p ( i V V being ninety per cert Th number ff letters cn. closing sums ol money les. than one du''r, lomat'od to tlie respective owners, was 18 Nil. cuntim n itn rjrrf jrato amount ol fotiu2 &6. Ui these, U.llo, coo tkimi g yaooi i;a, wcie ui-iiveied? The nu.nui r ol loners oonttiumg capers of raluo Other than mony, a deeds, bit of rxohanvc, oratts, c hecks etc , received, regislerod and returned for rffl very to tiio 01 cm, wi 20,010, and the nimi nal ra'ucof tuo enclosures therein wa j?7,8it'i.8Ml(;8 Xhe umnlier tit theno loiters delivcrod was 21053, lclng 15 per cctif. The Lumber ol letters and packages eontalng pho togiopbs, daguerreotypes, ai d amolcs of Jewelry, was t7,M0, of wlnoli 58 572 wero Font ont contain, inr, 101 tho most pan photographs and daguerreo type' ), and 42,74a, or 8:1 per cent , delivered. A lares number ot packages containing miscella neous aitic'es, for which no owners could be tound, were so d at public auction, tho proceeds amounting to 3&48 14. Ibe Dumber of letters returned, onnipnel, to ibieign countries daring the year was 193 751 . the pmount of unpaid pontage on which waa 99879 40. 1 be number reoeived from foreign countries in the same condition during tho same ponod was 72,41), and tho amount ot unpaid postage thereon $2039 20. 1 he number of Congressional and ollin'at Papers returned to the proper departments was 17.800. Ibe number of letters enclosing soldiers' dfa Charge, and o;b"r military papers sent to tho Adjutant-General's office, e'e, was 8918. Tho number or ordinary letters remallod to the VhUrs was 1 740,158, being an increase or 583,472 over the number 01 the same character returned the jear previous. Ol those 1 275,845 were delivered. 'Ihe whole nnmb'-r of letters ot all descriptions Bent out during tU year was 2 093,444, of which 1,602,224 were dollveied. being 77 per oout. Ol the number ot ordinary letters sent out for do Vvery sinci the 1st of July last, from which time, in accordance with th i la v, they have bien returned tree,83 per cont. were dolivered, boing an increase ol 17 per cent over the percentage dolivoiod during the same period 01 the yeir previous. About 2 600,000 U.nd letters bave boon destroyed during the year. Ol these upwards of sixty per vent, were ordinary business circulars, advertlso ' merits ot lott' ry and (tf fc enterprises, no ices of cor porate rocielles, and tradesmen's bills; theiemainder being comuosed of letters not signed, or 10 written S to be unintelligible An investigation into the cause of the non fleliyety of letters coutirins thn statement made in the last report, that three-fourths of the whole nnm Jterfaledto reach the panics addressed through lauits of the writers, and it bas been ascertained that the proportion of letters tally addressed re turned from offices where tho free delivery is estab lished is less than throe per cent. From some of these offices returns have boon received, in which not a single letter so addressed appears without a satisfactory reason tor the non-delivery. From 40 to 60 per cent, ot dead letters are returned from these ollioes, and it thns appears that a more careful attention to tho details of address on tbe part ol writers, together witu a more extensive use of re quest envelopes, would mat"r!allv promote tho cer tainty of delivery, and greatly diminish the number of dead letters. Postal MoucyOrdfr System. The number ot money-ordor offices now in opera tion is 760, being 847 more than at the date ol the last annual report, and measures have recently been taken to establish 67 additional offices in the I'aoirlc States and Territories. Ibe number ot orders issued during the year was 243,009, 01 the value of S3 977,259-28 The number paid was 233 124 of thevaluu of. . . . 8 851,839 49 To which is to be added amount of ordors paid to purchasers 62, 050-73 3,903,800 22 Exess of Issues ov . r payments. 78.869 08 From the establishme. t of the system on Novom. tier 1, 18C4, to July 1, 18 a period of eight months, tho orders is.udd amoui t to 1 800,122 62, and the ordeis pa d and repaid 1 813,677 08. On com paring these amounts wit. 'he corresponding trans actions ot the last fiscal - ar, it appears tnat the business bas beou almost ti led. Tbe average amount of eu , i order Issued during the year was 916-82. Tbe whole nunuer ot du "'cates was 1(32, of -which 1124 were issued to rej oe originals lost in the mails or otherwise, 296 we. . in lieu ot orders invalidated by age, an J 12 to replace orders illegally indorsed Tbe sum of 92 710.685 53, being surplus funds mocruinc at the smaller offices from the transao ion ot the money-order business, was transmitted to UrM-olasa ollices used as depositories, either by national bank drafts or in registered puckao-e h mail, the receipts and expenditure lor tbo last fiscal year, as adjusted and reported ty the Aud tor, wei e as to Iowa, via. : lieceipts : Fees on orders Issued $35,799 0? T-rem.utn received on exchange 8 08 83 8J3 00 Expenditures : Commissions to postmaiteis $11 432 49 Clerk hire 14 910 60 , Books and stationery 1 224 59 l'remium paid on dratt 25 Miscellaneous, including furni ture and fixtures 608 41 Remittances lost in the mail 6o3 00 28,604 27 Excess of receipts over expenditures. . 7,133 79 This sum represents the gross amount of revenue derived lrom tbe transaction of the money-order business tor the past year, and if we deduct therefrom tbe i amount of the deficiency in the recoipts a compared with tbe expenditures dur ing the period of eight months ending Juiv 1, 1866, as stated in tbe last annual report, viz.; 7 047 97 There ranoalns the sum of. 90-82 as tbe proceeds of the system lrom its commence ment up to tbe close ot tbe last fiscal year. A remittance of Mrplus money-order funds, amounting to 9617, snt in a registered package from Mutohez, Miss., to St. .Louis, Mo., was lost by the destruction of the mail steamer City of Memphu, on the 81t ot May, but m consequence of delay In ob taining satisfactory evidence that this sum bad been duly counted, registered, and mailed, and had sub sequently been totally destroyed, the claim of the postmaster at Natchez to be credited therewith was not allowed by this Department, and transmitted to tbe Auditor in time to be inserted in his report. Tbe foreign postal service bas grown to suoh mag nitude that increased care and responsibility fall upon those having tbe direct charge of it) and I respectlully ask that authority tie given to appoint a superintendent of foreign mat's, and an additional - clerk for that branoti ot the service 1 also recommend that authority be given to ap . point a superintendent ot tbe opening and distribu tion o' dead letter The law regulating the lranking privilege ought, la mv opinijn. to be amended. I do not think the Jirinlege should be abolished. I think it a nuoessity or the different dooartments, as weil as lor Con gress but great abuses have grown up under it. To avoid frauds and a misuse of the privilege, I recommend such a change in the law as to require tbe written signature ot the pen in exercising the privilege upon the matter franked; and to relieve the beads oi department and bureaus of great labor, that a franking clerk be authorized by law for each department ot the ttoverninenr, with the right to ttank a'l mat-cr per atiilng to the depart ment lor which be is appointed. Kespc-cUully suXmittod: ALEXANDER W. R.AMIALL, l'o.'tmestur-Uoneral. Ibe 1'ies'dent. THE NAVAL ARM. OUR FLAG ON.' DISTANT SEAS. Jhc Perfection of American Iron-Clads. HOME RESOURCES OF THE DEPARTMENT Jtiort or Hon. ;ileon VOIIpn, Secretary !' l lie ,av JJatv Departmknt, Iiecember 8, 18ft). Sir: I have the bonor to present the annual report of the condi tion and operullons ot this Department and of the navy during the year. Tha reduction of tbe naval lorce at hoina aud the eUablthlnuent and reinforce ment of the squaili-ons abroad, with the repairing find i lacing In eilMent condition tha vessels and xnuelin err which had become worn and detective by lung rid constant linrtf usnte, lutve continued to be Object ot paramount Importance In the admlulsUa X on ol nuviil nllnii s since uiy lust annual report, ;' ei-nl Dxlilbit of the Xavy. The totul number ol vessels In the navy at this time Is two hundred and event j'-eiubt, armed wltti two thousand three hundred and Ufty-iine guns. Of tlmne there his In coiuiiii-lon and on uclive iluiy one liun Ured and (illeeii veaels, carrying one thousand uud ,"l'"eytoloV!nB8'irenerl exhibit elves In dolnll a alalen eat of Hie clmructeraud condition ol the nitvul ,,,,ce: " - .Vim.