ: omy and defence. ‘The only dtiticuity for the present and for the future 18 found in the size and sitnatton of that part Of the station which we are now, for want of legia- lative action, obliged to use as the working yard. I should not feei authorized to speak #o strongly On this subject were it not that we now actually own, 43 & part of the same general station, Wis island, Of an area of 600 acres, between the lines of mean low tide, cutom by navigable water from the tain land, with a water front on the Deiawere alone of two anda hall siatute miles, with a deptn of water of thirty feet, and with great natural facilities for basins and docks, enjoying all the advantages before enumerated and subject to none of the incon- Veniences experienced at that portion of the atation now ta active uae, This position was approved by the department After close investigation by oMcers of every Clase; and the iand Whe giftor the city of Philadel phia, and purciiased by her at greatexpense as a measure of relief to herself and the government, wav Given and accepted with the ideaot transferring wo Vhas point ail tie navel operations of the station, Tola the department haa been and 1s anxious Lo av complish; but it nee aronranion for the pre paration of the hew yard, apd Without this it cal HOt Move. In the meantime it would be foolish for the depart ment, even if it telt authorized, to expend money on the permanent improvement of the present working yard at Philadeiptia; and nothing a te Gone eipner In the rewrrangement of buildings or the providing of the improved cooly and machinery proper tar the Work required, nual expenses of this yard are, for these Teasons and those before given, much increased; aud tt is not doubted that the favings from this source, and from the nse NOW Incurred OF main- taining two establishments, with the money whion can be realized from the judicious sale of the land now occupied in the heart of the city, will go very far towards repayiue the expense of estabishing the yard at League isiand. I trust, therefore, that authority, if it be neces- Rary, Will be given to the department to trauster the working yard of the Philadciptia station to League Isiand, as rapidly 88 is Cousisioat with portion ) work necessary to be the interests of the service, and to dispose of the Bite Chouand are at el a and oe Jone belore any part or the t yard can be sold. ‘The survey of the isignd and a plan for Hs im provément is herewith crapsmitted, New London.—Elghty-unree scres of land on the Thames river, near New London, were some time mance given by the State of Connecticut and accepled ay tne Soverapens te, a rod w the estavlsnment @ naval station at that place. In conformity with this Understanding the Depart. ment fas placed @ proper naval officer in command there; but it is able to do nothing towards actually De page the new station without ap sppropria- won for urpose, The Mt 1s well situated on the bavk of is favorable, in its general character, jor the object designed, and it has 4 water front of 6,280 feet, running back from the river 6v0 lect, aoe ie depth of water in the chaunel of over foe It is situated in the midst of an industrious com- munity, whose’ labor 13 siliul.and cheap, and on & ee harbor Saale sone in all weathers and from oat every polut ‘his land was, as I have said, given and reecived for the purposes of a new naval estabushment and 10 this spirit the department presents it for the con- sideration ‘of Congress and such appropriation as present circumstances may warrant. Other Yards,—'there are two otuer points which require consideration and action a3 soon as tue Con- dition of affairs will admit, 'rhe first 1a the propriety of increasing the size of the yard at Gosport, in Virginia, ‘This yard 18 in a most favorable location, with & beautiful narbor easily deiended. ‘ihe ground adjacent to it, run- ning up we river, could be purchased on beter terms now than 18 likely to be tue case and woula be very valuable, giving tue gover! we jand on doth sidesof the channel. ‘The other is the very great convenience and econ- omy which would ultimately result Irom the estao- lisument of a yard, for repair sud refitting at ieast, somewhere on our southern Atlantic coast All our snips cruising in the West indian and South Ameri gan wa.ers are ob! to resort, wl great disadvan- tage, to our borthern yards tor all needed refitung aud repair. Though this subject does not at time press with as strong necessity as many ov} yet it 18 of great Importance, and may become wuch more so in view of a possible ship canal through the isthinus, and the consequent great increase in the trade and unpor tance of the West India isianda, improvements, and some ultimate changes, required in other yardg, toe particulara of waich on be ound in the report of the Onief of the Bureau of Yards and herewith transmitted, Jn con- nection with