A true revenue reform can not be made in a day, but must be the work of national legislation and of time.  As soon as the revenue can be dispensed with, all duty should be removed from coffee, tea and other articles of universal use not produced by ourselves.  The necessities of the country compel us to collect revenue from our imports.  An army of assessors and collectors is not a pleasant sight to the citizen, but that of a tariff for revenue is necessary.  Such a tariff, so far as it acts as an encouragement to home production, affords employment to labor at living wages, in contrast to the pauper labor of the Old World, and also in the development of home resources.

Under the act of Congress of the 15th day of July, 1870, the Army has gradually been reduced, so that on the 1st day of January, 1871, the number of commissioned officers and men will not exceed the number contemplated by that law.

The War Department building is an old structure, not fireproof, and entirely inadequate in dimensions to our present wants.  Many thousands of dollars are now paid annually for rent of private buildings to accommodate the various bureaus of the Department.  I recommend an appropriation for a new War Department building, suited to the present and growing wants of the nation.

The report of the Secretary of War shows a very satisfactory reduction in the expenses of the Army for the last fiscal year.  For details you are referred to his accompanying report.

The expenses of the Navy for the whole of the last year—­i.e., from December 1, 1869, the date of the last report—­are less than $19,000,000, or about $1,000,000 less than they were the previous year.  The expenses since the commencement of this fiscal year—­i.e., since July 1—­show for the five months a decrease of over $2,400,000 from those of the corresponding months last year.  The estimates for the current year were $28,205,671.37.  Those for next year are $20,683,317, with $955,100 additional for necessary permanent improvements.  These estimates are made closely for the mere maintenance of the naval establishment as now is, without much in the nature of permanent improvement.  The appropriations made for the last and current years were evidently intended by Congress, and are sufficient only, to keep the Navy on its present footing by the repairing and refitting of our old ships.

This policy must, of course, gradually but surely destroy the Navy, and it is in itself far from economical, as each year that it is pursued the necessity for mere repairs in ships and navy-yards becomes more imperative and more costly, and our current expenses are annually increased for the mere repair of ships, many of which must soon become unsafe and useless.  I hope during the present session of Congress to be able to submit to it a plan by which naval vessels can be built and repairs made with great saving upon the present cost.