-,,-. ,,. Veeis In Miundron service. ... ;,( ti-'l Vtfs-l-l-i in. i'tin.i. hervice I' tts ?nE -?-AlLY WWG TELEGRAPH. rniLADELPIIT , TUESDAY, DECEMBER 4, I86G. Vi'W'ii tin sei vice ftt home slntlons, In c ikIiiib recc -IvIhl' uliipi, Niivftl Aeu- deinv, nnvy yard duty, it-e Tt'inl miiulH-r ol veisels in couiims- -stfin Iron-ciiiil vi-hsi-In IhmI imi 1 n.n-eliii vessels nt ( o i l I - I p. 1 , Me tin vessels nut compleinil Snlllng vessels not compleleil (old Una-ot-lmllle snips A oodi-ii vessels laid up, repuliliiK, llt llii(j lor ceu. and lor hftle 2 '2 10J1 117 40 719 'i'etul nlnnhr-r of vessels rm.1 arnns.. . srs 2.1M The totnl iminlier of Seninen In tho nuviil and cuuat service la uboul lu.iniineii. I The Mqiinli-oii. In the spring nfisfi.-,, meunres were taken, while ro-dui-liiK our iihviiI lorce ami distmniling nor Idnckiiding diets, to re-establish our lorelgn siiinrtroiis, wliicli hud In-. -n n-eallu 1 In tlie spring nl I I . r..r Imir yenrs our cniiiiiierciiil Inleiutl Imil neoessnrily I)0.m'i left lilini.st wilhiinl oilier prole, lion llinn sucli hs could 1)1 rendered by n few Isoln'ed erulers, wlm-li reiiresonteil us et remote points. Hut the displny ol the ling of the t nlnn In fi'i eign ports mid on distant sens, even lit long Intervals, by a roving iiinii-ot-w nr, whs an admo nition ol the naval power ol t lie itepuliliu.wliicli, tliougli en jdoyeil for ihe lime in aiding in suppress ilomeilic dllllrultli s, It whs well iiiid.-rsl.Hid would tin prompt and eflluient in vindiciUinu the rights uud luieresta of our rniintryinen. lit fore tlie i lose of the venr In w hleh Hie Rebellion was suppressed, our foreign squadrons w ere re-esl iili lislied, mid the ndiulriils in ( oinmiwid on llieir respi.'i; tlve stut lo ns. 'I'hese siiuiKhons lmvo liuen from lime to time augmented, anil, wltn a dogree of activity and energy never before exhibited, luive, by one or more of their vessels, during tho year vlsltoil nearly every principal noi t of the world. Tlie. vlows of tlie Depart ment eiiiining nctivlty, and the exhibition of the Hug ol our iiiiv v wherever our commerce penetrated, have been faithfully observed, and the reappearance of our men-of-war has been welcomed, not only by oureoun trvmeii.bnt by the people of every nation which they liuvo visited. Eiiropenu Siinilron. The restrictions Imposed upon American nrmeel hhips during tho Kebellion by the Kieitt iii.u iliino powers of Miiithei u Kuropi) virtually excluded our naval vessels from the pons of tho-.e countries. When ll ar-.Hilinlral (loldsborongli received bis orders, these restrictions liad not been removed, and avoid ing lor the time the pons and countries lrom which our meii-ol-wur had been excluded, he established his liead-nuarlers at Lisbon. 'J his siinil ron. which Is still commanded by Ttar AdoiirKl lioldbboiough, Is composed of the followiug vessels: Gam. ' Oui. Colorado, flag-ship 4H Canandalgun 0 'l lconderoga II I'rollc 6 AiiKiistu in Miunlououiiiu 4 hwutarn 10 Uuard 3 (Shamrock 10 lno 3 The limits ot this squadron embrace the Mediter ranean, the western coast ot Ktirope, and Africa us lar south as hi. Paul do Loundo. Ureat activity has been exhibited by most of the vessels, some or which have visited the principal porta oftheltallio and Mediterranean, as well as those on the Atlantic Ex cept when Important public Interests or some una voidable circumstance bus rendered their presence In port Indispensable, the ships have been almost con otan'ly cruising. In pursuance of Ihe system of active operations adopted by the Department when re-establishing the foreign squadrons, lengthy auchorugus and cruising collectively have been uvoided. These naval representatives ot our own country were warmly welcomed by the di Herein nationalities, end more extended commercial and friendly inter course was invited. The appearance ol' our uaval ves sels gave conlldeuce wherever they went, and en couragement to the Immense emigration which, like an irresistible current, Uowg with Increasing volume westward, especially from northern I'.urope. On Ihe decks of one or more ot the vessels of this squadron the sovereigns, or some representatives of the reigning lamilies, and the people, of most of the imirltlme powers ot Kurope have, during the year, re ceived ana Interchanged courtesies with our oilicers. All expressed their gratlllcation with the reappear ance ot our Hag lu their walurs, and extended their congratulations on the return of peace and the resto ration ol the Union. When the usual tranquility of any of those countries bas been disturbed by wars and revolutions, the appearance of our flag has imparted security to our citizens there located. Iu the early part of the year Ihe disturbed condition of t-puln. and during the sum mer the war between Austria and Prussia and Italy, excited lively Interest. An ample Torce during these perloos was maintained on the Spanish coast, aud the Uernian ports were visited. When agitiuions and re volutions ceased in one quarter, uud peace was re stored In the other, the uctive movements of the squudron were resumed. The Ticomlrrotia passed the Dardanelles and went up to the capital of Turkey on the 7th of (September, 'i he anchoring of a man-of-war of bor dimensions In the liospliorus, before the palace of the Sultan, had not been permitted to the naval vessels of auy other power since tlie treaty of ISM. The officers wera re ceived by tbe Hulian and people In the most cordial manner, and tbe vessel was visited by the Grand Vizier, his Minister of Foreign Affairs and others of bis Cabinet, and by the members of the diplomatic corps at Constantinople. On her arrival at Tripoli on the 18th of October she was received with marked ronrtw 1,1a Itljtlnioo lrl IwU U. m cluls 111 the place. Our Consul there reports that the visit had a most happy eff-ot, none of our men-of-war having visited the place for several years. The shores of Greece, the 8yrlan coast, the Barbary States and the settlements on the northwest coast of A frica acces!-lile to our sbips-ot-wur, have received due attention, and friendly relations have been culti vated in all those quarters. The large emigration to onr shores from Germany and Northern Kurope reudered it important that special attention should be directed lo that quarter. Karly in the spring the Department had made pre parations lo seud out Hie tmreted Iron clad MianUm mah, accompanied by the steamer Auyutta, to Join the Ku ropes ii squadron. Before these vessels were ready to sad. Congress passed the resolution approved .May Pith, lsoo, greeting the Emperor, and congratulating the people of Kussia on the escape of His Imperial Majesty from assassination. A request that tlie Presi dent should forward a copy ot this resolution to the Kmperor. followed by the authorized ap pointment of nn additional Asslstaut Secretary ot the Navy for six months, led to the designation of Assistunt Secretary O. V. l-'ox to bear to his Imperial Majesty the resolution of Congress. Jle was author ized to take paHsage in the JUumtononuih, which ves sel, with her companion, the Aitfiiirt. w ai directed, before reporting to Keur-Admlral Ooldsborough, to proceed lo Cronstadt, to carry out the purpose ol Con-giei-s. In compliance with these ordors, those vosiels have visited the Baltic, ond have also entered the principal ports from Cronstadt to Lisbon, Including the cnpltttls or Sweden and Denmark. The reception ol this force wherever it has appeared, and especially In Kussia. where all classes were im pressed with the friendly sympathy evinced by our Government toward the Emperor and people, was ot a most Haltering character. Tlie Assistant Secretary and the oilicers of the navy were welcomed with les tiviiips snd extrordlnurv courtesy uud attention for a succession of duvs, not only at St. Petersburg but at. Moscow, mid throughout the empire, and wunu friend ship wns everywhere manifested for onr country uud (?rcat courtesy lias been shown the squadron In tbe ions of those countries from which our men-of-war md for several years been excluded, aud every faci lity has been extended lit their dock-yards and else where for the accommodation uud repairs of uny of our vessels. Contagious disease has prevailed at many places, which our vessels could not visit unless required to do so by absolute necessity. In order that the activity and service of this and all our squadrons mav bo known mid appreciated, an enumeration ol the ports wliieh they have respectively visited Is given. During the year the flag of the navy has be m shown at Uueenslowu, Kingston, Hellust, Liverpool, Swan sea, l-'almuuth, l'oit.snioiilb, Southampton, Plymouth, Hieernihs, Sptthead, t'hutliam, uud other points in Great llrlluin; Marseilles. Toulon, Jlrest,. Cherbourg, I.'orienl, ltochclort, I.oiinonl hour Jlordeuux, aud Ylllu l-'i unca, In 1- ranee; JSarccloua, Muluga, Larlha gonn. Corunnii, Valencia, Clbraltur. Torragona, Cadiz, l'ei-iol, Port Million, Vigo aud other ports in Spiln; l.l.