the navy yarus J 4 to call atven- tion to & matter which, though not of greal national imporvance, aifects seriously ‘@ large clasa of deserv- ing persons. The act of July 14, 1862, pronibita lu effect the payment of any wi to work- ingmen, except ‘for the time during which they areaciuauy engaged.” This provision, which does not interiere with salaried employes, seriously alfects workingmen Who are ready to work, but are deprived of tue opportunity, on each of the many recurring days of national mourning or ceremony, ‘Tms, thougn apparently 8 small matter, 18 of real importance to those who are dependent upon tue wages they receive each day for the daily support of their families, and who, by reason of thelr Ment with tue goverament, are deprived of otuer employment. I wrust the taw will be so modified us wo permit the department to make the workmen somo aliowance on days of accustumed and compule sory lelsure, BER “.ANDS. om™! I also call attention to the lands reserved by the government for the supply of timber to the . From this source we drew our supplies of oak in former times. No adequate protection has been given to it of late years. Much of it was destroyed during the war; and of that which escaped, large quantities have been indiscriminately cut by trespassers and soid to the government. ‘This timber 1s of the test value and its loss can- nos be again suppilt Once destroyed, we have 20 other tinber to take ite piace. The old “Constitu- tion,” bullt of thig material more than seventy years ago, 18 atill in commission, with half her more important or! Unbersa in her, while feew or White oak vessels Lave long since gone to decay. It Must not be supposed, that with the use of iron in suippuiiding the necessity for indestructible timber Wil no longer exist. ‘The tact 1s that 1t must still be used to @ great extent in the construction of cruising veasels, even though built of iron. From it are made the immense srames which are built \o support the Iron and give buoyancy to the ship. ‘The supplies of seasoned timber Jaid up in our yards have been almost entirely consumed, and we should take every.means to preserve and secure that which remains on the goverainent lands, ‘The department has lateiy detailed an officer to look after these lands, but nothing but stringent lawé, strictly enforced, will secure the remainder of we old tumber, and protect the new growth. NAVAL ACADEMY. The standing of tho Naval Academy continues to be maintained, The sysien of mental and physical training there pursued 1s of the highest order, cover- ing every bronch of practical and professiona: know!l- edge, and tittung the student for all the varied duties Of his profession. ‘the graduates bring to the ger- vice minds disciplined and enriched vy regular and Well directed study, and bodies strengtned vy maniy exercise. in meatal and pnysical accomplishment, im tone and spirit, in character and capacity, tuey do honor, as @ ciass, to the iustitution and to the coun- try. io change has been made in the system of educt thon since the last report. The number of graduates at the close of the last year was sevenly-iive; the Dumber of those edmitted during the nt year Was eighty-six; the total numoer of midshipmen now at the Academy ls 248, ‘Ihe Vite Admiral, for the Jast tour years in charge of the Academy, and who has tospired it with the energy of his own char- acter, has been this day relieved by Commodore poe L. Wordea, who takes charge a8 suverinten- rh ‘ybe report of the superintendent for the last year ig herewith transautted. SEAMEN AND PETTY OFFICERS, But it is not worth while to maintain expensive Davy yards, build fine ships and caretully educate oillcers of higher grades uuiess we pay closer atten- tiou to tne character gud training of our peity oil- cers and seamen, ‘The naval service everywhere presenta conditions of life, duty and discipline diiterwng irom those of every other pursuit. ‘Tue nature Of naval operations and the ctreum- stances under whic they are performed require and produce these conditions amoug every peopie and under every form of government, Tney combine to establish & distinct class, with strong features of re- seurblance all over the wor.d, and every where ditter- ing irom the body of the couutry they represeut, ‘The best characteristica of this class, both officers and mel, are clearly the results of the discipiiae, training and traditions of the service in which they have been reared; and wherever these traits are most distinctly recognized there the service is ever most eiticrent, We, in coumon with other maratime nations, have establisied schools of instruction and preparation for olticers, and Dave produced as a resuit a corps wailed wil compare most lavuraby with any in the wort but woe have neglected and are vegiecting the Meand necerrary vo bring iorward, educate and ‘aytuca to our service a compelout and emigient bouy of American seamen. 