It is stated in the report of the Secretary of the Navy that the naval force at this time consists of 278 vessels, armed with 2,351 guns.  Of these, 115 vessels, carrying 1,029 guns, are in commission, distributed chiefly among seven squadrons.  The number of men in the service is 13,600.  Great activity and vigilance have been displayed by all the squadrons, and their movements have been judiciously and efficiently arranged in such manner as would best promote American commerce and protect the rights and interests of our countrymen abroad.  The vessels unemployed are undergoing repairs or are laid up until their services may be required.  Most of the ironclad fleet is at League Island, in the vicinity of Philadelphia, a place which, until decisive action should be taken by Congress, was selected by the Secretary of the Navy as the most eligible location for that class of vessels.  It is important that a suitable public station should be provided for the ironclad fleet.  It is intended that these vessels shall be in proper condition for any emergency, and it is desirable that the bill accepting League Island for naval purposes, which passed the House of Representatives at its last session, should receive final action at an early period, in order that there may be a suitable public station for this class of vessels, as well as a navy-yard of area sufficient for the wants of the service on the Delaware River.  The naval pension fund amounts to $11,750,000, having been increased $2,750,000 during the year.  The expenditures of the Department for the fiscal year ending 30th June last were $43,324,526, and the estimates for the coming year amount to $23,568,436.  Attention is invited to the condition of our seamen and the importance of legislative measures for their relief and improvement.  The suggestions in behalf of this deserving class of our fellow-citizens are earnestly recommended to the favorable attention of Congress.

The report of the Postmaster-General presents a most satisfactory condition of the postal service and submits recommendations which deserve the consideration of Congress.  The revenues of the Department for the year ending June 30, 1866, were $14,386,986 and the expenditures $15,352,079, showing an excess of the latter of $965,093.  In anticipation of this deficiency, however, a special appropriation was made by Congress in the act approved July 28, 1866.  Including the standing appropriation of $700,000 for free mail matter as a legitimate portion of the revenues, yet remaining unexpended, the actual deficiency for the past year is only $265,093—­a sum within $51,141 of the amount estimated in the annual report of 1864.  The decrease of revenue compared with the previous year was 1 1/5 per cent, and the increase of expenditures, owing principally to the enlargement of the mail service in the South, was 12 per cent.  On the 30th of June last there were in operation 6,930 mail routes, with an aggregate length of 180,921 miles,