-bon and Oporto in lorlugal; Messina, Pulermo, and Syracuse, In Sicily; Naples, Hpezla. Leghorn, and Civitu Vecclila, in lluty: Miiu, Athens, and I'lneus, In Greece; Constantinople aud the islands of Cundiu and Cyprus, lu the Turkish dominions; Syria, Bey roul, Trieste, Venice, Alexandria, Tripoli, Tunis, Algiers, Tangieis, Antwerp, klol. Hamburg, Flushing, Nleuwe-Dlep, sierra Leone, Monriivla, tlie Cape tie Yerd Islands, the Canaries, the Azores, Porto Pi-.tya, St. lugo, the ports on the Klbiymd Weser, In Gei-iimuy, uud many others of lesser uoto. m Asiatic Squatlroii. The Asiatic Squadron embraces tlie eastern oust of Atrka and Asia, and tlie Islands which stud tho seas and ocean eastward of the Cape of Good Hope. The squadron is commanded by Ki-ui-Adiiilrul 11. H. Hell, who reached Jiutaviu. within Ihe limits of his com mand, on the '.Mill ol December, IWB. The voxels of the squudron are: (7in. Cliins. Hartford, Hag-ship..... i' Shenandoah Witcliui-elt liij Wyoming 7 Monooiiey U):8upply Ashuelot luiKollef. . 3 All the open ports ol China, Including some which no American mau-of-wiir had ever entered, have been visited by the vessels of this squadron. Heir Atliniiul Hell in April proceeded to ('union, where he had a friendly reception uud an ugreeahlo interview Willi Ihe Governor-General oftheOuantiing provinces. The disposition manifested toward our cuuntry and countrymen was of ft gralilylng character. Unlike the great maritime nations of Europe: llieCnineiO Government and people guve no euio-irugeiiient or recognition lo tlie rube is id uieir war upuii mu iii.uii. Ainericiiu residents In Hint lar distant quarter of the globe have not been interfered with lu tholr leal pursuits, or molested by the natives, save in a simile Instance. The exception was that of the United Sliues Consul at New Chwaiig, who was assaulted by a ptuiy of dissolute characters. The tWintntn-tt was despatched lu June to that port for the purpose or so curing Ihe arrest ami piinlshnunt ot the parlies who were ennagod in the outruae. Ly tho considerate, yet deteiinined course of Cimujniiniler TownsHiid, llio trial ot eight of I horn was scoured uud convl.dioii fol lowed. Thouinlb, und chief Instigator, whom the nut horllles seemed powerless to arrest, wus seued by I oiiiiuuiider Townuend and delivered over tor trial. While walling the decision of the courts in the case of these outlaws. Commander Townsend. at the re quvht of the Chinese otiHlnm authorities, availed hliu sell nf the occasion to survey Hie bur at the mouth of the Man river. The channel was ascertained uud buoyed for Ihe beiieut of tho commerce of the world. 't'lie lucreuse or 'renewal ol piracy In Ihe Chinese wuters bus rendered the Institution of decisive bod vigorous measures for its arrest n necessity, ftear Admirul Loll bus rteen till I v mntu.riv. il to si-t. in coii teil wlililne i.aval coiniiuinii,.i of oilier e.nl inns on Unit staUwu.ln the bupp: psnif..i t.l pi!ii'.ui o .rt la iois, I Tho Pinn.Il number of onr vessels In thoss waters as riuupHi-ed with Ibe English and l' Tsneli fleets -Bi well i s the fl':" ol our ships, has not iiilm.'"-eil of enlarged and complete i'rrniu:eim)n's for puisuhrg the laivles deoiedal'-is, who seek slielter among tbe Mioiilcd nnil mi si iiuric oe wateis. A class of smiiller vessels will scon reinforce this squadron. In the meiintim s, Il;ir Ann.lrnl Lell Is giving tils earnest eff irts to this sr.-at i b i el, nnd the fi rce under 1,1s command Is nn'l 'r i ret is lo pursue wivh vigor nnd destroy all idr.iuoiil vessels, und deliver the cantureil Ireebjoturs to the au tlioilth s in tbe nearest consular ports. Luring the summer, Iteur-Ailmlral It ll has visited tin-(-overnl open ports ol Japan In his Hag-ship, the lli rfinnl. taking with him onpor more ol the o.her vessels ol his squadron. lie passed through tho t-tinils ol Simonosakl mid the inland sea, when no Aineilcan man-ol-war bad been since lsifci. There were apprehensions tlnit he might meet Willi some opposition in that quarter in consequence of Hie rebellious Hltttiidq of the Prince or Nugotn towards the Government of the Tycoon nnd the cAl-tence of war between them. He met w ith nope, however, ami Ihe pass igo was made quietly, w Ithi. lit holding conimunlculloii w ith tho citizens of Hie disaffected province, In accordance with his detnr II I m ii t li ii announced to the Governor of Nagasaki belore departing from that port. This pass Is an Im poi taut one to Hie commerce of the Unlied states, and Hie UNSiigo of our vessels through It. during a season nfliostllity, Indicates thai there Is u disposition on tho pnitofthn people of Japan to reciprocate thn kind feelinpn w liich w e entertain towurds them aud to ru spei t uur flag. Tho nianifclatlnns of tho Japanese towards Americans luive been more friendly than lo anv other nation. While Europeans were excluded lrom Intercourse with thiju, they entered In in 1 1 ful ton with the 1'nlted (states and opened their ports to our trade. It Is Important In every point of view that these amicable relations should be culti vated and sustained, ami that there should be no ag. gross i vn act on our part to Interrupt or disturb them. In the not distant fuiure II w ill be of Importance to Hits country to secure the commerce of Japan, a'ld we should not permit ourselves to become complicated in ihecontrnverFilfs of other powers with this peculiar pe pie. Such Is the policy of this Department. Tho Shnuiniltuih on her way lo the Asiatic coast visited n'ahy points, nti'-r leaving Ihe Cape of iinu t Iloie,iinli'cqtic!iied by vessels of the Hulled status Navy. 'I he Intercourse between the ottleers nnd the authorities 111 all instniiccs was mutually pleas int. While at Tnmainy, in the Island ot Madagascar, (' ip tain Cioldshorongb, In company with tho United states Consul and a large number of ollleers of the ,V iimirlnnh, made on ollicial visit to the Governor of tin province, by whom, surrounded by his counsel lors, he was received in the council chamber. Tlie t-ovei nor expressed his grnl Ideation and pleasure in sceoig nn American vessel-oT-war for the first time In a iort of Madagascar, and offered any assistance in his power which the Vessel might require. The treat ment received frum the uulivos was most kind and hospitable. Proceeding up the Arabian sea, the .SVnnii'foai an chored in the cove of Muscat on the 13th ol Septembor last, where she remained until the 18th. Immedi ately on the arrival ol tho vessel, an olllcer came on board with the compliments of the Iman, toextend w elcome to the port, to offer the facillilc or the place, and to express the desire of bis Highness to e xchange the customary courtesies. A salute of twenty-one guns was tired by tlie Mrnanrtimh, aud promptly re turned. Tbo commanding olllcer and others ot the vessel called on the Iman, who, surrounded by Ilia Governor of the Province, the Councillors of state, and several military officers, received them In a dig nified manner. The I man was particular In bis In quiries us to Hie health of tbe President and the peo ple ot the United States, with whom he hoped to tie always on terms of peace. There are no American residents at thli place, but our commerce, which we desire to encourage and extond to every sea . wai not alwent lrom this distant quarter, there being two ves sels at the time belonging to our countrymen waiting cargoes lu Hie cove of Muscat, In May last the head-quarters of the squadron were removed from Macon and re-established at Hong Kong, which Is considered the most convenient and best adapted locality tor that purpose. The following ports, onionj others, have been visited by the vessels of Hear-Admiral Hell's command: Macao, Swatow, Amoy, Eoo-Chow, Ningpo, Shang hai, hampoa. Canton, New Chwang, Choe-Foo, Tang-Chow and Taskee, in China: the ports of Japan: Manilla. In the Philippine Islands; Ambong, in ii ir neo, ond Batavla. On her way out the Stienni'lnni touched at Euyal. Funchal, Santa Cruz, Porto Grande Porlo Praya, Simonstnwn, Mauritius, Tamatav, In Madagascar: Mahe, one ot tbe Seychelles