1 deem It absolutely necessary for the maintenance of the high character of our naval service that some well defined systeim, Calculated to create and secure @ clase of petiy ofiicers and skilled seamen, upon which the Davy can rely to man its fleets in time of War, should 0@ at once adopted, and carefully and rigidly supiied to the service, england and lrauce have long since recognizd thia Heoeasity, aad esch, tough in dierent (orm, best suited to tie @aracter of their government, has sucoesstuliy provided suitable plaus to accomplish tne desired result. We can proutably study aod Jearn much from the practical working of both tue French aud Englisu systems. England, wiih & navy many times larger than ours, by 1neans of her training ships, continuous ser- vice, good couduct vadges, long service medais, ratuivous ouctits, longevity pay and liberal pea- sions, has now a full aud unfailing supply ol excel- lent seamen during peace and an adequate reserve to draw (rom in true of war. France, with @ naval force in time of war quite equal to that of Great Britain, has her maritime conscription, suited slone to (hat country, but Which rally suppites her uavy with good men, Beyond the “honorable discharge” which seems to have been bestowed indiscriminately hitherto, and @ hailway pension, our navy holds out no in- ducemont for sailors to ship, especially while tue merchant service tempts tiem with increased A more liberty aud the chance of promotion to the po- sitions of petty oflicers, It is necessary to devise some further means by Which to make our naval service popular with sea- eo aud to enable us to expand agequately in case of war. . Of jute yoara great attention haa been paid abroad to the training of boys for seamen and petty oMecers, ‘The system adopted has been long enough in opera- tion to enabie ita full benefits to be uuderstood, Both England and France are now reaping ite ad- Vaosages in the possession of a One body of peity Oilicers and leading seamen, who, reared i the Ravy from their youth, are familiar with fits disci- pling and its traditions, who belong to the service as Touch as do the officers, and Who look to it as their ‘ocoupation for ike, On several occasions We have attempted to intro- duce the apprentice system into our navy, but it bas never made any great headway. Never properiy fostered and encouraged, it waa diverted from iM intended object, and latierly substanuuilly broken up by the law iimiting the number of seamen in te navy to 8,000, ‘rhe importance attached abroad to the training of boys for Lhe naval service is manifest by the number Of vessels @mployed for that object. Kngiand nae thiryy-one national vessels devoted to the Purpose of nautical education, aiming mainly at obtaining good Potty officers and seamen. It 18 only the most intelitj gent and enterprisivg Of the naval apprentices who Work their Way to the positions of boatewalus and gunners, the exent of their ambition . I would not blindly follow the example of any na: on, but some attention shouid ve given to the sub jock of bringing the personne of out uavy up to @ higher atanuard. inthe Freaoh navy the crews are native born, and in that of England they are made up of Engle and Americans, willie the coamopolilan character of the crews Of some of our sbips slows the native element poorly represented, it is Important that ® navy so small tn number as ours shoud Contain superior material of all kinds. those “wails of the ocean’’ who are now tn any navy and now in any merchant service have litte or no hove of conniry oF feeling of attactment for the fi ‘They are only heid ia the service by the slender tie of temporary convenience, necessity and subsistence, Osten sunpered py Geseriion oF aie | acted for their benefit and never to be renewed. ‘This class now so ceeds and preponderates over Lust Known as ol “old mag-o-warsmen” ag Lo give a very undesirabig: cbaracter to the service. rele For the improvement of the personnel of the na’ I would suggest tbat some plan be devised to pecans to the service i> best men now in It, just falling away through curcicssness and Gnd to raise up and educate a new class of warrant and petty officers. aliuiag to secure by thig means @ suflicient number of nit ¢ born seamen supply fo and to nave & large reserv ways emergency. In our coass squadton Yeoggentes in the plan of naval establishment bereto anueaed, we should en- dervor to combine # trnimug schvol and a feet for home defence, familiarizing our o.lcers with our coasts and harbors and providing 8 disciplined — of petty oficers and seameu to man our iron- clade for coast defence at the shu: test notice, This squadron would also {orm a reserve from which our ships could be manned as they were Atted oyt for service abroad. 