It is hardly necessary to remark that the purchase of this building in no degree obviates the necessity, heretofore frequently presented, of replacing the building assigned for the use of this department with a fire-proof structure.

The accompanying reports of the Commanding General of the army and the chiefs of the several branches of the military service, contain full and exact information in relation to the duties with which they are respectively charged. To these I refer for such details as could not be embraced in this report.

The President of The United States.

JEFFERSON DAVIS.

REPORT of the Secretary of the Navy to the President of The United States.—December 4, 1854.

SIR,

Navy Department, December 4, 1854. In the Annual report from the Navy Department, which I now have the honour to present, I have taken the liberty, in addition to the usual statement of the operations of the squadrons and the general condition of the service and the public property, to recoinmend a still further gradual increase of the navy, and to express frankly my views of the great importance of its reorganization, and the enactment of new regulations for the discipline and improvement of seamen. If they are urged with seeming pertinacity, my only apology is, a deep interest in the magnitude of the subject, and a conviction of the necessity of legislative interposition.

Squadrons.

The vessels composing the Home Squadron are, the frigate Columbia, the flag-ship, Commander S. B. Wilson; the sloops-ofwar Albany, Commander J. T. Gerry; Falmouth, Commander T. D. Shaw; and the steamers Princeton, Commander Henry Eagle; and Fulton, Lieutenant Commanding J. K. Mitchell. Commodore J. T. Newton still commands this squadron. The cruizing of the vessels of the squadron has been principally among the West India islands, and along the coasts bordering on the Caribbean sea and the Gulf of Mexico.

The Columbia returned to Norfolk, in obedience to orders from the Department, and on the 28th June sailed, under instructions to Commodore Newton, on special duty to St. Domingo. Having thoroughly surveyed the Bay of Samana and ascertained its depth and character, and examined the localities in its vicinity with reference to fitness for a convenient depôt for naval purposes, the Columbia returned to Pensacola, and is now under orders to proceed

to San Juan Nicaragua, conveying to that point Mr. Wheeler, United States' Minister Resident to Nicaragua, and Mr. Marlin, United States' Minister Resident to Guatemala. The Princeton, Commander Eagle, sailed from Norfolk, on the 31st of October, for Pensacola, and will proceed on her cruize as a part of the Home Squadron. The Albany, Commander Gerry, in pursuance of the orders of the Commodore, has been actively cruizing during the entire year, having visited, among other ports, those of Samana, Sisal, St. Thomas, La Guira, Curaçoa, Carthagena, Aspinwall, San Juan, Port Royal, and St. Jago de Cuba. She has done good service, and Commander Gerry and his officers merit the approbation of the Department, as I have reason to know that the appearance of our flag at those ports, and the bearing of the officers, contributed much to the encouragement and protection of our citizens engaged in commercial transactions in those regions.

The last official intelligence received from the Albany was on the 28th of September from Aspinwall, informing the Department that on the ensuing day she would sail for New York. There is no doubt of her having put to sea at the time mentioned. Much time having elapsed and no tidings of her having been received, it is but natural that painful anxiety should be felt, touching her fate. The prevalent opinion is, that she has sustained serious injuries from encountering storms recently prevalent in her course homeward, and that she has put into some port for repairs. With a view of obtaining information and affording relief, the steamer Princeton left Pensacola some days ago in search of the Albany. The Department still entertains the opinion that she is safe.

The Fulton, which until the 24th of April was under the command of Lieutenant James M. Watson, was in useful service, and having visited many of the Ports of the West Indies, returned to The United States. On the 17th May she left Norfolk, under the command of Lieutenant Mitchell, conveying to the port of Vera Cruz the Hon. Mr. Gadsden, our Minister to Mexico, and bearer of the Treaty recently concluded between The United States and Mexico, where she remained until the Treaty was ratified, and with it returned to the port of Washington, where she has since been necessarily detained, and is now ready for service.

The practicability of inter-oceanic communication by the construction of a ship canal across the Isthmus of Darien, between Caledonia Bay and the Caribbean Sea and the Gulf of San Miguel, on the Pacific, has long been a subject of much speculation and controversy among men of science and learning. The magnitude of the work, and wonderful influence which its successful accomplishment might exert upon the commerce. of the world, and more especially upon the intercourse between our Atlantic and Pacific

possessions, induced the Department, with your approbation to accept the services of an accomplished and enterprising officer of the Navy, Lieutenant I. G. Strain, who volunteered to undertake the exploration. The Caribbean Sea being embraced within the limits assigned as a cruizing ground for the Home Squadron, the Department concluded that the Cyane, Commander Hollins, might, with great propriety, cruize in that region, take proper soundings at Caledonia Bay, and at the same time, with but little additional expense, convey any party that might volunteer to engage in the arduous and interesting exploration. Passed Midshipman Truxton, First Assistant-Engineer J. M. Maury, Midshipman H. M. Garland, and a few civilians, and seamen from the crew of the Cyane, also volunteered to embark in the adventure. The permission of the New Grenadian Government having been cheerfully given, the Cyane sailed from Philadelphia in December last, and arrived at Porto Escoces, on Caledonia Bay, on the 17th of January. The party were landed, and proceeded to execute the special duty assigned. They succeeded in crossing the Isthmus, and returning, after encountering sufferings and hardships, and exhibiting powers of endurance, a spirit of enterprise, and a generous devotion to duty, eminently creditable to them as officers, and honourable to them as men. A few of the seamen and civilians were unable to bear up under their trying exposure, and expired. The Cyane returned with the party to New York. I refer you, however, for a more particular recital of the details of the expedition, to the interesting Report of Lieutenant Strain which accompanies this communication, from which you will perceive that he is very decidedly of opinion that the work is totally impracticable, and thus, I apprehend, settles the question for ever.

