half millions of rural population.

This service ameliorates the isolation of farm life, conduces to
good roads, and quickens and extends the dissemination of general
information. Experience thus far has tended to allay the apprehension
that it would be so expensive as to forbid its general adoption or make
it a serious burden. Its actual application has shown that it increases
postal receipts, and can be accompanied by reductions in other branches
of the service, so that the augmented revenues and the accomplished
savings together materially reduce the net cost. The evidences which
point to these conclusions are presented in detail in the annual report
of the Postmaster-General, which with its recommendations is commended
to the consideration of the Congress. The full development of this
special service, however, requires such a large outlay of money that
it should be undertaken only after a careful study and thorough
understanding of all that it involves.

Very efficient service has been rendered by the Navy in connection with
the insurrection in the Philippines and the recent disturbance in China.

A very satisfactory settlement has been made of the long-pending
question of the manufacture of armor plate. A reasonable price has been
secured and the necessity for a Government armor plant avoided.

I approve of the recommendations of the Secretary for new vessels and
for additional officers and men which the required increase of the Navy
makes necessary. I commend to the favorable action of the Congress the
measure now pending for the erection of a statue to the memory of the
late Admiral David D. Porter. I commend also the establishment of a
national naval reserve and of the grade of vice-admiral. Provision
should be made, as recommended by the Secretary, for suitable rewards
for special merit. Many officers who rendered the most distinguished
service during the recent war with Spain have received in return no
recognition from the Congress.

The total area of public lands as given by the Secretary of the Interior
is approximately 1,071,881,662 acres, of which 917,135,880 acres are
undisposed of and 154,745,782 acres have been reserved for various
purposes. The public lands disposed of during the year amount to
13,453,887.96 acres, including 62,423.09 acres of Indian lands, an
increase of 4,271,474.80 over the preceding year. The total receipts
from the sale of public lands during the fiscal year were $4,379,758.1