The navy of The United States consists of 6 ships of the line, 1 razee, 14 frigates, 21 sloops of war, 16 brigs and schooners, 3 storeships, and 8 steamers, afloat.

There are on the stocks, in an unfinished state, 4 ships of the line, 3 frigates, 1 store-ship, an iron-steamer at Pittsburg, and 1 at the navy-yard at Washington, to be used as a water-tank. Since the last annual report, after careful survey and inspection, it was found most conducive to the public interest to sell the frigate Hudson, and the store-ships Consort and Chipola, and orders have been recently given for the sale of the Pioneer. In each case, the navy agent conducting the sale was limited as to the price, and the sales are satisfactory. The Hudson was originally built by contract for a foreign Government, was found to be unworthy of repair, and it was believed to be more advantageous to sell than to break her up.

The vessels in commission have been employed as follows:

In the home squadron, the frigate Potomac, the sloops Vincennes, Vandalia and Falmouth, the brigs Somers and Lawrence, and the steamer Union, under the command of Commodore Connor. In the month of August the Vincennes returned north from the Gulf of Mexico, was put in ordinary, and her crew discharged.

In the Mediterranean Sea, the squadron was under command of Commodore Morris until he left that station in the Delaware 74 in February, when the command devolved on Commodore Joseph Smith. Our naval forces in that sea consist of the frigates Cumberland and Columbia, the sloops Plymouth and Fairfield, and the store-ship Lexington. The new sloop St. Mary's is under orders, and will proceed, as soon as she is ready for sea, to relieve the Fairfield.

On the coast of Brazil, the squadron has consisted of the Columbus 74, frigates Raritan and Congress, sloops John Adams and Boston, brig Bainbridge, and schooner Enterprize.

The Columbus, John Adams, and Enterprize, have returned home, been put in ordinary, and their crews discharged. This squadron is under the command of Commodore Daniel Turner.

In the Pacific Ocean there have been employed the frigates United States and Savannah, sloops Cyane, Levant, and Warren, schooner Shark, and store-ship Relief. The United States and Cyane have returned home, been put in ordinary, and their crews discharged. The new sloop Portsmouth, has been fitted for sea, and is under orders to join this squadron. Commodore Thomas Ap C. Jones was relieved from the command by Commodore Alexander J. Dallas, by whose lamented death, in the month of June last, the command devolved on Captain James Armstrong, the second in command. Commodore John D. Sloat has been ordered to the Pacific, to assume command on that station.

No change has been made in the vessels composing the East India

squadron since the last annual report. The frigate Brandywine arrived at Macao, with the Hon. Caleb Cushing on board, in February last. The sloop St. Louis and the brig Perry have since arrived at the same port. Both of these vessels were detained on their outward passage by the illness of Commander Cocke, of the St. Louis, and of Commander Dupont, of the Perry. To the mortification of both of these officers, and to the regret of the department, each was compelled, by the state of his health, to relinquish his command and return to The United States. Captain Mc Keever and Commander John Stone Paine were sent out to supply their places. The squadron is commanded by Commodore Foxhall A. Parker. The frigate Constellation, bearing the pennant of Commodore Kearney, returned home in April last, after a cruize of nearly 4 years. She has been laid up, and her crew discharged.

The squadron on the coast of Africa, under command of Commodore M. C. Perry, consists of the frigate Macedonian, sloops Saratoga and Decatur, and brig Porpoise, mounting 93 guns. The sloops Preble and Yorktown, and brig Truxton, have been sent out to relieve the Saratoga, Decatur, and Porpoise. The new sloop Jamestown has been launched, and is in active preparation to go to sea to relieve the Macedonian. Commodore Charles W. Skinner has been ordered to proceed in her to the station, and relieve Commodore Perry. Another sloop will be ordered to the station with all practicable despatch. The squadron, as thus constituted, will mount 83 guns. It is found that single-decked vessels are best suited to this service, and that in them the health of the officers and crews will be more secure than in those of a larger class and more difficult of ventilation. It affords me pleasure to state that the apprehensions which were entertained for the health of the squadron have not been realized. While at sea, it is found that their health is good, and the deleterious influence of the climate is only felt by those on shore. The operations of the squadron have, it is believed, exercised a favourable influence in preventing the Slave Trade. With the provision of our laws denouncing it as piracy, and the presence of our own naval forces, with authority to visit all vessels under the American flag, it is not probable that our citizens will engage in this disgraceful and perilous traffic, or our flag be used by others to any great extent.

If other Christian nations would inflict the same punishment on the offenders, it is not improbable that the trade would cease.

The store-ship Erie is about to sail from New York with stores for this squadron. The unhealthiness of a residence on shore, the influence of the climate in deteriorating provisions when in store, and the difficulties of landing them, make it very desirable to have a large and well-found store-ship permanently attached to the station.

No alteration has been made in the cruizing-grounds of the several squadrons, since the last annual report.

The following vessels have been employed on special service: the frigate Constitution, Captain Percival, sailed from New York on the 29th May last, on a cruize in the Indian Ocean. The Hon. Henry A. Wise took passage in this ship, and was landed at Rio de Janeiro on the 6th August, when she proceeded on her cruize.

The steamer Princeton, Captain Stockton, has been employed in gun-practice and experiments. She is under orders to be prepared for a cruize to test her qualities, as well under her sails as her steam, and to determine the advantages of her mode of propulsion.

The steamer Poinsett, Lieutenant Semmes, has been employed in making surveys between Apalachicola Bay and the Balize. The work is finished, and she will be laid up for the winter.

The brig Truxton, Lieutenant Upshur, returned from Constantinople in January last, with the remains of Commodore David Porter, and in June sailed to join the squadron on the coast of Africa, under command of Commander Bruce.

