During the past year we have reduced our force in Cuba and Puerto Rico, In Cuba we now have 334 officers and 10,796 enlisted men; In Puerto Rico, 87 officers and 2,855 enlisted men and a battalion of 400 men composed of native Puerto Ricans; while stationed throughout the United States are 910 officers and 17,317 men, and in Hawaii 12 officers and 453 enlisted men.

The operations of the Army are fully presented in the report of the Secretary of War.  I cannot withhold from officers and men the highest commendation for their soldierly conduct in trying situations, their willing sacrifices for their country, and the integrity and ability with which they have performed unusual and difficult duties in our island possessions.

In the organization of the volunteer regiments authorized by the act of March 2, 1899, it was found that no provision had been made for chaplains.  This omission was doubtless from inadvertence.  I recommend the early authorization for the appointment of one chaplain for each of said regiments.  These regiments are now in the Philippines, and it is important that immediate action be had.

In restoring peaceful conditions, orderly rule, and civic progress in Cuba, Puerto Rico, and, so far as practicable, in the Philippines, the rehabilitation of the postal service has been an essential and important part of the work.  It became necessary to provide mail facilities both for our forces of occupation and for the native population.  To meet this requirement has involved a substantial reconstruction.  The existing systems were so fragmentary, defective, and inadequate that a new and comprehensive organization had to be created.  American trained officials have been assigned to the directing and executive positions, while natives have been chiefly employed in making up the body of the force.  In working out this plan the merit rule has been rigorously and faithfully applied.

The appointment of Director-General of Posts of Cuba was given to an expert who had been Chief Post-Office Inspector and Assistant Postmaster-General, and who united large experience with administrative capacity.  For the postmastership at Havana the range of skilled and available men was scanned, and the choice fell upon one who had been twenty years in the service as deputy postmaster and postmaster of a large city.  This principle governed and determined the selection of the American officials sent not only to Cuba, but to Puerto Rico and the Philippines, and they were instructed to apply it so far as practicable in the employment of the natives as minor postmasters and clerks.  The postal system in Cuba, though remaining under the general guidance of the Postmaster-General, was made essentially independent.  It was felt that it should not be a burden upon the postal service of the United States, and provision was made that any deficit in the postal revenue should be a charge upon the general revenues of the island.