group; Muscat, In Arabia; Bombay, Ceylon, Calcutta, Pe naug und Singapore. North Atlantic SnjnftUroii. During the greater part or the year the service re quired of the Navy on the North Atlantic coast and in the West Indies has been divided between three squadrons, but on the 1st or November last the Atlan tic const aud West India squadrons were consolidated, and thereafter designated the North Atlantic squad ron, Ihe combined forces being commanded by Hear Adml .,1 Puliner. The vessels are as follows: Gim. Ourw, Ilhodo Island iflag ship)..l-2! Monongahela M .. iseeolu lo ; 1 le Soto 9 Saoo 12, Rienvllle B M,in2w.::::::::r::vvf3 XWtfffiaugi...:.......;...;.... S Aguwaui 10 1 Florida ....a I.enapee 10 Daffodil 1 V hlckopee lol Until the union ot the West India and Atlantic coast squadrons, the former was under tbe command of lu in-Admiral Palmer, and the latter under Com. Joseph Lnnman. The vessels or these suiiadrons, besides guarding the coast, have visited the following points outside the United States: Havana, 8t. Jago de Cuba, Matanzas, Bah I a Honda Cave, Cardenas, end the principal cays und islands on the north side ot t uba; the Anguilla group, the Cayman Islands, Deiiuiida, SU Thomas, Port an Prince and Cape ilay tleu, in Hayli: St. Domingo city: St. John's and Mava gnez. lu Porto IUeo: Kingston and Port Royal, In Ja maica; Santa Cruz, St. Christopher, Nevis, Antigua and St. Bartholomew's, or the Leeward Islands; ll.tr bndoes, Trinidad, Martinique, Tobago, St, Lucia and St. Vincent, of tbe Windward Islands; Demarara, in British Guiana; La Guayra and Porto Cabello, In Venezuela: Curacoa and the Island of Nevazit. Some ot these points have seldom or never been visited by on American man-of-war. There has always been a vessel at Aspinwall, prepared to give assistance and protection to the immense numbers or our country men. and the vast wealth crossing the Isthmus. A portion of thesquadrom has been on the northeastern coust, and visited llalilux, St. John's, Pictou, the Msgdulen group, Prince Edward's Island and other points. Itevolutlonnry movements and civil disturbances hi llaytl and St. Domingo, which threatened to place In Jeopardy Ihe lives nnd property of American resi dents, or made them apprehensive of d mirer, hitvo culled lor visitations of our navnl vessels and the ex hibition of the flug at frequent intervals in those quar ters. There bus, however, b-jen no occasion for In terference, tor the rights ot our countrymen bave been respected. Bear-Admiral Palmer, In April last, was ordered from the West Indies with a portion ol his command Id the northern limits of his station In consoquenco of np rehensioiis then prevalent In regard to tue condi tion and treatment of our fishermen on the oastorn coast. But tbe liberal nnd conciliatory policy of the J imll:di Government dissipated all npprehendol dllliculties, and the questions were early in such train or adjustment that no necessity arose requlr'ng the presence of u naval force on the fishing banks; other threatening ques tions were also quietly disposed of. During Hie sum mer, Admiral Palmer visited Halifax In the steamer J.'lKHle Jalimil, Bed the irfrioo.-i. in June nnd July, niitde a cruise among the lishing fleets in the Gulf or St. Lawrence. OurclJzens engaged In the fisheries were found pursuing their avocation quietly, and good feeling between them and their neighbors, pre vailed. The Intercourse between the oilicers of our service and the author!! les at the British ports visited was most friendly, and the former were the recipients of gratifying attentions. The vessels on the West India station were In structed to exercise vigilance lu detecting slavers and preventing the slave trade provided any linjering re mains of that nefarious traffic still existed. But no captures have been Hindu, und It is lo be hoped tills iu fniiioiij truue is cxti ii aiusueu, - - Mou ill Atlantic Sqmulroii. The South Atlantic squadron, which embraces the southeastern const of South America, and the west roust of Africa from the Cape ot Good Hope to Saint Paul de Loando. Is commanded, as ut the date ot the ln-t annual report, by Keur-Adiuiral Godoii. The ves sels arc the fntnu.' Gunt. Brookly n'llag ship 21 Nipslo s Juniata 1 ij.Sliaw mat .........il Shumokiu mIu Wasp ......3 Kansas Ouwurd .) Tbe vessels of this s. mad roil have, durlnu Biu year. Visited Itio de Janeiro, Bahia, St. Catherine's, Ceara, MaiHiihaui, Pernumbtico uud Santos, In Brazil: liuenos Ayres uud ltosarlo, in tlie Argentine Repub lic: Montevideo, Colonlu und Posandre,. two hundred miles up the Uruguay river. In Uruguay: Coucepcloit, lu Paraguay: St. Paul de Louudo, Benguelu, Little und Great Elsh Bays, and other points on tho coast of Allien, the l-'ulUlund Islands and St. Helena. 'the duties of this command httvo been faith fully und promptly perlormed, without any extiuordlnory Incident to record. The re-establishment of the squadron In that quarter has hi en productive of friendly and bcnetlclul Intercourse between tho officers and seamen ef our service and tin so of other powers in whose waters our vessels hnve appeared. JCiude Janeiro has been selected KS the head-quarters ot the squadron, and at, St. Paul tie Louudo, which Is now embraced within Its limits, a Joint depot of stores and supplies for tueSoutb At lantic and 1 uropeun squadrons has been estaolished. It is believed that so fur us the former squadron, par ticularly, u concerned, the arrangement will he pro ductive of economy, and thiki advantage Is follow I r oui embracing a put Hon of the soulliwest cu:st of A fi ll u and the east c.iuj.1 ot South America In one squadron. The saving of fuel one oi the most cosily unifies on our foreign stations is a subject worthy of tlie closest attention, aud Is oue of Ibe objects which the department hud In view In tlx lug Hie present limits ol the squadrons. A vessel taking its departure friiiu some polnto.i the i-ouiheitst coast of South Ame rica ca H run belore Hie w ind over to the African coust, follow that coast under sleam lo the depot at St. 1'uul, uiidllivii In Wo tho trade winds buck to the cousiof lU-B.il I. The Jimliild arrived ut lllo on Ihe tilth ol September, having made it successlul cruise to Hie southwest coast of Africa. The Information obtained by her gone far to confirm the impressions that Hie ina ntenaiics of a permanent soon. Iron on the Alricun coust will no longer be required. But one slaver hud been tilted out eu the southern const of Africa within (bo past veer, mid she hud been captured on the coust ol Cuba with her ciugo. It was the opinion of prominent oill i uls at l.oando. iin-lildiiit; the l-'rencli utliulral on that union. Hint thvMtuvp trade hud ex-,, red mid that llils i-iui i,y civ .l,.u."ii iioit ih- imq ti 'sit., a mat ter or I, she In n"lgnlne to Mm Kuroiionn and Snulli A ilnnt.e- F'liiiidrons the duties heretofore performed hv what v hs known and miilntnined bh the Alrican sq'iB'tron. Hint distinct on-Biiizattoii lias been dispensed with, und the seiylcs Is more economically perlorui"il. '1 be prevailing wnr between the" allied powers ot I ru.ll, Uruguay, and Hie Argentine ltepiihlic and Pa runout has rendered It advisable to keep one or nmro yctels In the vicinity of the i.a I'lalle. The II ig-shlp Imn been mi st of the lime In Hint locality, und Am-H-iii citizens and intero-ts have received dun care nnd n:li ntlou, old and encouragement being always ner ut Lund uud ready to be extended In their bhalr. In April hist Rear-Admiral God in uscende l 11:8 t rnguHV river as far as Pa-iandrc, some two UuudrcJ inl.es above Montevideo, orlh I'nHfto Niinnriron. 