ercoming these
difficulties.

The Brazil Steamship Company, by reason of a miscalculation as to
the speed of its vessels, was not able to bid under the terms of the
advertisement. The policy of the Department was to secure from the
established lines an improved service as a condition of giving to them
the benefits of the law. This in all instances has been attained. The
Postmaster-General estimates that an expenditure in American shipyards
of about $10,000,000 will be necessary to enable the bidders to
construct the ships called for by the service which they have accepted.
I do not think there is any reason for discouragement or for any turning
back from the policy of this legislation. Indeed, a good beginning has
been made, and as the subject is further considered and understood by
capitalists and shipping people new lines will be ready to meet future
proposals, and we may date from the passage of this law the revival of
American shipping interests and the recovery of a fair share of the
carrying trade of the world. We were receiving for foreign postage
nearly $2,000,000 under the old system, and the outlay for ocean mail
service did not exceed $600,000 per annum. It is estimated by the
Postmaster-General that if all the contracts proposed are completed it
will require $247,354 for this year in addition to the appropriation for
sea and inland postage already in the estimates, and that for the next
fiscal year, ending June 30, 1893, there would probably be needed about
$560,000.

The report of the Secretary of the Navy shows a gratifying increase of
new naval vessels in commission. The _Newark, Concord, Bennington_, and
_Miantonomoh_ have been added during the year, with an aggregate of
something more than 11,000 tons. Twenty-four warships of all classes are
now under construction in the navy-yards and private shops; but while
the work upon them is going forward satisfactorily, the completion of
the more important vessels will yet require about a year's time. Some
of the vessels now under construction, it is believed, will be triumphs
of naval engineering. When it is recollected that the work of building
a modern navy was only initiated in the year 1883, that our naval
constructors and shipbuilders were practically without experience in the
construction of large iron or steel ships, that our engine shops were
unfamiliar with great marine engines, and that the manufacture of steel
forgings for guns and plates was almos