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TABLE OF CONTENTS.

Table 1.-Appropriations and funds (sheets 2-16, facing p. 290).

Table 2.-Statement showing the expenditures for the Naval Establishment,
292-293.

3

ANNUAL REPORT

OF THE

SECRETARY OF THE NAVY.

To the PRESIDENT:

NAVY DEPARTMENT, Washington, December 1, 1914.

SIR: I have the honor to submit herewith the annual report of this department for the fiscal year ended June 30, 1914, including operations and recommendations and estimates to date.

The Navy was not neglected in the unparalleled record of constructive legislation made by the second session of the Sixty-third Congress. That forward-looking body evinced a true appreciation of the country's real need for a continuously healthy and normal growth of the Navy; and the legislation it enacted approved nearly every recommendation made in the department's report of last December. As a result of the ready spirit and wise discrimination of that Congress, the naval appropriation bill, decreased below last year's figures, provided for two dreadnaughts instead of one, and, later in the session, seizing upon a rare opportunity, Congress authorized the sale of two old ships, ill-adapted to the present needs of our Navy, and the construction in their stead of a powerful dreadnaught.

The second session of the Sixty-third Congress has, therefore, to its credit the authorization of three new dreadnaughts. In addition to these new dreadnaughts, there were authorized six torpedo-boat destroyers and eight or more submarines, one of which is to be a seagoing vessel, the first of its kind. The estimates for the short session call for an increase embracing dreadnaughts, destroyers, and submarines, and likewise for other craft needed. These estimates have been prepared with consideration for the needs of the service and the necessity for economy which the rigors of foreign war have imposed upon our national budget. These recommendations granted, the increase will be noteworthy and will give us a wellrounded Navy equal, if not superior, to that of any Navy in the world, ship for ship and man for man.

The past year in the Navy affords gratification to all who take pride in its growth, strength, and usefulness. In every line of

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