uced to the maximum of 25,000 enlisted men, being a reduction
of 2,500 below the force previously authorized. This reduction was
made, as required by law, entirely from the infantry and artillery
branches of the service, without any reduction of the cavalry. Under
the law as it now stands it is necessary that the cavalry regiments
be recruited to 100 men in each company for service on the Mexican
and Indian frontiers. The necessary effect of this legislation is to
reduce the infantry and artillery arms of the service below the number
required for efficiency, and I concur with the Secretary of War in
recommending that authority be given to recruit all companies of
infantry to at least 50 men and all batteries of artillery to at least
75 men, with the power, in case of emergency, to increase the former
to 100 and the latter to 122 men each.

I invite your special attention to the following recommendations of
the Secretary of War:

First. That provision be made for supplying to the Army a more
abundant and better supply of reading matter.

Second. That early action be taken by Congress looking to a complete
revision and republication of the Army Regulations.

Third. That section 1258 of the Revised Statutes, limiting the number
of officers on the retired list, be repealed.

Fourth. That the claims arising under the act of July 4, 1864, for
supplies taken by the Army during the war, be taken from the offices
of the Quartermaster and Commissary Generals and transferred to the
Southern Claims Commission, or some other tribunal having more time
and better facilities for their prompt investigation and decision than
are possessed by these officers.

Fifth. That Congress provide for an annuity fund for the families
of deceased soldiers, as recommended by the Paymaster-General of the
Army.

The report of the Secretary of the Navy shows that we have six
squadrons now engaged in the protection of our foreign commerce
and other duties pertaining to the naval service. The condition and
operations of the Department are also shown. The total expenditures
for the fiscal year ending June 30, 1877, were $16,077,974.54. There
are unpaid claims against the Department chargeable to the last year,
which are presented to the consideration of Congress by the report of
the Secretary. The estimates for the fiscal year commencing July 1,
1878, are $16,233,234.40, exclusive of the sum of $2,314,231
submitted for new buildings, repairs, and