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. These losses left at the disposal of the De- Decatur, sloop, at San Francisco, 84 50 16 . 3 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 imThere have recently been added to the navy, mediately felt, and a class of vessels different by purchase, 12 steamers, carrying from 2 to 9 in some respects from any that were in the guns each, and 3 sailing vessels. There have service, to act as sentinels on the coast, was been chartered 9 steamers, carrying from 2 to required. On the spur of the moment trans- 9 guns each. By these additions the naval port steamers were secured; but, though made force in commission has been increased to 82 capable of sustaining a small armament, they vessels, carrying upwards of 1,100 guns, and were not such vessels as would perform con- with a complement of about 13,000 men, extinuous duty off the harbors in all weathers. clusive of officers and marines. There are also They will, it is believed, answer a temporary several steamboats and other small craft which purpose for the summer months, but a stronger are temporarily in the service of the Departand different description of vessel is necessary ment. 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 1,346 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 frigate, two sloops, and one brig were burnt at Norfolk. These vessels carried 172 guns. The other vessels destroyed at Norfolk were con Purchases of sailing ships have been made for transporting coals to the steamers that are performing duty as sentinels before the principal harbors. It would be inexpedient and attended with much loss of time, as well as great adshort of fuel to leave their stations and proceed ditional expense, to compel the steamers when 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 3,300 men. The squadron in the Gulf, under the command of Flag-Officer William Mervine, consists of 21 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 II. 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 West India squadron is under the command of Flag-Officer G. J. Pendergrast, who has been temporarily on duty, with his flag-ship, the Cumberland, at Norfolk and Hampton Roads, since the 23d of March. He will, at an early day, transfer his flag to the steam-frigate Roanoke, and proceed southward, having in charge our interests on the Mexican and Central American coasts, and in the West India Islands. The East India, Mediterranean, Brazil, and African squadrons, excepting one vessel of each of the two latter, have been recalled. 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. and disaffected about the period when the conspiracy culminated. Some demonstrations were made towards seizing the property, and also the frigate Constitution, which had been placed at Annapolis, in connection with the school, for the benefit of the youths who were being educated for the public service. Prompt measures rescued the frigate and Government property from desecration and plunder, and the young men, under the superintendence and guidance of Capt. Blake, contributed, in no small degree, 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. 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 recipients 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. ly one-third of the districts neglect or refuse to 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 for a period, at least, the numbers in the school is, moreover, worthy of consideration, whether 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 been made. When the late Commandant of possible, the extraordinary demands that have the Washington Yard, on the 22d of April, declined 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. 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. 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 It became necessary to enlarge the Marine eminently adapted to the place, who had, more- Corps, in order that it should correspond in over, been early identified with the Observatory, some degree with the general increase of other was at once placed in the position. It gives branches of the service. Under the authority me pleasure to say that in many respects the of the Act of Congress of 1849, two additions change has been an improvement, while I trust have been made to this corps, which now conthat neither the country nor the cause of science sists of 2,500 privates, but the officers, except will experience any detriment therefrom. in the force composing the staff, remain the A change or modification of the law regu-same in point of numbers as when the corps conlating the Navy ration seems necessary to meet sisted of but 1,000 men. This number is altothe existing condition of things. Nearly the gether insufficient, and it is therefore recomwhole of the present naval strength of the mended that there be an additional number country is employed on a particular service, created, and if the session is sufficiently prowhich extends along the coast, an effective longed an entire reorganization of the corps force being stationed at each of the principal may be expedient. 