The steamers Colonel Harney and General Taylor were transferred from the War Department for the use of the navy.

The former has supplies for the

been employed in the transportation of recruits and navy, and is now under orders to sail without delay, under command of Lieutenant Lynch, to prevent trespasses on the live oak and other timber on the public lands between Cape Sable and the Balize, with instructions to give aid to merchant-vessels in distress during the coming winter. The General Taylor, Lieutenant Farrand, has been employed for like purposes during the past season.

The schooner Phenix and brig Oregon have been successively employed under the command of Lieutenant Arthur Sinclair, as a packet between this country and the Isthmus of Darien. The mails for the squadron, and for such of our citizens as choose to adopt this mode of conveyance, are regularly forwarded by this route. The schooner Flirt, Lieutenant Davis, will be employed in the same duty. It is believed that great advantage to the service and to the public will result from this mode of communication with the Pacific Ocean.

The Pennsylvania, at Norfolk; the North Carolina, at New York ; the Ohio, at Boston; the Experiment, at Philadelphia; the On-ka-hy-e, at Charleston; and the Ontario, at Baltimore, are employed as receiving vessels.

The force estimated for, and proposed to be employed, during the year commencing on the 1st day of July, 1845, consists of 10 frigates, 13 sloops of war, 7 brigs, 2 schooners, 4 armed steamers, 3 small steamers, 4 store-ships, and 2 small vessels.

It is not so large as that estimated for in the last annual report;

but it is somewhat larger than that authorized by the appropriations for the current fiscal year. It is confidently believed that this force may be most advantageously employed in giving protection to American commerce, which is daily enlarging its operations in every region of the globe.

The cruizing-grounds of the several squadrons are so extended, and the interests of our fellow-citizens requiring their protection so large, that it is hardly possible, with the utmost zeal and activity on the part of the officers, to visit many points where the presence of a national ship is necessary to attain this great object. To this protection they are entitled. In affording it, a high public duty is discharged; the officers and men are kept familiar and practised in their duties; and it is not believed that the public vessels sustain more damage than if kept in ordinary.

By the Act of the 17th June, 1844, it is provided that the whole number of petty officers, seamen, ordinary seamen, landsmen, and boys, in the naval service during the current fiscal year, shall not cxceed, at any one time, 7,500 men. The department promptly gave orders to suspend the enlistment of men, and to discharge the crews of the vessels as they reached our own waters, until the required reduction was effected. The line-of-battle ships have been put out of commission, except as receiving vessels, and the complements of men allowed to the several classes carefully revised, and reduced to the lowest point consistent with the safety of the vessel and the honour of the flag. It is hardly possible, in view of the changes of crews on foreign stations, to maintain any specific number with exact precision. The department has endeavoured to conform to the law, and it is believed that the measures adopted have been successful.

I deem it my duty to suggest that the reduction made by that proviso will, in my opinion, be injurious to the public interest. It precludes the employment of ships of the largest class; and if it should become the settled policy of the Government, the officers who will be required to command them, in the event of war, will not have that degree of familiarity with the order and management of ships of the line which is essential to success. There are also considerations of great weight against adopting as a maximum the number of men intended to be actually employed. In sending reliefs to squadrons abroad, it will frequently happen that the relief vessel sails before the one to be relieved returns home; while one is on the way to her station and the other on her return, there is apparently a double crew in service, but not so for any valuable purpose. With such a restriction, no public exigency or unforeseen national necessity would authorize an addition to the number, until the law could be repealed. The coast survey, the ordinary and the receiving ships, all require men, and they form a part of those allowed to the navy.

I have, therefore, caused estimates to be prepared for 9000 men for the next year; and it is believed that this number will not leave available, for the ships of war in their appropriate duty on foreign service, more than 7,500 men.

An increase of the number of pursers and surgeons is respectfully recommended. The number of the former is not sufficient to relieve the commanding officers from the necessity of performing the duties of purser. For this they are not compensated; the duties are not professional; and they are sometimes involved in apparent defalcations, for want of knowledge of accounts and of the required forms of vouchers. The duties of disbursing officer place the commander in such a relation to the crew, as to affect injuriously the discipline of the ship. If provision shall be made for the increase of the number of disbursing officers of the navy, as is earnestly recommended, it may be effected with more economy, and with great advantage, by authorizing the appointment of assistant-pursers at a small salary. 12 such officers might be employed with great advantage in the small vessels in commission. They would acquire an accurate knowledge of their duties, and constitute a class from which promotions to the more important and responsible office of purser might be advantageously made. In the British naval service, the employment of clerks in charge, in the smaller vessels, doing the duty of purser, has been approved, after long experience.

The number of surgeons and assistants is found to be below the wants of the service. The Oregon had to proceed to sea, recently, with a citizen surgeon; and the voluntary but reluctant resignation of several passed assistant-surgeons of great merit shows that the duties required of those in service are greater than they ought to be subjected to.

The measures adopted to keep a regular property account, and to enforce accountability in the purchasing and disbursing of supplies and in the public stores, have been very successful.

The inventories exhibit a very large amount of public property under the control of this department; and the returns required and the examinations to which they are subjected, will insure in a great degree against any abuse or waste in this respect.

There appeared to be a considerable quantity of articles of various kinds which were no longer fit for use. After a careful selection of those which could be made available with repair, the residue have been directed to be sold, and the proceeds carried to the head of appropriation from which they were purchased. A detailed statement of these sales will be communicated as soon as they are closed.

Under the Act of the 17th of June, 1844, and the joint resolution of 18th February, 1843, a hemp agent has been appointed for the State of Missouri. The agents for Kentucky and Missouri have been