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vice, the steamer Mississippi, Princeton and Union, and the small iron steamer now build- ing at the Navy Yard, Washington This increased force seems to be called for to af- ford adequate protection to our national in- terests embarked in our increased and grow ing commerce on the distant stations along our whole seaboard, from the St. Croix to the Sabine, and to our commerce with the west India Islands and with the ports on the American continent.

 The ships proposed to be employed are built and ahoat; the officers necessary to command them are mostly in commission and under pay-the deterioration of tie ships is little more while in service than when laid up Tn ordinary-the officers degenerate by idleness, while they are improved bv service.

 slight increase of officers ill the subordi- nate grades will be needed to keep this force atoat, and Is therefore recommended

 The discharge of workmen in October last IS accounted for by the heavy drafts upon the appprariation for increase, repairs, &c., in payment of contracts made, and the com pletion of works in progress funds enough, however, being left, to meet outstanding de- mands. The act of Congress which forbids the transfer of appropriations from one to onother branch of expenditure in this depart- ment has operated injuriously and the Secre- tary IS persuaded that the public interests would be promoted were Congress to autho- rize these transfers early in the ensuing ses- sion.

 The ship Franklin and the razee lndepend- ence are to be repaired at the Chalestown Navy Yard, the Constitution at Norfolk and the sloop Yorktown at New York The brig Dolphin is at Norfolk awaiting repairs.

 The department proposes to build only four small timber vessels during the coming year; and the timber being mostly on hand, no contracts for live oak are proposed to be made. The docking of timber for long pe- riods IS disproved of: and deficiency is ap- prehended in the appropriation for provis- ions and clothing for the current year.

 The Secretary strongly recommends that no spirits be allowed in the rations of those who enlist in future, and that the right of committing the spirit ration for money be continued to those already enlisted.

 An appropriation of one hundred thousand dollars was made at the last session of Con- gross for the purpose of building floating dry dock, sufficiently large to raise se- cond class frigate, on such plan as the Secre- tary of the Navy should approve, to be used at Pensacola. After various inquiries, the ex- animation of various plans and the consider ation of the offers, proposing to build it, no plan was presented on which suitable dock could be built within the limits of the appro- priation, and the Department did not feel au- thorized to enter into contract requiring larger expenditure than the sum appropriat- ed for the purpose. The plan presented by s. D. Dakin, for sectional dock, had the preference of the Department; but one of the suitable size, with the necessary machine " to work 1t, could not be built within the umappropriated. Mr. Sanger, the Engineer of the Bureau of Yards and Docks, in com pliance with the resolve of Congress, is ma king tie necessary examinations as to the practicability of using the Croton water as an elevating power for dock at New York.- Reports on these subjects are promised

 The report closes with reference to the estimates from the different bureaus and the commandant of the marine corps, of the sums that will be required for the proposed service of the coming year; and which are sent in with the Secretary's communication.