REPORT OF THE SECRETARY OF THE NAVY. To the President: NAVY DEPARTMENT, Washington, December 1, 1888. The presentation of this annual report affords an appropriate occasion for a brief review of the condition of the Navy as it will exist on the 4th day of March, 1889, in comparison with the same as it existed on the 4th day of March, 1885. An opinion can thereby be formed, not only as to what has been done, but as well what remains to be done toward the creation of a Navy appropriate to a country with the resources and commercial interests of the United States. In March, 1885, the United States had no vessel of war which could have kept the seas for one week as against any first-rate naval power, and was dependent upon English manufacturers for the forgings of guns, for armor, and for secondary batteries (this last item including machine and rapid-fire guns). It became necessary, therefore, to consider what the policy of the Government should be with reference to the creation of its implements of war; and it was determined that the United States ought to be independent of all other countries in that regard. In the annual report of the Department for 1886 the matter was referred to as follows: At the present time and for many years to come, in the event of a conflict with either a first or second class naval power, it would be quite impossible for the United States, as at present situated, to produce within its territory either the armor required for armored ships or the guns necessary for their armament. Nor would it be possible for the Navy of the United States to protect such articles in transit across the ocean in time of war. As at present situated the country would be entirely defenseless in the absence of any ability to produce armor or the larger high-powered guns. It is certainly a most lamentable circumstance that a country like ours, with its immense products of iron and steel, should be content to be dependent upon the manufacturers of any other nation for the fabrication of armor and high-powered guns, both of which are now essential and indispensable parts of a modern fighting ship. Whatever its commercial policy may be, in the production of its necessary implements of war, it should certainly be independent. This policy involves delay in the construction of the first vessels authorized, but at the end of five years the country would, by pursuing it, be independent and in a much stronger position in every respect than would result from any other course. # * # The adoption of a definite policy as above indicated involved a delay in the construction of all classes of armored ships of at least three years, but was determined upon without hesitation as the only course consistent with a proper regard for our national dignity and pride. The efforts of the Department were, therefore, in the first instance devoted to the problem of domesticating in this country the industries for the making of armor and of the forgings for high-powered guns. As a first step in this direction all purchases of armor and gun steel abroad were discontinued. Contracts were pending in March, 1885, for armor and gun steel purchased in England, amounting to $227,365.29. The final payments upon those contracts made subsequent to that date amounted to about $100,000; no further purchases of either armor or gun steel have been made abroad since March, 1885. As a second step, the wants of the Department for armor and gun steel were allowed to accumulate until contracts of some magnitude could be offered to the competition of domestic manufacturers, one condition of the bidding to be the erection of a plant in this country ade quate to the manufacture of both armor and gun steel up to the highest standard of European requirements. This was deemed an experiment by the Department at the time, and was accompanied with great individual effort towards enlisting the steel manufacturers in the undertaking, but resulted successfully, and upon the 1st day of June, 1887, contracts were entered into with the Bethlehem Iron Company of Bethlehem, Pa., one of the largest and most enterprising of American steel manufactories, under which the United States was guarantied that within two and one-half years from the date of the contract this country would have within its borders a plant equal to and probably the superior of any in the world for the production of armor and the forgings for high-powered guns. This, in the judgment of the Department, must be deemed to have been the first important step towards the creation of a navy modern in character. In view of the general congratulation with which the making of these contracts was received, it is proper to say that the Department in that regard reaped very largely the rewards which belonged to others. The subject had been previously investigated and reported upon by two special boards, the Gun Foundry Board, Rear-Admiral Edward Simpson, chairman, and the Board on Fortifications and other Defenses, presided over by the Secretary of War, both boards having for members Army and Navy officers of high standing and attainments upon the subject of ordnance; and further by the two special committees; of the Senate, Senator J. R. Hawley, chairman, and of the House, Representative S. J. Randall, chairman. But for the thorough elucidation of the subject which had thus previously been made, and through which the conditions of the problem had been thoroughly made known, it is not likely that the efforts of the Navy Department would have been attended with success. The Department was especially indebted to two of its own officers, Lieut. Commander Francis M. Barber, U. S. Navy, and Lieut. W. H. Jacques, U. S. Navy, who, from their familiarity with the subject as well as the high order of their talents, aided greatly in supplying the necessary information to domestic manufacturers, and seconded in every way the efforts of the Department toward enlisting practically companies having large resources and capital in the undertaking. The following is a list of armored vessels heretofore authorized by Congress: |