It is proper that I should remark that the officers of Her Britannic Majesty's ship Virago, on the Pacific, were prompt and generous in extending timely relief to the suffering party, and that a proper appreciation of it has been officially communicated to Her Britannic Majesty's Government.

Intelligence having been received that the property of American citizens had been improperly detained by the people of San Juan de Nicaragua; that our Minister to Central America, Hon. Mr. Borland, had been treated with rudeness and disrespect, and that the interests of our countrymen required the immediate presence of a man-of-war in that neighbourhood, the Cyane, being the most available vessel for that purpose, in obedience to instructions from the Department, put to sea again on the 19th of June.

On her arrival at San Juan, Commander Hollins, learning from Mr. Fabens, the United States Commercial Agent at that place, that the demand made by him, by order of the State Department, for a

proper reparation of wrongs committed by them, had been treated with derision and contempt, after due deliberation, thought it expedient, through Mr. Fabens, to make a final demand upon the inhabi tants for a satisfactory adjustment. As the result was entirely unsatisfactory, Commander Hollins gave notice on the 12th of July, by a proclamation posted in the most public places, that if the proposed terms of settlement were not complied with, he should at 9 a.m. of the 13th, proceed to bombard the town of San Juan, to the end that "the rights of our country and citizens may be vindicated, and as a guarantee for future protection." He had hoped that the show of a determination on his part would, at this stage of the proceedings, have brought about a satisfactory adjustment; such, however, was not the case.

His appeals for adjustment were disregarded. His proclamation was only read to be treated with contempt. His return to his country after all this, without inflicting some punishment upon these lawless and reckless people, he thought would be but a signal for a renewal of insults and outrages. Having tendered boats for the removal of property and persons to all who would avail themselves of them, he bombarded the place and destroyed most of their property, without loss of life. I could not reprove this commander for his conduct. Humanity often lends her sympathies to the sufferer, however just the punishment, but patriotism rarely condemns the brave officer who administers that punishment from a sense of justice to his countrymen whose property is destroyed and whose national flag is insulted. We may well regret the stern necessity which constrained him, but it should be remembered that Commander Hollins had been compelled but a year before to interfere and to stop these same people in their progress of destruction of American property; that he had, besides, seen the report of our Minister speaking of them as "being persons, almost without exception, of notoriously bad character-some of them discharged penitentiary convicts and refugees from justice, habitually manifesting evil dispositions towards our citizens, and indulging those dispositions to the injury of persons and property whenever they are not restrained by force," and that he was "unable to regard them in any other light than as pirates and outlaws;" that he knew that this ungoverned populace had for a season restrained an American Minister's personal liberty and rudely assailed him; that they had retained and refused to surrender the stolen property of some of our countrymen; that they contemptuously turned a deaf ear to his appeals for adjustment, and that his alternative was to inflict punishment or return to his country with a well-armed national vessel and report that he had demanded satisfaction, and, upon being treated with contempt, had felt it his duty to come home.

Rash impetuosity on the part of those who hold in their hands, to some extent, the elements of war, cannot be too strongly discountenanced. No officer should dare trifle with them. But I think that an acquaintance with all the facts and calm reflection will relieve our own people (who are justly sensitive of national honour) from any fear that a wrong has been perpetrated, and a reference to history may well silence the criticism of others.

The Cyane requiring extensive repairs, and owing to the condition of the crew from the unhealthiness of that climate and their previous exposure in the bay of Caledonia, her return to the United States became necessary. After receiving on board the archives of the Commercial Agency and Mr. Fabens and his effects, Commander Hollins proceeded to Boston, and the vessel on the 1st of September was put out of commission for the purpose of repairs, which are now completed.

The Falmouth, Commander Shaw, has been very recently put in commission, and will proceed to sea in a few days.

The Brazil Squadron, Commodore W. D. Salter, has attached to it the flag-ship Savannah, Commander Samuel Mercer; the sloop-ofwar Germantown, Commander W. F. Lynch; the brig Bainbridge, Lieut. Commanding C. G. Hunter; and the store-ship Relief, Lieut. Commanding S. C. Rowan. The store-ship Relief returned to New York on the 29th of July for fresh supplies, and having taken in her cargo, sailed for Rio on the 24th of September.

The sloop of-war Jamestown, which at my last report formed one of this quadron, having completed her cruize, returned to the United States and arrived at Philadelphia on the 2nd of May.

The steamer Water Witch, Lieut. Commanding T. J. Page, is still actively engaged in the surveys of the rivers Uruguay and Parana.

This squadron is efficiently engaged in taking care of the interests of our country in that region, with which our commercial transactions are rapidly growing.

The African Squadron, Commodore Isaac Mayo, consists of his flag-ship, the frigate Constitution, Commander J. Rudd; the sloopsof-war Marion, Commander H. Y. Purviance, and Dale, Commander Wm. C. Whittle. The brig Perry, Lieut. R. L. Page, after having been on the station 2 years, arrived at Norfolk, on the 15th of July. The Constitution and the Marion will be relieved early in the ensuing year, at which time they will have been 2 years on that station.

The vessels of this squadron have been actively, and in many instances successfully, engaged in checking the slave trade, and some of them have been regularly cruizing on the coasts most frequented by slavers. The officers in command have also had it in their power