vide
for the permanent organization of the Signal Service, both of which were
recommended in my last annual message.

Third. That the manufacturing operations of the Ordnance Department be
concentrated at three arsenals and an armory, and that the remaining
arsenals be sold and the proceeds applied to this object by the Ordnance
Department.

The appropriations for river and harbor improvements for the current
year were $5,015,000. With my approval, the Secretary of War directed
that of this amount $2,000,000 should be expended, and no new works
should be begun and none prosecuted which were not of national
importance. Subsequently this amount was increased to $2,237,600, and
the works are now progressing on this basis.

The improvement of the South Pass of the Mississippi River, under James
B. Eads and his associates, is progressing favorably. At the present
time there is a channel of 20.3 feet in depth between the jetties at
the mouth of the pass and 18.5 feet at the head of the pass. Neither
channel, however, has the width required before payments can be made by
the United States. A commission of engineer officers is now examining
these works, and their reports will be presented as soon as received.

The report of the Secretary of the Navy shows that branch of the service
to be in condition as effective as it is possible to keep it with the
means and authority given the Department. It is, of course, not possible
to rival the costly and progressive establishments of great European
powers with the old material of our Navy, to which no increase has been
authorized since the war, except the eight small cruisers built to
supply the place of others which had gone to decay. Yet the most
has been done that was possible with the means at command; and by
substantially rebuilding some of our old ships with durable material and
completely repairing and refitting our monitor fleet the Navy has been
gradually so brought up that, though it does not maintain its relative
position among the progressive navies of the world, it is now in a
condition more powerful and effective than it ever has been in time of
peace.

The complete repairs of our five heavy ironclads are only delayed on
account of the inadequacy of the appropriations made last year for the
working bureaus of the Department, which were actually less in amount
than those made before the war, notwithstanding the greatly enhanced
price of labor and materials and the inc