exceeded that of any
previous year in the history of the service, but the saving of both life
and property was greater than ever before in proportion to the value of
the property involved and to the number of persons imperiled.

The operations of the Marine-Hospital Service, the Revenue Cutter
Service, the Steamboat-Inspection Service, the Light-House Service, the
Bureau of Navigation, and other branches of public work attached to the
Treasury Department, together with various recommendations concerning
their support and improvement, are fully stated in the report of the
Secretary of the Treasury, to which the attention of the Congress is
especially invited.

The report of the Secretary of War exhibits satisfactory conditions in
the several branches of the public service intrusted to his charge.

The limit of our military force as fixed by law is constantly and
readily maintained. The present discipline and morale of our Army are
excellent, and marked progress and efficiency are apparent throughout
its entire organization.

With the exception of delicate duties in the suppression of slight
Indian disturbances along our southwestern boundary, in which the
Mexican troops cooperated, and the compulsory but peaceful return, with
the consent of Great Britain, of a band of Cree Indians from Montana to
the British possessions, no active operations have been required of the
Army during the year past.

Changes in methods of administration, the abandonment of unnecessary
posts and consequent concentration of troops, and the exercise of care
and vigilance by the various officers charged with the responsibility
in the expenditure of the appropriations have resulted in reducing to
a minimum the cost of maintenance of our military establishment.

During the past year the work of constructing permanent infantry and
cavalry posts has been continued at the places heretofore designated.
The Secretary of War repeats his recommendation that appropriations for
barracks and quarters should more strictly conform to the needs of the
service as judged by the Department rather than respond to the wishes
and importunities of localities. It is imperative that much of the money
provided for such construction should now be allotted to the erection
of necessary quarters for the garrisons assigned to the coast defenses,
where many men will be needed to properly care for and operate modern
guns. It is essential, too, that early provision be made