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Flag-officer Mervine left Boston in the Mississippi in advance of his flag-ship, the Colorado, and arrived in the Gulf on the 8th of June. Previous to his arrival, an embargo or blockade of the Mississippi River, and some of the principal ports on the Gulf, had been commenced, and has been since vigorously maintained and enforced.

North. In this crisis it became necessary to | to the Gulf for that purpose; and the Harriet act with promptness and vigor. There could Lane was ordered to Charleston, to take the be neither hesitation nor delay when the Gov-place of the Niagara before that port. ernment and the country were imperilled, and the Department took measures accordingly. Believing that the emergency not only justified but absolutely required that all the public armed vessels should be forthwith completed and equipped for service, orders were given to that effect, and in addition thereto the commandants of the navy-yards in Boston, New York, and Philadelphia, were directed to purchase or charter, arm, equip, and man steamers which, upon examination, might be found fit or easily convertible into armed vessels suitable for the public service, in order to support the Government and enforce the laws.

To carry into effect the proclamations whereby communication with the ports of the insurgent States was interdicted, and an embargo or blockade declared, it became necessary to concentrate almost all the naval force of the country upon the Atlantic coast, at and south of the Chesapeake Bay and in the Gulf of Mexico. This extensive line of seaboard, embracing an extent of nearly 3,000 miles, with its numerous harbors and inlets, was deemed too extensive for a single command, and the naval force to carry into effect the proclamation and execute the laws, has consequently been arranged into two squadrons. The command of the first of them, the Atlantic squadron, has been confided to Flag-officer Silas H. Stringham, and the second, or Gulf Squadron, is under command of Flag-officer William Mervine.

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As the Constitution declares that "no preference shall be given by any regulation of commerce or revenue to the ports of one State over another," and also that "no State shall, without the consent of Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for its inspection laws; and the net produce of all duties and imposts shall be for the use of the Treasury of the United States; and as in several of the States the insurgents had, in utter disregard and violation of these express provisions of the Constitution and the laws, assumed to give a preference, by unauthorized regulations of commerce or revenue, to the ports of certain States over the ports of other States, and had assumed, without consent of the Congress, to lay imposts or duties on imports and exports, and that, too, not for the use of the Treasury of the United States, but to deprive it of revenue, it became a duty of paramount necessity, acting under the express authority of the act of 1807, authorizing the use of the navy in "causing the laws to be executed," to suppress by an armed naval force before the principal ports, these illegal and unconstitutional proceedings; to assert the su

Before either of these gentlemen could appear on the station assigned him, Flag-officer Pendergrast, in command of the Home Squadron, established non-intercourse, and gave no-premacy of the Federal laws, and to prevent tice to foreigners of an embargo or effective any preference, by commercial regulation, to blockade, at Hampton Roads, on April 30. It the ports of any of the States. is due to this officer to say that he has rendered essential and active service, not only before but after the arrival of his senior on 'that station.

Flag-officer Stringham reached Hampton Roads with the Minnesota, his flag-ship, on the 13th of May, and entered upon his duties with such forco as the Department in so brief a period was able to place at his disposal; and illegal commerce by the insurgents, in disregard of national laws, is almost entirely suppressed.

The Niagara, which arrived at Boston from Japan on the 24th of April, was immediately despatched to New York for necessary repairs, before proceeding off Charleston harbor, whither her energetic commander was directed and promptly repaired, to prevent illegal commerce from that port. In the mean time, information reached the Department of large shipments of arms and munitions of war in Europe, destined for New Orleans and Mobile. Believing it of primary importance that this shipment should, if possible, be intercepted, and its landing prevented, Capt. McKean was directed to proceed

In carrying into effect these principles, and in suppressing the attempts to evade and resist them, and in order to maintain the Constitution, and execute the laws, it became necessary to interdict commerce at those ports where duties could not be collected, the laws maintained and executed, and where the officers of the Government were not tolerated or permitted to exercise their functions. In perforining this domestic and municipal duty, the property and interests of foreigners became to some extent involved in our home questions, and with a view of extending to them every comity that the circumstances would justify, the rules of blockade were adopted, and, as far as practicable, made applicable to the cases that occurred under this embargo or non-intercourse of the insurgent States. The commanders of the squadrons were directed to permit the vessels of foreigners to depart within fifteen days, as in cases of actual effective blockade, and their vessels were not to be seized unless they attempted, after having been once warned off, to enter an interdicted port in disregard of such warning.