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 commerce. That they may do this satisfactorily, it is essential that the crews have frequent supplies of fresh provisions and other necessaries conducive to health. The Department 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 the crews. Communication with each of the 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. MASTERS AND MASTERS' MATES. There has been, from necessity, a large number of acting masters and masters' mates appointed from the commercial marine to meet the wants of the service. These officers, generally of great experience and intelligence, and occupying 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, recommend 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 Monrovia. 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 service for the fiscal year just closed, and for | tween us and the wounded men, that they (the the year ending June 30, 1862. BALTIMORE, Tuesday, July 2, 1861. A CORRESPONDENT in Winchester, Va., has forwarded the following account of the skirmish between the pickets of the Union and rebel forces near Romney It is an extract from a letter addressed to the Hon. J. M. Mason at Winchester, by a gentleman in Col. McDonald's regiment, dated: HEADQUARTERS, ROMNEY, June 27—4 A. M. Yesterday (Wednesday) Richard Ashby left, with a portion of his command, twenty-one strong, from Capt. T. Ashby's company, on a scouting expedition to Maryland. Dividing his command into three bodies, he, with six men, met a strong force of United States dragoons, regulars, and made a running fight with them, killing a number of the enemy. Himself and three of his men are missing, but two escaped, and we fear that they have been killed, as their horses were led off by the enemy. Capt. Ashby, who was also scouting with six men, hearing of the fight, immediately started in pursuit to rescue or avenge his brother. On his way he was joined by four of his men, making eleven in all. They came upon the enemy, 40 strong, hid in a gully filled with brushwood, upon the opposite side of the river, near Patterson's Creek Bridge. The enemy commenced firing upon him, when he ordered a charge, fording the river in the face of a destructive fire, and charging upon and completely routing them, they leaving all their horses behind them. Ashby's loss was two killed and two wounded, and four horses killed. His horse was killed under him. Their loss was eight or ten killed. Ashby secured enough horses, one of which was his brother's, to mount his men; but, owing to his small force, was compelled to leave others behind. Dick Ashby was terribly cut up, one of his eyes being shot out, and his head and neck badly cut by balls. Upon hearing of the fight, I immediately started for the scene of action, asking the Captain to accompany me, which he willingly did. We went to Ashby's camp, located upon the farm of Col. Washington, six miles from here, but finding that the enemy were in force be enemy) had returned, and that Capt. Ashby had gone in pursuit of them with his whole force and Capt. Myers's company, we returned to this place, and are now waiting to lend our aid at the weakest point. It is reported that a strong force of the enemy is approaching upon the north-west turnpike. We are not only ready for them, but, having reliable information that the enemy, 100 strong, are posted in Paddy Town, we have sent a force to surprise them. The expedition left before I returned from Ashby's Camp, or I would have joined them. Captain Ashby had 40 shots fired at him, and his escape was miraculous. His horse was shot twice, and killed under him, and he was wounded slightly in the leg, which has not prevented him from pursuing the enemy. This is a fighting regiment, the chaplain and surgeon fighting first and praying and doctoring afterward. Doc. 69. THE BATTLE AT FALLING WATERS. JULY 2, 1861. THE telegraphic account of the battle near Hainesville was exceedingly meagre and unsatisfactory. This fact may be accounted for by mentioning that the Government operator at Hagerstown became so excited when the account of the fight reached him, that he shouldered his musket within a quarter of an hour, to rejoin his comrades in Virginia. The gentleman who indited the original story, of which the operator used a part, is now in this city. He has extended to us the particulars of his observations, which we shall briefly communicate. Gen. Patterson's command had been waiting to cross the Potomac for some time. While encamped at Williamsport, Md., and upon the river bank below that town, Capt. McMullin's scouts, and the secret spies of Government, were making daily pilgrimages to Virginia to ascertain the character of the enemy, and his defences, and to carefully study the topography of the land. It was fully intended, a few nights before, to send the army over the river in two divisions; the first under Gen. Patterson to cross at Williamsport; the second, under Gen. Cadwalader, to cross at Sheperdstown, some miles below, and thus flank the enemy, and drive him from his position or capture him. Circumstances necessitated a counter order. The men were nightly aroused, and as often disappointed, until, on Tuesday morning, at 3 o'clock, positive orders came, and the army got under way. The ford at this place is narrow, and the river is but little deeper than a creek, being so shallow that a man may wade it without being wet above the middle. The road on the other |