1¢ 18 aiso highly important that some plan should be devised by Which ali seamen belonging to tue United Staves may be “registered” 1u such a manner that they could, in time of war, be at once designated and cailed upon, Notwithstandins all the laws en- the “protection” they receive, the United States government has no con- trol over our seamen in time of war. A civiliam may be enrolled in the militia and is sudject to call, but no authority exists by which asaior could be cailed to goon board snip to protect our harbors Were an enemy thundering at our gates, During the rebellion our navy required some 60,000 men, and the government ouly succeeded in vessels to sea at great cost, Mounties were pa the rate of $300 or $400 per man. udvances made on pay and local and State bounties added, The whole fingle seaman. “Ine precedent, tus established wi seaman. The p len thus estanlis! be referred to hereafier. It tucreiore becomes necessary that some meani id be devised ta rotection 5 bring the seamen in this to its p) ta time Of war. Tue wi not object to the Payment of suital antes unt mi provision for the family of tue sa lor, provi the government could certainly secuce us services When bie this end every seaman on the seaboard and om, the lakes should be registered, aud means secure to the country, on some terme, in time of war. - I take occasion, in this connection, to draw atten-- tion to our mepcantile inarine, ua to urge some Bo- tion by Congress to protect our seamen from “rune ners” and “land sharxs’’—terms uvt Laapplicable te class Of men engaged in iuruisuing seamen to merchant vessels. No elass of wu ure more cruelly treated. The evil ig on the incresse, and a situanle © fomedy can only be furnished by national jegisia-~ 101s The syveein, adopted by law in England has the effect of sec their mercantile marine the best British and rcan seauen, and leaving the Worst to seek service elsewhere. ‘Tho English law to which I reier has been in operation upwards of twelve years. One effect of it lus been to abolish “boarding and shippiug masters,” who shipped drunken and Worthiess mea. No seaman can now be shipped in the British mercautue marine he can show an honoraole discuarge from his Tast ship. Tnis rule is strictly enforces. Under the ope- ration of this iaw, our native boru seamen are ly eaving our merchant sulps und seering sbroad, where they get better pay and have better asgocration. 18 & matter of great importance to us, as it directly affects our couwerctal interests, as well as the materia: from wuich we are w draw our naval force. By adopting as far as practicable a system of regia- try and enrolment for active and reserve seamen, induced, if need be, by liveral, periodical advance of clothing and money, Aud & judicious system of “furloughs” and “pensions,"? ‘ion service honors’? and rations, and bounties when necessary, we may do much towards the speedy resioration of the per sonnel of our navy, and by aduing 10 tos a regular system of traiming.for petty otticera aud first class ts ancient igs aud gory may be main- [ an NUMBER OF MEN, Great inconvenience nas been experienced from the restriction of the number of meu of all clagses in the service to 8,000, ‘tis numver was reqi to man the ships in commission, and, ham; by the jaw, the department coud not provide men to be ready for relief when needed. Crews had to be aischarged before those wav were to take thelr Place couid be enlisted; and ships oruered home from their stations before the mauuiog aud organization Of those Which were to reueve tue, The loss of eMiciency through \us is readily seen, aud the inconvenience wil be more severely felt tf the number of our slips in cowmission is increased, The estimates for tno next sear are made on the basis of 12,000 men, as ihe suaiiest number for the proper performance of the work required, I trust that this increase will be authorized, INTBROCEANIO CANAL, ‘The great importance of tie coustraction of a ship Canal across the Isthmus of Darien has been con- Gtantly before the attention of tue Uepartment. Now shat the Suez canal has been opened for navi we are doubly stimulated w such evoris as Wi! to the success of our owa great enterprise, It is scarcely necessary to offer arguiuent upon the value of such @ Work in its effect upou commerce, through commerce, upon civiliza.ion turoughout the world. The pie mund fully accepts and appreciates its value. But we have reached we utmost hmitof utility in the mere study and discussion of the sub. ject. The time has come for acviou iu the Geld; and We are well informed as to the direction which this shouid take. ‘The successful surveys hitherto made on that part of the great isthmus lying bewwecn Lehuantepec on the north and the proviice of Cavco on the south, bave furaished us with yaiuabie iniormauion, Several of these Dave been accompanied by projects fer am interoceanic Canal, wnicn aave beer for a long time before the worid, The best evidence of their inability