The questions presented under this extraor- | sidered worthless, and are not included in the dinary conjuncture of affairs were novel, and list of available vessels. not having been in all their extent anticipated by our laws, some further penal legislation, especially in relation to the law of forfeiture, may be needed to meet the exigency and render the Government more effective.

STEAM GUN-BOATS AND SLOOPS.

The necessity of an augmentation of our navy in order to meet the crisis, aid in suppressing insurrection, and assist in causing the laws to be executed at all the ports, was immediately felt, and a class of vessels different in some respects from any that were in the service, to act as sentinels on the coast, was required. On the spur of the moment transport steamers were secured; but, though made capable of sustaining a small armament, they were not such vessels as would perform continuous duty off the harbors in all weathers. They will, it is believed, answer a temporary purpose for the summer months, but a stronger and different description of vessel is necessary for the autumn and winter. The Department, besides purchasing, has, therefore, contracted for the building of twenty-three gunboats, each of about five hundred tons burden; and has made preliminary arrangements for several larger and fleeter vessels, which shall not only aid in preventing illegal commerce, but be made particularly serviceable in suppressing depredations on that which is legal. Both of these classes are of sizes inferior to the sloopsof-war ordered by the last Congress.

The Department, in carrying the order of the last session into effect, directed the construction of two vessels at each of the four yards, making eight instead of seven to be built. In consequence of the great activity and heavy demands at all the yards to equip and prepare every available vessel for service, the construction of these sloops has been retarded, but is now being prosecuted with vigor, and we may expect they will be completed at the earliest possible period.

The authority for these purchases and contracts is to be found in the necessities and condition of the country and the times. The action of the Department may require the sanction of Congress to give it validity. If it shall be asserted that an error has been committed in thus providing for the wants of the service and the Government, a much greater error would have been committed, it is believed, in the omission to have made such provision under the existing necessities.

VESSELS IN SERVICE.

Of the 69 vessels, carrying 1,846 guns, hereinbefore mentioned, as available for service on the 4th of March last, the Levant has been given up as lost in the Pacific; the steamer Fulton was seized at Pensacola; and one frig. ate, two sloops, and one brig were burnt at Norfolk. These vessels carried 172 guns. The other vessels destroyed at Norfolk were con

These losses left at the disposal of the Department 62 vessels, carrying 1,174 guns, all of which are now, or soon will be, in commission, with the exception of theVermont, ship-of-the-line, Brandywine, frigate,

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Decatur, sloop, at San Francisco, John Hancock, steam-tender, at San Francisco,

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Purchases of sailing ships have been made for transporting coals to the steamers that are performing duty as sentinels before the principal ed with much loss of time, as well as great adharbors. It would be inexpedient and attendditional expense, to compel the steamers when short of fuel to leave their stations and proceed to the nearest depot, distant in most cases several hundred miles, to obtain a supply. In the absence of any proper or suitable stations or buildings for storing coals, hulks have been provided, to be anchored at some convenient place for the use of the squadron.

the command of Flag-Officer S. H. Stringham, The squadron on the Atlantic coast, under consists of 22 vessels, 296 guns, and 8,300 men.

of Flag-Officer William Mervine, consists of 21 The squadron in the Gulf, under the command vessels, 282 guns, and 3,500 men.

Additions have been made to each of the

squadrons of two or three small vessels, that The steamers Pawnee and Pocahontas, and the have been captured and taken into the service. flotilla under the late Commander Ward, with have been employed on the Potomac River, to several steamboats in charge of naval officers, prevent communication with that portion of has been rendered by this armed force, which Virginia which is in insurrection. Great service has been vigilant in intercepting supplies, and in protecting transports and supply vessels in their passage up and down the Potomac.

The flotilla, on the 27th ultimo, met with a serious and sad loss in the death of its gallant commander, James H. Ward, who died at his post, while covering the retreat of his men from the assault of an overpowering number of rebel enemies. In the death of Commander Ward the Navy has lost a brave officer, who has enriched it by military and scientific contributions, served it faithfully in varied spheres, and promised much for it in future.

The squadron in the Pacific, under the com- | Annapolis attracted the attention of the disloyal mand of Flag-Officer John B. Montgomery, consists of 6 vessels, 82 guns, and 1,000 men.