1 he extensive limits or Hie Pacific Squadron, and the important nnd i-apldljr Increasing Americm Inter-e-ds on Die western coast ol this continent, which re oillre lo be protected, rendered a division ol the naval force advlsenblo. By this division the North P.tcilic sqradron was made lo embrace the coast ot North America and the Sandwich Islands, ond was place I under the command of Itear-Admlral Thatcher, tins officer hoisted his ling at San Francisco on tlie lilli liny of August, lww. The following vessels have beeu allotted to this squadron: "ton.! fitmn, Vanderbllt, flag-ship l.v Jamestown ri l'ensocola 21; Lackawanna 0 Suranac (temporarily).. Is Mohican 8 Snwaneei li Hes,ica M 8 Mohongn 10. Saginaw, 4 '1 he J'intiicola. Mohican and Kmum have not yet reached their ilesllnaiions, and the .Vo;ii,iw. under au thority or an act of Congress, Is aiding the Western Union Telegraph Company In laying a tolegraphlo cable on the northwestern coast. The vessels of the squadron hove visited the Sandwich Islands, the ports or Central America, l'nget sound, and Acupiileo, Guavmas, M-i-znHun, San Bias and La Pax. In Mexico, Ar. nil times one or more vessels have been at San I'rmicisco. and also at I'anume, ready lor any emor g, ncv, ni d theie has oeen almost constantly a vessel Hi or in Hie vicinity ol Acapulco. Hie most Impnrtaut I olnt to our Interests on the wsjt coast of Mexico. In the hitler part of September a conveyance to Honolulu In Hip I'mi.fal.n wiw tendered to and bc cepted by ijneen I nims. and tbe vessel sailed lrom San l'rancleo on the l;u h of October on that service. A more thorough exploration ot the Paclllo Venn, with n view of correcting the charts and thereby les piniiig Ihe dangers to navigators. Is Important, and our cruising vessels are expected to render themselves uselul in ocean surveying service. Under the special direction of the Bureau ot Navigation, which is In trusted with the details or such work, much valuable inimical Intormallon may be obtained hv competent mid elllclent ollleers, who. with the means furnished to each vessel, will be able to correct some existing errors and establish with approximate correctness Hie g.-ngnuphlcal position and actual extent of many of the daucers which are now Imperfectly stated. Tlie cruising vessels of this squadron, when not on special service. Instead of avoiding these reported but doubt ful and Ill-defined dangers, will make It their duty to ascertain, by actual observation and search, the exact facts In regard to them, and report lull particulars to the Department. Noiith Pacific Sqnnilron, The South Pacific Squadron extends from Panama to Cope Horn, und includes within Its limits Austiollu. 'I his fcquadron is under command ot Rear-Admiral Peal-sou, who, until tlie division or the squadron, had charge of the entire force in the Paclilc Ocean. He is to be relieved by Rear-Admiral Duulgren, who sailed from New York ou the 1st Instant. The Vossels com posing the squad ro u are the following; Wunj. Oiom. Powhatan (flag-ship)..... 22 Dacota. 7 Tuscarora lu Farallones 6 Wateree 10 Fredouia 4 Nyuck 8; The J.anrattrr, recently attached to this squadron, is on her return to the United State. Die following j. onus bave been visited during tho vear: Valpa raiso, Callao, and the commercial ports between those points; the Clilncha Islands, Payla, Uuayaquil, Panama nnd the Straits of Magellan. Events transpiring on tho coast of Tortl nnd Chill have rendered the presence of the greater part of the Pacific squadron necessary In that vicinity. In the absence oi Rear-Admiral Pearson, on a cruise to the Sandwich Islands, war was declared and entered into between these powers andSpain. Information of this fact was despatched to Rear-Admtral Pearson, with orders to proceed wltnout loss ot time to Peru and Chili. These did not reach him until his return to San Francisco. With as little delay as possible he proceeded to execute the orders he received, but he lore be arrived at Valparaiso the Spanish fleet bad bombarded the city, Inflicting great damage. In anticipation of active hostilities between Spain and the Southern Republics, whereby American In terests, and especially the shipping Interest ut the hincha Islands, might be put In Jeopardy, the De partment had iBken, the preceding autumn, mea sures lor reinforcing our squadron in the Pacific by sending thither a special force, consisting ot thetur reted iron-clad 31tattnock VamlTbilt. ltcarora and J'ovliatnn, under the command or Commodore John Rodgers. This officer reached Valparlso previous to the bombardment or that city, and apprehending the views or the Department, remained on that station IjicliF-Alfmlral PeiTr'soST"! appearance of so dis tinguished a commander, with a formidable squad ron, on the eve of so Important an occasion and In tho nosence of Itear-Admlral Pearson, was opportune and fortunate. The course pursued by Commodore Rodgers In pro tecting American interests, and in ob-erving and pre serving neutrality In the harbor, met with ap proval. Wbutever may have been bis opinions or feelings as regards the course which the Spanish admiral thought proper to pursue, ' he was not required to Interpose his force against or tor either party. As ttiQurmed representative of this Government, which was on friendly terms with each of the belligerents, It became his duty, even while endeavoring to mitigate the harsh severities of war, to maintain a strict neutrality. His friendly offices in tlie cause ot humanity were manifested so long as they could be effective: but the officers or other neutral powers hovlng declined to unite in any decided steps to protectthe city, no alternative remained for him to pursue, consistently with the position of this Govern ment towards the pnrtles. than that which be adopted. Alter the bombardment of Valparaiso, which took placeon tqeSlstof March, the Spanish fleet retired lrom before thut city and proceeded to Callao. Itear Admlral Pearson, who reached Valparaiso on the 17th ot April, ulto proceeded to Callao, nnd was present (lorimr the attack on tbe defenses of that Dorton the 2d day of May. No occasion wos presented for hltn to depart from the neutral position which hud been tnken, and which has been strictly observed throughout the coutest, towurds these bolllgereuts. On If Stiiiatlrotr. Aflalrs of public policy required thot an organized squadron should be continued in the Gulf of Mexico. Commodore John A. Winslow was selected for that command, and entered upon his duties on the 7th day of May, ltloti. The vessels of this squadron consist of: irt'TIS. ir,,,ra 3 Chociira tf ......Ifl.Talionia 4 lo Yucca. 2 20 Glasgow it 8 Charlotte Estrclla f (lug-ship). Mahaska q'tilliipoosa Potomac Paul Jones.. The vessels I. live Patrolled the Gulf of Mexico, and repeatedly visited all the ports on our coast lrom Key West to the Rio Grande; o-lso. Havana, Matttnzas and Cardenaa.on the north side of Cuba, and the waters of the Rio Grande and Tamplco, in Mexico. On repeated occasions during tlie year one or more vessels of this squudron have been sent to Tamplco. Apprehensions were at times entertained by Ameri can residents in that city as to their entire security und safety. The reports of the commanding officers to whom the service was-assigned Indicate t but neither American citizens nor American Interests have suf fered violence from either or the contending parties. During the spring and slimmer, reports were circu lated of the Intentions ot lawless partlos to seize colored persons on the southern coasts ot the Gulf States and carry them Into sluvery. the nel rhborlng Island of Cuba being their alleged destination. Such contemplated violations of our laws and Hie rights ot liutiinnltv were sufficient of themselves to arou-e the vigilunceof the Gulf and coast squadrons, each ol which bud lis iittcntioncalled to tbe subject aud was at all times vigilant lo detect such schemes, If they exl-tod, and to Intercept those who should venture to engage In them. Jud'cious inquiry and anxious wutchuig have fulled to bring to light any at tempt to corrv on this detestable traffic. Precaution wiiS taken, bv despatching a vessel for the especial purpose, to warn our consular representatives at the neighboring ports ot Cuba of suspected movements of Ibe kind referred to. and from on expression of opinion obtained from t hose oilicers and others after diligent liniulrv, it Is dltllcoltr lo believe that, even If an expe dition ol thut character were suecessrul in departing from our shores, It would be permitted lo laud or be ricaived into Cuba. Kpccial Service. Besides the vessels nttuched to the several squadrons, a number ure on speciul service. The Su'io . tho ap prentice ship of the navy: tlie tUiuurhimrtl; Mniwhu and .Vcicomi, which are used In conveying supplies mails, and officers and seamen to und i from Mm tqiuidrons on the- ooastt the l'urveyur. which lias re cently relurucd from St. Paul de uoaudo, where she landed a ciugool stores for the Europeau and South Atlantic squadrons; the Von nnd Ainihif.n. used for towing und other service between tlie yurds and stations: the sanuiunUn, on a special cruise and under Miechil i instructions to the coast of China uud Japan, lo idling at vaeloiui localities ill the route lor tbe purpose of her misalou, and the Mu-hiuan, employed "vm i(rhns her bead-quarter at New London, witli her field lor rrnfcltig extending lrom the coast of Maine lo the Capes ot Hie