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 improvements at the several navy-yards.  The appropriations for the present fiscal year, commencing July 1, 1877, are $13,592,932.90.  The amount drawn from the Treasury from July 1 to November 1, 1877, is $5,343,037.40, of which there is estimated to be yet available $1,029,528.30, showing the amount of actual expenditure during the first four months of the present fiscal year to have been $4,313,509.10.

The report of the Postmaster-General contains a full and clear statement of the operations and condition of the Post-Office Department.  The ordinary revenues of the Department for the fiscal year ending June 30, 1877, including receipts from the money-order business and from official stamps and stamped envelopes, amounted to the sum of $27,531,585.26.  The additional sum of $7,013,000 was realized from appropriations from the general Treasury for various purposes, making the receipts from all sources $34,544,885.26.  The total expenditures during the fiscal year amounted to $33,486,322.44, leaving an excess of total receipts over total expenditures of $1,058,562.82, and an excess of total expenditures over ordinary receipts of $5,954,737.18.  Deducting from the total receipts the sum of $63,261.84, received from international money orders of the preceding fiscal year, and deducting from the total expenditures the sum of $1,163,818.20, paid on liabilities incurred in previous fiscal years, the expenditures and receipts appertaining to the business of the last fiscal year were as follows: 

  Expenditures $32,322,504.24
  Receipts (ordinary, from money-order business
    and from official postage stamps) 27,468,323.42
          
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  Excess of expenditures 4,854,180.82

The ordinary revenues of the Post-Office Department for the year ending June 30, 1879, are estimated at an increase of 3 per cent over those of 1877, making $29,034,098.28, and the expenditures for the same year are estimated at $36,427,771, leaving an estimated deficiency for the year 1879 of $7,393,672.72.  The additional legislation recommended by the Postmaster-General for improvements of the mail service and to protect the postal revenues from the abuses practiced under existing laws is respectfully commended to the careful consideration of Congress.