The East India, Mediterranean, Brazil, and African squadrons, excepting one vessel of each of the two latter, have been recalled.

and disaffected about the period when the conspiracy culminated. Some demonstrations were The West India squadron is under the com- made towards seizing the property, and also the mand of Flag-Officer G. J. Pendergrast, who frigate Constitution, which had been placed at has been temporarily on duty, with his flag-ship, Annapolis, in connection with the school, for the Cumberland, at Norfolk and Hampton the benefit of the youths who were being eduRoads, since the 23d of March. He will, at an cated for the public service. Prompt measures early day, transfer his flag to the steam-frigate rescued the frigate and Government property Roanoke, and proceed southward, having in from desecration and plunder, and the young charge our interests on the Mexican and Čen-men, under the superintendence and guidance tral American coasts, and in the West India of Capt. Blake, contributed, in no small degree, Islands. to the result. As it was impossible, in the then existing condition of affairs in Annapolis and in Maryland, to continue the school at that point, and as the valuable public property was in jeopardy, it became necessary to remove the institution elsewhere. Newport, R. I., presented many advantages, and the War Department tendered Fort Adams for the temporary occupation of the students, which was at once accepted, and the school, with the frigate and other public property, were removed thither. Although the numbers at the school are reduced by the resignation of nearly every student from the insurrectionary region, and a call of the elder classes to active professional duty, the younger classes that remain form a nucleus reestablish and give vitality to the institution.

The return of these vessels will add to the force for service in the Gulf and on the Atlantic coast about 200 guns and 2,500 men.

RESIGNATION AND DISMISSAL OF OFFICERS.

Since the 4th of March_two hundred and fifty-nine officers of the Navy have resigned their commissions or been dismissed from the service. This diminution of officers, at a time when the force was greatly enlarged, and when the whole naval armament of the country was put in requisition, has compelled the Department to send many of our public vessels to sea without a full complement of officers. To some extent this deficiency has been supplied by gen- Some legislation will be necessary, not only tlemen formerly connected with the Navy, who in relation to what has been done, but with a had retired to civil pursuits in peaceable times, view to the future continued success of the but who, in the spirit of true patriotism, came school, which has already accomplished so promptly forward in the hour of their country's much towards the efficiency and elevation of peril, and made voluntary tender of their ser- the Navy. By the existing law the appointvices to sustain the flag and the country. The ment of students can be made only upon recomDepartment gladly availed itself of the tender mendation of the member of Congress from the thus patriotically made, and received these gen- district in which the applicant resides, and in tlemen into the service in the capacity of acting case he omits to make selection of a suitable Lieutenants. The alacrity with which they person there is no way provided to fill the vapresented themselves for duty in any position cancy. In consequence of this regulation the the Government might assign thme, when oth- school has not its authorized number, for nearers who had been the trusted and honored re-ly one-third of the districts neglect or refuse to cipients of Government favors were deserting the standard, was no less honorable to them than to the profession which they adorned and the country which they loved.

ENLISTMENT OF SEAMEN.

The authorized increase of enlistment and the immediate establishment of naval rendezvous at all the principal seaports, with an abbreviation of the term of enlistment, enabled the Department to recruit a sufficient number of seamen to man the vessels added to the service

with almost as much rapidity as they could be prepared, armed, and equipped. Only one or two ships have experienced any detention for want of a crew, and none beyond two or three days. At no period of our history has the naval force had so great and rapid an increase, and never have our seamen come forward with more alacrity and zeal to serve the country.

be represented at the academy, and there is no legal way of supplying this deficiency from other districts, although the applications are numer

ous.

Congress must provide for this deficit, and it is, moreover, worthy of consideration, whether for a period, at least, the numbers in the school should not be increased, until a full complement of officers is supplied.

ORDNANCE DEPARTMENT.

In the ordnance branch of the service there

has been great activity, and the works at the Navy Yard in this city have been in constant operation, day and night, to meet, as far as possible, the extraordinary demands that have the Washington Yard, on the 22d of April, debeen made. When the late Commandant of clined further connection with the Government, and was dismissed the service, it was believed that the true interest of the country would be The Naval School and public property at promoted by placing the yard and foundry in

THE NAVAL ACADEMY.

charge of the efficient and capable officer whose reputation in connection with ordnance is national. If his rank did not, according to usage, entitle him to the position, his merit did. To obviate difficulty, and place that branch of the service in proper working condition, I would recommend that there be appointed an officer, to be known as the Director of Ordnance, who shall, under the Department, have the immediate supervision of the manufacture, description, and supply of ordnance for the Navy, in all its details.