Delaware. Tlie Mickivim. as soou as the Ice permitted the re sumption of navigation, early In May, whs about pro ceeding on u cruise through the lukes, wheudiaturu anceson the frontier assumed such proportions us to require the eo-operation ot that vessel will the mil -tai'v end civil authorities to preserve In rood tuitb the neutrality laws. The M j-,ifmi was engaged In this duty from early in May uniil June delaying lu-r annual cruise to the upper lukes. V hu the armed lon e which Invaded Canada wos deleateil, the fugi tives, driv.ii lrom their positions by the lorce directed ucaaist them, were about seven hundred ol i hem, captured In H-'ir retreat by tho Jfcri,i.iM on the ailot June. In Niugura river, otr Lower llUck l. ni..,. u,An .ctttln4.il and orovlsluncd on board the fliirhiiia'n until the Bib, when they were turned over to li t civil authorities. On the intli of June Cap .. ... n...,o,. .. ... ..iind hv the military commander oVuie district that the co-pperallou pi was no longer required at thai point, the difficulties ;..r.i..r ....nn n ma front or having terminated. SU.i-tlv ultttrwarda the 3icnjj,i made a circuit or the tipper hikes, visiting Cleveland. Detroit. Mackinaw, cr'-en Uay. Milwaukee, Raoine, Grand llaveu, aud returning to Krle and Buffalo. ... T II e sicam frigate N1..r,e -in'iMO. !ommodors Jamej Alden. is on spw-lal service, having been fcrdored to idnvey our minister to the Mexican repulule and l,inl twisut Cencrnl Sherman lq Vera Cm., or vtctt pout as ioibl be i-equlrodl MonmliiocU" nnd "Mlnnlonom h.' I Tbo lui rr-tcd or monitor class or vet'els were never I rins i-ned I,.- ii, - i, . . f l , i" t. , " i" ' meiii, nir i-niiiiTin inrFwpi. "til I' r Harbor defense nod opera' Ions upon onr coast, jn 11 ao ncot for which they wero Intended, these ves sels nr.- as formidable and cllicienl as was a nl impaled, nnd will furnish security lo uny port, and be alilu to dispcise, r destroy nuy blockading Heel which inn appear In onr waters. The peculiar formation ol our eos d is n llsell a protection against the heavy and loriiifdnhlo Iron-cliuls of Immense tonnage and deep diaught which F.uioiwao constructors have devised hi cause, except hi a few points, It will hedliliciili fr liiem lo iippioach within ennuon-shot ol our slioro-i, and there Is but n single port which they can enter lioin Ihe Capes or Ihe ( besapeuke to I he Rio Grand". Bui, w Idle in Ihe estimation or onr best naval ollleers onr monitor class or vessels ar more than a maicli for Hie monstrous and expensive iron-clad structures ol l.urope. I hey are ot such draught that they can enter all of our principal harbors, and are, there for", peculiarly adapted to our ooa.it defense. Tlie Impression sought to be created that these vessels could not venture outside the harbors where they were constructed, or at all events, that Ibev could not proceed on a distint Voyage, has been dispelled hv the cruise of the Miivn-lnnek. which, after navigating Hie Atlantto and Pacific, reached San Francisco In safety. The Miant't iionoi,, another monitor of the same tvpe as the M nmliHirk; crossed the Atlantic, passed up the B ilticto CronslAiIt. and bos visited many or the principal pons of Kurope. 'i'hese vessels have. In those two voy lures, disposed in a treat degree or the niisreiire senlittlons and prelndlces which had been created, and proved Ihe nbilltvof Hie t arreted vessels to per form long voyages, when required. ill eat credit Is due to Commodore John Rodgors and the ollleers and crew who were charged with Ilia hiber, responsibility and risk of vindicating the navi gating power and rapiibilily o! these American navnl vessels. To Lieutenant Commander Francis M. Buiice, who volunteered to navigate Hie ,Vni.bio.-fc to San Frnncieco, and performed that duty, which iiuii.y deemed hazardous, and not a few denounced as mi Impossibility, honor, and praise and promotion are line for persevering and successful dailng. Servlca sucli as bis cannot be otherwise than appreciated and rewarded bv the country. Hear Admiral Goldsboronsrh. In a despatch dated tbe 7lb of November. Issi, says:" The pilot who went lrom Cherbourg to Brest with the veisels, a man of large experience, told me that he never in his lile saw 0 vessel behave better tb&u the Jlftnnnonuilt, and for his port, ns lar as safety was concerned, he would be willing to go round the world In her. N ice Admiral i'opoffofthe Russian navy, who took passage in the Jfiitntmmmnh from Hamburg to Cherbourg, also told me I bat he wns particularly struck with her good sea qualities lu the midst ofa heavy blow and sea encoun tered Just niter leaving the Kibe, aud that If be was iu toy place he would prefer being on board of her to to M e ( Yiloratlo. Indeod he spoke in the highest terms with regard to her merits on the occasion." Naval Depot for Iron Clailst, Tn consequence of the fellure ot the Senate to act on tho bill which passed the House of Representatives, for the acceptance of League Island lor naval pur poses, the Government remains without a dopot or Htm ton for our Iron and armored naval vessels. Most 01 them have been permitted to remain In the back channel at League Island, wnere they were placed uller the c ose ol the war, as the best and most avail able location for their security and preservation. It Is desirable thai the bill lor tbo acceptance of League Island, which has beon unfortunately delayed In lis passage through the senate, should receive the early action ofthnt body, that the necessary appropriation may be made for deepening the channel, preparing suitable docks, and making other necessary arrange ments, at an early period, for the proper care and protection of the large number nf costly vessels whicli are there In a precarious condition, and from which tbev are llableat any time to be warned away by the proprietors ol the adjacent shores, The vessels lying in the back channel are there on sufferance. Being of Iron, it Is essential that Ibev should he laid up in fresh water, and in consequence of the omlppion of Congress lo provide any suitable Place, the Department selected this location as by far Hie' most eligible in tbe country for that purpose. They are there, however, under many disadvantages, for no preparations or Improvements for them have been made, nor Is tbe Department authorized to make any, for the safe keeping, protection and preserva tion of vessels which have cost the Government seve- ral millions. Deterioration and permanent Injury must be tbe consequence of this delay, and, notwith standing every precaution has been taken. It is but reasonable to expect that they have already beeu damaged to some ex leu t from their exposed coudilluu. . Enlargement of Navy Tards. Tlie purchase of Seavey's Island, adjacent to the Navy Yard at Klttery, authorized by the act or April 17, IMM, has been consummated, unci thut Uluud now constitutes a port of the Klttory Navy Yard. This acquisition enlarges tbe heretofore, restricted limits at but station, and will obviate some or the difficulties which have been experienced In cousequenoe or in sufficient room for tbe shops, sheds aud storehouses which are wanted to store materials. The annual loss at this aud other yards by the deterioration ot materials unavoidably exposed lo the weather, or stored, with much luconvaulenco, in temporary sheds, has been very great. Tbe want ot sites Siii60' IliSyiiftfrW Tor aQ&ugnouenadTi7ouar story to the pre sent buildings. operations at most of the yards have been much embarrassed fur want ot room, but at no one has there beeu so much difficulty and Inconvenience from this cause as tit Philadelphia. Until the introduction of steam the Philadelphia Yard was of secondary im portance, on account of Us Interior location, which rendered Ingress nnd egress to vessels propelled ex clusively by Halls difficult and dilatory. But tho revo lution wrought by steam the manufacture of iron vessels, and engines, and armature the advantage ot an Interior location which whs formerly an objection the facility with which Iron and coul can be obtained on the Delaware, and the necessity that our Iron uud armored vessels should be laid up in fresh water, will make the navy establishment on the Delaware river Important beyond any other in the country. It is impossible, however, to carry on the operations which ere essential at thlscentral point within the limits of the present yard, which bas scarcely one-sixth of the areu of any other, almost all being too restricted. Nor cun the present yard, which Is wlihln the thickly populated purt of Philadelphia, bo enlarged except at a cost which precludes the idea of its accomplishment Another locution must be obtained. Ten times the water front, and twenty times the area of the present Philadelphia Yard ure wanted for the naval estab lishment on the Delaware. There is no doubt that the pi esc nl yard will be abandoned, nud the sooner an other locution Is secured, with ample room for the necessary works, to which ttie present establishment t un he transferred, the better will It be tor the service und the country. Should the Sonata confirm the luw w hich was pussed by the House at the last session, incepting League Tslund for naval purposes, ample ground und wuter front will be obliuued, Peiibioiia. On the first of November last the navy pension roll was lis follows: P,a7 invalids, with annual ponslons amount ing to 4 V7S,(jJ7-OS 2n3 widowsandorpbans, annually receiving.. 