The amount of estimated expenditures for the remaining three quarters of the present fiscal year will in all probability be increased from the causes set forth in the report of the Secretary.  His suggestion, therefore, that authority should be given to supply any temporary deficiency by the issue of a limited amount of Treasury notes is approved, and I accordingly recommend the passage of such a law.

As stated in the report of the Secretary, the tariff of March 3, 1857, has been in operation for so short a period of time and under circumstances so unfavorable to a just development of its results as a revenue measure that I should regard it as inexpedient, at least for the present, to undertake its revision.

I transmit herewith the reports made to me by the Secretaries of War and of the Navy, of the Interior, and of the Postmaster-General.  They all contain valuable and important information and suggestions, which I commend to the favorable consideration of Congress.

I have already recommended the raising of four additional regiments, and the report of the Secretary of War presents strong reasons proving this increase of the Army under existing circumstances to be indispensable.

I would call the special attention of Congress to the recommendation of the Secretary of the Navy in favor of the construction of ten small war steamers of light draft.  For some years the Government has been obliged on many occasions to hire such steamers from individuals to supply its pressing wants.  At the present moment we have no armed vessel in the Navy which can penetrate the rivers of China.  We have but few which can enter any of the harbors south of Norfolk, although many millions of foreign and domestic commerce annually pass in and out of these harbors.  Some of our most valuable interests and most vulnerable points are thus left exposed.  This class of vessels of light draft, great speed, and heavy guns would be formidable in coast defense.  The cost of their construction will not be great and they will require but a comparatively small expenditure to keep them in commission.  In time of peace they will prove as effective as much larger vessels and more useful.  One of them should be at every station where we maintain a squadron, and three or four should be constantly employed on our Atlantic and Pacific coasts.  Economy, utility, and efficiency combine to recommend them as almost indispensable.  Ten of these small vessels would be of incalculable advantage to the naval service, and the whole cost of their construction would not exceed $2,300,000, or $230,000 each.