THE OBSERVATORY.

The Observatory, for many years under the superintendence of an officer who had gained distinguished reputation in connection with the institution, was abandoned by him in a very abrupt manner on the 20th of April. On receiving intelligence that he had, without previous intimation of his intention, deserted the post that had been confided to him, a gentleman eminently adapted to the place, who had, moreover, been early identified with the Observatory, was at once placed in the position. It gives me pleasure to say that in many respects the change has been an improvement, while I trust that neither the country nor the cause of science will experience any detriment therefrom.

ACTING PAYMASTERS.

The additional number of vessels employed called for additional paymasters beyond the number limited by law, and the Department, under the existing necessity, appointed Acting Paymasters. Where this appointment has been necessary it has usually been connected with that of Captain's Clerk, who has been required to give bonds for the money intrusted to his hands, and his confidential relations with his commander have been such that it has been deemed a further security. I would recommend that there be an increase of the corps of Paymasters, or perhaps it may be well to have a class of Assistant Paymasters at a less compensation and with less responsibility. The minor appointment may be made a preliminary step to the more important office of Paymaster.

INCREASE OF THE MARINE CORPS.

It became necessary to enlarge the Marine Corps, in order that it should correspond in some degree with the general increase of other branches of the service. Under the authority of the Act of Congress of 1849, two additions have been made to this corps, which now consists of 2,500 privates, but the officers, except in the force composing the staff, remain the same in point of numbers as when the corps consisted of but 1,000 men. This number is altogether insufficient, and it is therefore recommended that there be an additional number created, and if the session is sufficiently prolonged an entire reorganization of the coros may be expedient.

MASTERS AND MASTERS' MATES.

A change or modification of the law regulating the Navy ration seems necessary to meet the existing condition of things. Nearly the whole of the present naval strength of the country is employed on a particular service, which extends along the coast, an effective force being stationed at each of the principal harbors. It is important that the vessels should remain on duty at their stations as long as possible, to guard the coast and prevent illegal There has been, from necessity, a large numcommerce. That they may do this satisfac- ber of acting masters and masters' mates aptorily, it is essential that the crews have fre- pointed from the commercial marine to meet the quent supplies of fresh provisions and other wants of the service. These officers, generally of necessaries conducive to health. The Depart-great experience and intelligence, and occupying ment has already so far innovated as to send forward a cargo of fresh supplies, and it proposes to continue thus to supply the crews of the squadron until the insurrection is suppressed. Provisions and stores will in this manner be despatched with supplies of all kinds that may be required for the subsistence and health of Communication with each of the

the crews.

principal stations will be established by these despatch boats, which will carry to and receive from the squadrons letters, convey recruits, bring home invalids, and while performing these services will also discharge coast guard duty.

INCREASE OF SURGEONS.

An increase of the number of Surgeons and Assistant-Surgeons is also recommended, in conformity with the suggestions of the Chief of the Bureau of Medicine and Surgery. A copy of his report is herewith transmitted. The deficiencies that at present exist will doubtless soon be filled, but the full complement allowed by the existing law is inadequate to the present requirements of the service.

the highest position in the merchant service, have voluntarily come forward and offered themselves for useful duty on board our public vessels, where they are contributing to the efficiency of the Navy.

IRON-CLAD STEAMERS, OR FLOATING BATTERIES.

Much attention has been given, within the last few years, to the subject of floating batteries, or iron-clad steamers. Other governments, and particularly France and England, have made it a special object, in connection with naval improvements; and the ingenuity and inventive faculties of our own countrymen have also been stimulated, by recent occurrences, towards the construction of this class of vessels. The period is, perhaps, not one best adapted to heavy expenditures by the way of experiment, and the time and attention of some of those who are most competent to investigate and form correct conclusions on this subject, are otherwise employed. I would, however, recommend the appointment of a proper and competent board to inquire into and report in regard to a

her.

measure so important; and it is for Congress to | lamented officers and crew who perished with decide whether, on a favorable report, they will order one or more iron-clad steamers, or floating batteries, to be constructed, with a view to perfect protection from the effects of present ordnance at short range, and make an appropriation for that purpose.

