0 in the direct expenditures,
besides promoting generally the health, morale, and discipline of the
troops.

The execution of the policy of concentrating the Army at important
centers of population and transportation, foreshadowed in the last
annual report of the Secretary, has resulted in the abandonment of
fifteen of the smaller posts, which was effected under a plan which
assembles organizations of the same regiments hitherto widely separated.
This renders our small forces more readily effective for any service
which they may be called upon to perform, increases the extent of the
territory under protection without diminishing the security heretofore
afforded to any locality, improves the discipline, training, and
_esprit de corps_ of the Army, besides considerably decreasing the
cost of its maintenance.

Though the forces of the Department of the East have been somewhat
increased, more than three-fourths of the Army is still stationed west
of the Mississippi. This carefully matured policy, which secures the
best and greatest service in the interests of the general welfare from
the small force comprising our Regular Army, should not be thoughtlessly
embarrassed by the creation of new and unnecessary posts through acts of
Congress to gratify the ambitions or interests of localities.

While the maximum legal strength of the Army is 25,000 men, the
effective strength, through various causes, is but little over 20,000
men. The purpose of Congress does not, therefore, seem to be fully
attained by the existing condition. While no considerable increase in
the Army is, in my judgment, demanded by recent events, the policy of
seacoast fortification, in the prosecution of which we have been
steadily engaged for some years, has so far developed as to suggest that
the effective strength of the Army be now made at least equal to the
legal strength. Measures taken by the Department during the year, as
indicated, have already considerably augmented the effective force,
and the Secretary of War presents a plan, which I recommend to the
consideration of Congress, to attain the desired end. Economies effected
in the Department in other lines of its work will offset to a great
extent the expenditure involved in the proposition submitted. Among
other things this contemplates the adoption of the three-battalion
formation of regiments, which for several years has been indorsed by
the Secretaries of War and the Generals Commanding the Ar