cally excluded us from participation. In my opinion
no choice is left to us but to pursue, moderately at least, the same
lines.

The report of the Secretary of the Navy exhibits great progress in the
construction of our new Navy. When the present Secretary entered upon
his duties, only 3 modern steel vessels were in commission. The vessels
since put in commission and to be put in commission during the winter
will make a total of 19 during his administration of the Department.
During the current year 10 war vessels and 3 navy tugs have been
launched, and during the four years 25 vessels will have been launched.
Two other large ships and a torpedo boat are under contract and the work
upon them well advanced, and the 4 monitors are awaiting only the
arrival of their armor, which has been unexpectedly delayed, or they
would have been before this in commission.

Contracts have been let during this Administration, under the
appropriations for the increase of the Navy, including new vessels and
their appurtenances, to the amount of $35,000,000, and there has been
expended during the same period for labor at navy-yards upon similar
work $8,000,000 without the smallest scandal or charge of fraud or
partiality. The enthusiasm and interest of our naval officers, both
of the staff and line, have been greatly kindled. They have responded
magnificently to the confidence of Congress and have demonstrated to
the world an unexcelled capacity in construction, in ordnance, and in
everything involved in the building, equipping, and sailing of great
war ships.

At the beginning of Secretary Tracy's administration several difficult
problems remained to be grappled with and solved before the efficiency
in action of our ships could be secured. It is believed that as the
result of new processes in the construction of armor plate our later
ships will be clothed with defensive plates of higher resisting power
than are found on any war vessels afloat. We were without torpedoes.
Tests have been made to ascertain the relative efficiency of different
constructions, a torpedo has been adopted, and the work of construction
is now being carried on successfully. We were without armor-piercing
shells and without a shop instructed and equipped for the construction
of them. We are now making what is believed to be a projectile superior
to any before in use. A smokeless powder has been developed and a
slow-burning powder for guns of large caliber. A high