It is nearly twenty years since a gentleman of New Jersey, possessing wealth and talent, projected the construction of a floating battery, and the Government aided the work by a liberal appropriation. The death of this gentleman a few years since interrupted the prosecution of this experiment, and application has been recently made by his surviving brother, the authorities of New Jersey, and others, for additional means to carry it forward to completion. The amount asked is of such magnitude as to require special investigation by a competent board, who shall report as to the expediency and practicability of the experiment before so large an expenditure should be authorized.

INCREASE IN CLERICAL FORCE.

An increase in the clerical force of the Department is indispensable, and its organization may be in some respects modified and improved. The present session having been called for special purposes, it may be deemed inexpedient to enter upon general legislation; but the greatly increased labor renders it necessary that there should be a temporary increase of clerks, and I would, in this connection, and as a part of this improvement and addition, recominend an Assistant Secretary of the Navy, on whom might be devolved many of the details that now occupy no inconsiderable portion of the time of the Secretary, and from which he might be relieved.

The Levant sloop-of-war, Commander Wm. E. Hunt, sailed from Panama in May, 1860, for the Sandwich Islands, for the purpose of inquiring, at the suggestion of the Department of State, into the disbursement at those islands of the fund for the relief of destitute American seamen. She reached her destination safely, and the investigations were conducted by Commander Hunt at the ports of Honolulu, Lahaina, and Hilo. The last official intelligence received by the Department from the Levant was a communication from Commander Hunt, dated Hilo, Sept. 3, 1860. He expected to take his departure in a short time for Panama. Not arriving at that port by January, Flag-Officer Montgomery despatched the steamers Saranac and Wyoming in search of her. The latter visited the Sandwich Islands and various localities on the route, making every possible inquiry for her. But no tidings of her were obtained, although it was definitely ascertained that she had sailed from Hilo on the 18th of September, 1860, direct for Panama. All hopes for her safety have long since been abandoned, and it now devolves on Congress, as in previous instances, to make such legislation as may be just and proper for the benefit of the families of the

The following captures of vessels engaged in the Slave-trade have been made since those mentioned in the last annual report of this Department:

Bark Cora, captured on the coast of Africa, Sept. 26, 1860, by the United States sloop Constellation, Capt. J. S. Nicholas, with a cargo of 705 Africans, 694 of which were delivered to the United States agent at Monrovia.

Brig Bonita, captured on the coast of Africa, Oct. 10, 1860, by the United States steamer San Jacinto, Capt. T. A. Dornin, with a cargo of 750 Africans on board, 616 of which were delivered to the United States agent at Monrovia.

Brig Tuccoa, captured on the coast of Cuba, Dec. 20, 1860, by the United States steamer Mohawk, Lieutenant Commanding T. A. M. Craven.

Bark Mary Kimball, captured on the coast of Cuba, Dec. 21, 1860, by the United States steamer Mohawk, Lieutenant Commanding T. A. M. Craven.

Ship Nightingale, captured on the coast of Africa, April 21, 1861, by the United States sloop-of-war Saratoga, Commander Alfred Taylor, with 961 Africans on board, 801 of which were delivered to the United States agent at Mourovia.

The Cora and Nightingale were sent to New York; the Bonita to Charleston, and subsequently to Savannah; and the Tuccoa and Mary Kimball to Key West, and delivered into the custody of the proper officers.

CONCLUSION.

In discharging the duties that pertain to this Department, and which have devolved upon it during the brief period it has been intrusted to my hands, I have shrunk from no responsibilities; and if, in some instances, the letter of the law has been transcended, it was because the public necessities required it. To have declined the exercise of any powers but such as were clearly authorized and legally defined, when the Government and the country were assailed and their existence endangered, would have been an inexcusable wrong, and a cowardly omission. When, therefore, the Navy was called into requisition to assist not only in maintaining the Constitution and to help execute the laws, but to contribute in upholding the Government itself against a great conspiracy, I did not hesitate, under your direction, to add to its strength and efficiency by chartering, purchasing, building, equipping, and manning vessels, expanding the organization and accepting the tender of services from patriotic individuals, although there may be no specific legal enactment for some of the authority that has been exercised.

Submitted herewith are supplemental estimates from the several bureaus to meet deficiencies in the appropriations for the naval

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