In the expenses of the War Department the Secretary reports a decrease of more than $9,000,000.  Of this reduction $5,600,000 was effected in the expenditures for rivers and harbors and $2,700,000 in expenditures for the Quartermaster’s Department.

Outside of that Department the annual expenses of all the Army bureaus proper (except possibly the Ordnance Bureau) are substantially fixed charges, which can not be materially diminished without a change in the numerical strength of the Army.  The expenditures in the Quartermaster’s Department can readily be subjected to administrative discretion, and it is reported by the Secretary of War that as a result of exercising such discretion in reducing the number of draft and pack animals in the Army the annual cost of supplying and caring for such animals is now $1,108,085.90 less than it was in 1881.

The reports of military commanders show that the last year has been notable for its entire freedom from Indian outbreaks.

In defiance of the President’s proclamation of July 1, 1884,[20] certain intruders sought to make settlements in the Indian Territory.  They were promptly removed by a detachment of troops.

During the past session of Congress a bill to provide a suitable fireproof building for the Army Medical Museum and the library of the Surgeon-General’s Office received the approval of the Senate.  A similar bill, reported favorably to the House of Representatives by one of its committees, is still pending before that body.  It is hoped that during the coming session the measure may become a law, and that thereafter immediate steps may be taken to secure a place of safe deposit for these valuable collections, now in a state of insecurity.

The funds with which the works for the improvement of rivers and harbors were prosecuted during the past year were derived from the appropriations of the act of August 2, 1882, together with such few balances as were on hand from previous appropriations.  The balance in the Treasury subject to requisition July 1, 1883, was $10,021,649.55.  The amount appropriated during the fiscal year 1884 was $1,319,634.62, and the amount drawn from the Treasury during the fiscal year was $8,228,703.54, leaving a balance of $3,112,580.63 in the Treasury subject to requisition July 1, 1884.

The Secretary of War submits the report of the Chief of Engineers as to the practicability of protecting our important cities on the seaboard by fortifications and other defenses able to repel modern methods of attack.  The time has now come when such defenses can be prepared with confidence that they will not prove abortive, and when the possible result of delay in making such preparation is seriously considered delay seems inexcusable.  For the most important cities—­those whose destruction or capture would be a national humiliation—­adequate defenses, inclusive of guns, may be made by the gradual expenditure of $60,000,000—­a sum much less than a victorious enemy could levy as a contribution.  An appropriation of about one-tenth of that amount is asked to begin the work, and I concur with the Secretary of War in urging that it be granted.