to command public confidence 14 tuat not one of them bas been carried into execuuon, altuougu several exeited a ater Were received with Javor. It is '. thererore, that until we know the whole ground, we shall never be able to determing the best route. When that route is kaown the must thorough exam- mation of the ground Will alone serve 10 wettle the question of feasibility so far ag that question depenas upon cost. It would be matter of lasung regret tf the people and government of the United States were anticipated in this great work Investigations should be at once commenced aud directed to that Part of the isthmus of which we are still almost ‘wholly ignorant, the department is preparing a plan of immediate operations, under the appropriatio, here olore made, by which, It is hoped, valuavie results will be ob- veined daring the present season, @ first report o1 the viliver iu charge of this sab- Ject 1s herewith submited, ADVISORY BOARD, At the last session of Congress a bill was passed through one house, but no; acied upon in the other, which provided for a bourd of experts to review tue action of tue bureaus and to advise tne Secre oo Se tue building, turulsning and equipment of My attention has been directed to the subject, and Tam of opinion that some syavew of the Kind pro- posed would be of great value ior tne information of the secretary OD matters pure.y proiessional and 10% the purpose of barmonizing aud concentra work ol the various bureaus. duese, under the sya tem of independent action formerly pursued, were ofen antayouisio in their kiews and not unfre quently came into dlrect couiiies with each other. ‘toe provisions of the bill reterred to, with some general moditications a4 to the composition of the board and the Manner of its appu!aliuent, would, L ae ara, the Wants of tue deyartment on this subject The board should, however, be wholly advisory, and without the power of inverferlag with the action of the Executive or his respousine representauve. RMLATIVE RANK. The subject of relative rank in tae various corps of the naval service ig one of mucu interest and some diMiculiy, Some of these corps are dissatisfied with their position under the jaw as it now stands, but Ubere t# no power in the departinent to change this, even should the propriety of such action be aamitted by all, Rauk can only be fixed vy law. This sab- Ject, involving at the same tume su many considera- lions of discipline, ficiency wad feeling, 18 now pressing for wise aud dispassionate legisl Bav- ing Iu view only the best interests of the serviee, A board composed of oiticera of high rank and long Mig repreacuuiug equally the various personi interests involved, nas been con- gtituted by the department to consider and report some proper sysem for the regulation of Lila matier, Pending the report of this board I desire to 6xpress HO opivion va tue wubjec’ matter of their consideration. sivuid Lucy be adle to ar- FIVe at @ proper conclusion, tue result of their labora wiil be at once communicatea Lo Cougress for their information, RETIRED OFFICERS, Mneh injustice to we many aimtinguished omoera On the retired list is now doug uy vue operation of the act of Mareh 2, 1867, requiring iue advance Of all oflcers on Liat list, ax tueir respecuve grades on the active jist are promoted. Mauy ollicers retired years ‘gO Ob ACcoURL Of tue condilioa vf Luoir Healta, OF for the good of the service, ure now reguiariy pro- moted under tha law, aud lake rauy With those WhO have goué en the tiat disuvied vy service or covercd With Lonorable Wounds, some of those former! retired, by long service in oiler tues or gall conduct during the iate war, wou deserve the Lepore of thelr profession; but it is not wo wita wl The physical and mental condivon of some officers readers their promotion worse tusa Toll it pas ovourred under the operation of the law refer- wtiMent Was required to send AN Ap- 4 grade to au ofhver long re pan, who hud repuered no service ) Contined us a driveding idiot in al neither value nor understand nialned the expresmom of ‘or. this Jaw will be so far modised ay ‘etiod 1B the application of iw oped thi bodes somo di rovisions. mT ihe year 186608 board, composed of admirais who iad. commanded squadrous during the war, with Admiral Fal ut aa president, was convened to report the names of ee.ned of advancement, under fot of April 1864, The board, after carota) conside a re} wirictiy — avcordin: to however, not lesced in, and the wae made quite idependentiy of taeir resuit ie that many Oficers consider thomeelves as unjustly treated, and a feeling of aiconteut exists, moat undesirable in the service. Some of tae cased affected by this action have been aiready acted on by the adiaipistration, Hutit w felt unat the real morit of each eawe can ouly be propealy judged by those who were personally coruigant of alt i cirgumetences #od that wo many