1:12,1112 00 :i,J persons receiving a totnl amount of f-JVu.TOTD ! his nmoiint will he somewhat Increased by Virtue ot the provisions of tbeucts of June 0 and July 20. Wyi. Expenses nnil Estimates, The available resources of the depart ment for the nscai year enaing June wi, 1S.. were H42.-id.oi9-4n l xpendltures..... 4.i,:k4,.'W-4J Leaving nbalnnee nt the commencement of the present fiscal year of. , 007, 392-98 The appropriations lor the current year amount 10 Mnkincr the 'total available resources for lS.97f,667Tt) the fiscal year ending June W. 1HU7. 117, till. (V.0-IS Ah several ot the bureaus will have unexpended ap propriations, which will be ample tor some time to tome, they have made no estimates for the fiscal year end ng June 30, 1H6S. The following amounts are asked for: Pny of ollleers and men of the navy 10,320,250-00 l ay lor laoor ami superiiiieuueucw 111 uuvy yurds Borintles 10 discharged seamen Navigation, Naval Academy, Observa tory, Ac Maj.a.ines Sen eons' necessaries aud hospitals Contingent expenses Support of Uuriue Corps ...... 7,0711,102-00 500,1 WOO 6I2.ITO-15 KO.OOO-Oll I.Wt.51'1-00 ljiy&oeo-iN) .... l.aro.ziz'ui Total '. tilSiW,4.i6-m The large unexpected balance lu the Treasury at the close of the last fiscal .year is embraced in ap propriations under more than one hundred dif ferent heads. Many of these are-continuous, have boon made for years, their expenditures wilt be protracted: though -years to come, and, though assisting to make una large balance, can be dispensed Willi. Tnere are large amounts, however, under Ibe- beads of "construction," "steam engineering," 'ordnance,' "provisions and clothing" and "liial." which can with propriety revert to the Treasury. No appropriations under these beads were made fur tho current year, and for the ensuing year none are asked, lu the course ot time the appropriations would bo ex hausted, but It Is not believed to be in accordance with sound public policy In time of peace to coutlnu tuch iai f o uiuounts at the disposal of the Department. Liberal appropriations tor the naval servixie were nuule during tlie existence of the war, but Hie funds of the Department were always carefully aud economically expended. This tact Is attested by the iiunieemis claims of contractors for relief now belore Congress; and tbe result is, that the ltepartment Is aide to complete all tlie vessels and eiiglae contracted lor before the close of tb war, and detdgnale uppro uriiitiniis 10 iheamount or about fifty millions ot dol lni that can be rxl'iutuohed lo the T reaoury, or mivy hei il.ei wise disposed or by Congress. Ii has heretofore been deomed essential to correo ndb.imst ration that there should beauuual estimate tor proposed expenditures, und specitio appropriation llitl'elor alter exuminatlou by Congress, and this De pac ment has no desire to evade this, auuual soruiiuy. The nn realist. Tlie reports of tho several clilers ot bureaus, and of tht Colonel Commandant of tbe Marine Corps nro ap pe ded, and are referred to tor full information of the opi rations ot their several depurttnout. A brief ab straotunly cnu bore be given. ' ,. Tlie chief of the Bureau ot Yards nad Docks gives In deji 11 a statement or the repairs and Improvement t the navy yaids, the preaont condition of the work-. mid 111s views 01 luture w slits. 1 1. expenditures r ,,. pel . j'uient improvements were necessarily ur,Ri dm dig the last four years, and now that tbe w jr u ciesed, it is thought to be sound policy to t miuly many of tbe wants, and correct the ti(;ctH -hicfi f sist jot war lis developed. The Pnrlsmo-jth yart has been axteudMl by lbs purchase of sohv yi Hfund aud firrsht'ftiiienls have been made, siibjor t only to a (sriiul of pirisdieHoii by tho New Y(ir, Legislature iui (vtepdlng the Hiool.l'" ysid by jn, , -,,r ui h, Into it properly known ns Hie Tttipgles Hale. Tun means lor executing w,-g t n, piiiindflpbla yard are very ni l.id rt in , ,-,.. ..:, ? L o'"1 '' ""." Inrve muintltip ol work bave ."L "e I'nvate esiaiiiishmenls which conld pmv 1? Vi ',',J'"n,,", " economically and per eeilv In Hie ovv yard had tbo fui liittes exlnled. It Is also recommended Mint the Washington vard I m"1"1 i.'y 'l!e, bbrchase ol addition properly" fourteen beneficiaries have been admitted to Ilia Naval Asylum during the year, nine have died and one has been sent lo the Insme Asvlum. Tntl num ber on the rolls, Including oilicers and attendants. 17 expenses, KAllMras. The Bureau of Navigation has under lis Immediate supervision Ihe Naval Academy, Naval OhsnrvS lory, llydrogrnphlo Ollire, Nautical Almanac, aoo lh School lor Naval A pprentices, nnd a survev ol oiaera llons In ench ol these departments Is given tt Ihe report of ihe Chief of the Purpart. The so'ilmTt of the local deviation or compasses, arising from tdw a se 01 large quantifies of Iron in the construction or v s-seis-oi-WBr, is occupying Hie attention or the Hiirem ami tue results of some Important ofiservati.ins wit I soon bp mode public. To collect daU for this purprms Js especially sMit to San Frnnclso . In ttVt p.i ,.m II ''"""''"i-. A HynroeraphlcOHioo has hoe , '"'is cltv, under authority or an act of tr ,friTV'''1 Rl "" ,,v,l session. It will be the cen nn , iiJuPh!. 1, "? w,""h charts, salllnn d I rent Inns an buVifor lh rs-v,.e'rr,,iwill'fi',,,p- T"n "lld .,i?; T t nl Aodniy authorised bv Oonirriws Spin V., i,wCT"!!P"c'"' '"r Improvements bav been completed. The Superintendent of Ihe Naval Observatory reports that there has been added to thi Ins riiments or that Institution a great Ua , it circle which restores the observatory to the rank of nt-' class Institution, and will Inriroly extend Its sphere tot usefulness. The result thus far or the naval appren tice system has not. In the opinion ot theohlal ot trier Bureau, disnppoin led the expectations oi Its most sau guliip advocates. I he chief of the Rurenti ofoftlnanre reports the sale, during the past year- of unservlccotile cannon and surplus powder to the amount of IS7.s'i4, Other ordnance material whicli the close of the war has lea on bond, and is not needed lor tho present or Prospec tive wants or the squadrons, will be ;d Is posed of, ll states that the most satisfactory results have been attained with guns cast either solid or hollow, and nothing bas transpired abroad, In the effort to pi educe a steel or steel and wrought Iron better than ours, to I ml nop a fear that cast-iron ordnance will be surpassed In nnv essential of endurance, either ns smooth-born or rides.- In gun carriage a decided Improvement has been made In the substitution of iron lor the cumbersome wood ones so long In use. and a carriage has recently been designed upon which 11 tifteen-lneh gun can be safely handled In nny weather In which au action may ba fought nt sea. The ChlPt of the Bureau of Equipment and Recruit ing report that seven rumored and thirty-one tons of hemp, of a value or 2!if,4S(i, have been used at tbo -Government ropewnlk at Churlestown. A board has been organized to examine and lest the comparative strength or wire and hemp rope, with a view to li more general Introduction Into the navy, should the report be favorable. It Is believed that by the use ol wire Instead or hemp rope, a vessel or the Wahntlt, class will be relieved ot over tour tons' weight ulolt, and that there will be a large saving In the original cost, as well ns Increased durability iu the rigging nf a vessel. The coal contracts for the current veararn for 40,000 tons delivered at Philadelphia, at V;-6I per ton, and 12.0C0 tons dellvored at New Vook, at tJDt per ton. But little coal bas been sent abroad during the year. Kspeolal attention Is Invited to tbe sugges tions relative to the enlistment of seamen, both for the naval and merchant service. ThereHrtol the Chief of the Bureau of Construc tion and Repair is chiefly occupied with the prospec tive wants or his department. To place the Govern ment dock yards In such a condition as tbe experience of the past few years has shown to be necessary for elllclent service will require the erection o a number 01 new buildings. The views of the Chief or the Bureau are detailed wltn some minuteness, and should com mand attention. During the war it became necessary to build many vessels of unseasoned limber, but such vessels are ot short durability, and true economy will be consulted by laying In for future use a large supply, particularly ot oak and yellow pine timber. Special appropriations for a tew years for this purpose am recommended. During the year the force In the navy yards hns been principally engaged In placing in effi cient Icondltlon the vessels which had been almost constantly employed during the war, and but littln -progress baa been made upon the bulla ot the new vessels. The Chief of the Rurenn or Steam Engineering re ports that no new work has been undertaken during the year In his department. All the new work under construction was commenced before the close or thn war. ai.d a number or engines are now completed, tor which the vessels have not been commenced. This win betaken off the contractors' hands and stored. The machinery for the Idttho and Alnonquin, designed by E. N. Dickerson, has proved a rail ure In each case, and been rejected. As the navy is almost wholly a steam navy. It Is suggested that increased facilities b afforded tor the construction and repair of steam machinery In our navv yards, and to this end esti- -mates, amonntlng to about one million and a half of dollars, aresubmltted. The Chief of the Bureau sug gests that In view or the Importance of the K"'r.? 1'r,, 1 1- n n u. ...4 - . . ... v , uuicPfs So on Id be ncreased; also, that the age qualification far oadol en gineers he extended to twenty-one years. The Chief of the Bureau or Provisions and Clothing: calls attention to the very great evils of the present svsiem of supplying a sailor with his outfit. Tim market rate lor tbe various articles he Is compelled to purchase la now so high that, when a sailor has re ceived bis advance in money, and drawn bis clothing and small stores, he finds a dobt of about a hundred ' dollars standing against him, which he cannot expect -to work out, after leaving a half-pav allotment for hla family. In less than a year. The Chief of the Bureau ' recommends the erection of an additional storehouse, nt a cost ot lluO.ooo. upon the new purchase at Brook- -lyn, known as the " Huggles property,' TheCbiefot the Bureau ol Medicine and Surgery calls attention to the necessity for Increased hospital accommodations at the Naval Academy, Annapolis. -. and suggests that a sufficient sum be appropriated-to- -purchase a proper site, and to erect a hospital com mensurate with tbe necessities or the institution He represents the hospital now In use as wholly insulU cieut for tbe present number connected with the aca demy. He also urges an appropriation or $i5e,nea additional to the amount already appropriated to build -a hospital at Hare Island, to answer the growing ne eessltiesof that distant station, lie represents that: tha budding In which the naval laboratory is curried on is . small, and so inconvenient as to seriously embarrass, its operations; that the machinery, apparatus, man 11-. Picturing department, store-rooms, packi ig and dis pensing rooms, are all crowded In one small build-- lug. He submits an estimate of tso.onh lor additional ' laboratory accommodations. Interesting table. con 3 m eted with the casualties of the navy during the Rebellion, and showing its sanifury condition,, are -given. The number of persons wounded during, this period was 4U'u, ot which 82iG were lrom gunpowder? , 4."ii were scalded In battle, and 3D drowned In bat tle. The casualties Incident to service in the navy, not connected with battle during the same tln were r70. The aggregate number of deaths .In .the nuvy from casualties of all kinds during the Iteliaihfca was 2:172. as follows: From gunshot iractures.4i5; frof , q gunshot flesh wounds, I.108: from incideutul cajuaUi 4 b;tf: died in Rebel prison-pens, trt. The d touei commandant or ine aiarine corps ports that ut his annual inspection he -founev m order, and discipline sufficiently marked .to rust credit apon both .oilicers and men. One-hoU nt re- od ect 1 tha upon strength of the corps Is attached to vessels 1 loreign service; ine remaiuuer ! euiiiuyeu iik. . uarti. lug the nary yards and naval magazines, ami h,, .... . ,..t ,.. V .l.,,l.. ol,lln TU-n HHt.ir ?el" umuuvicu It, ,11V WUWW V, D, . v. u.. experienced in getting a sufficient numlivr cruits, and a better ciuss than formerly. 't' mandant of the corps recommends thut new be erected lu Washington to displace thuM sent occupied, which were reeled iu lsu.i,.u,uJ - . ulty i of re te com arracks 1 at pre besides. being dilapidated and net adapted to UI health una comiort 01 1110 men, ure cuiiaiiivxr , whollv inadequate for the wuuts of the. se .. e " Ufa BIHll rVUUUI lllt,liuei nil,, vtv no. tOWIirdS securing a convenient site for marine ba-rrar :k, , Nor. folk, where there are 110 suitable oucotuiix ,u,.ions ir the inariues. Attention is ouUed to the-f ,h"t al though the corp . k a uiilitary ornanilio- u niimberinir some thirty-six hundred men. Its .coutui , mutant holds but the commission of a Colonel, S:p ,,r(,,, M felt that the grude of Brlgnirlf r-Oenerlr Bll"Uj bacon ferred upon the highest officer In a nosy wi,ose num. " f er and service would Seoul to Justiiy 'n, portioulurly at a lime when ua mauy army uusuf ar8 aooored M,l,l, Mint iiAuilinil. . 1 have In this reiHirt presented tM Ui ana glfttaa for the liilorniullop of Congress, the l:lt Mnl oonditlou of onr naval force at home, where. I lS proparatiou lor HMcloiicy Is still pjeceeding. J hotigli on a pro perly reduced scale, and- It, r arrangements and operations abroad, where, oAr JWinir in tlie track of our expanding oomiueruM, it Pe. faiiuriil watch over our uullonal iitere . , um honor I have added to this description aucjw' gesiions as I deemed most worthy of fuvjiable iMuitg, ratlou, looking, with a due ntwervnnce ol ecououtif to further iuiprove inantot its organfa-atiou.. w j cuni which succeeds the great tempest- throjg! which our country has passed, gives m the cfttU ,yi opportuully. while stutiiiK the movwmeuts ot 0r naVui foico In distant seas, lo suspeiidrfor thl-Jf Br the five times resumed nurruiiveof its might Bp jw-th and ever memorubl iichtevemenlSv Ytlu.QliK dug this report I again ex hort the Government! f ,nd tho country to realise, promptly nna-prnclieally' that the mulnieiiaooe of our nuvy In un aniililudn power udoquaie to uny emor gvney, is iiitlmxitely bi nded with our hopes of lasting peace, with the aii!H 'niutlon of our vast oommerciul eiileii.rise nnd proi .-rlt-, aud, above ajl, with that grand niia'imposlHO;'llBvai reuown whicli-lius come lu our nge to be nianiw -stiy ma surest and the cheapest, dulciMieof-a, greai utlou. G1DKON WKr.I.lis, Secretary of the Navy. .rGAL NOTICES. TK THE. V'OTJBT OK COMMON PLEAS FOR X. THIS ' fy AMD COTJNTV OF PHILADELPHIA. Iu Uhs ai'atter 01 the peti'loo- tor the- sle of real tstate Us-'.he tie' man LutUerau Cont resation Ihe u-V.enegned. appoint i-by the StWd c art to lvr and rer ;rt upon the claims f nersoM holt log lots la 1 lif war y lug ground of the above cong rogation, situata rn Vijf east Hile of Cbht. street, between Bae aud viii streets in the cltv of Philadelphia, hereby hi tec ,rdanee with the ortlwr of Court of hoveuib ir It, jU gives notice to all parties holders ot lots, or Inte f jsted therein, to ap tear before bku at his ot!lea,i4os 433 Walnut Btreet.lu said city, on TrtUKf-Oaif. tha tUirteci.th da' ot December, A. D. lHiifi, at I o'cloak . 1-. M . then and there present their several claim. 1 bis notice Is given for the purpose ot enabling Bet tor, having relation burled In said ground, of having -rights ot burial grouted to them by sa d corporation to p.-i a.'ut their obleetiuu 10 tuo sole of tba gioaail anil reuiovsl of the ilosd. -s-J IliBTit' THOMAS WORaftt. rxantoer TfTsON 1 0 J'UISL rCATIONS. -II K A.1) 'JU AU -1 1 tent for masonic, IjiijIvh, t M'JNS A (:). Kq, i ll r:ltr?s,NI,)T HffW-t I0U nM tffWsttaTwislilliliifcl WWihwpr it