The honorable Congress at the last session, though respectfully called on by the Executive, refused to indicate any wish or opinion in relation to the naval arm of her defense, although at the time it was engaged in foreign service unauthorized by law, and unexampled in the history of any other country; and thus was thrown upon the Executive the responsibility of keeping it employed without adequate provision or appropriations to meet the necessities of the service—of continuing it in the situation in which it then was, or, when its commander might think proper to return, of causing it to be laid up in ordinary without means for its preservation from ruin. The contract, however, under which it was absent at length expired, and it returned at a crisis when it was deemed advisable by the Executive to have it, without expense to the Government, refitted and continued in active operation. It is expected that, in a few days, the principal part of the squadron will be on the gulf prepared for active and efficient service.
In order to preserve one of the vessels from utter ruin, she has been placed in charge of an individual who is bound to refit and equip her for service, and hold her in a condition advantageous to the country. The steamship Zavala, though reputed one of the best vessels of her class in American waters, for the want of repairs and the means of preservation, is now sunk; but in such a situation that, if the Congress desire it, and she is placed at the disposition of the Executive with the necessary means, she can be repaired and rendered highly useful to the Government.
I need not urge the high importance of this branch of the public service and the necessity of maintaining it at all hazards in 9. state of efficiency. We are apprised that all the capacities and energies of our enemy are directed to the attainment of naval superiority over us upon the gulf; and unless we are in a situation to successfully compete with them, our commerce will be ruined and many calamities visited upon us. If our sea-coast is without this means of defense, we shall be in the most vulnerable condition for attack, and we may expect the infliction of wounds from which we could not readily recover. This subject and that of our military condition in connection with the report of the honorable the Secretary of War and Marine, are respectfully submitted for the examination and action of Congress.
The crisis demands the employment of all the wisdom, energy, and resources of the nation. To give efficiency to whatever course your honorable body may determine to be necessary in relation to our enemy, there must be a requisition made upon all our means, and their application must be regulated by discretion, and the most systematic and rigid rules; otherwise, every effort made by us will prove abortive and sink us but yet deeper into misfortune. At this time of great prostration in the financial concerns of the world, we, in common with every other people, experience a portion of the general inconvenience.
The plan presented to the last session of Congress in relation to the revenues of the country, was not adopted. It was recommended that the direct tax, as then existing, be reduced but one-half; but, instead of that, it was abolished — or, what amounts to the same thing, reduced so low as not to compensate for its collection. The currency, therefore, created at that session was left to rely upon the duties arising from importations; and, consequently, the demand for our issues has been confined to that channel of the revenue. Although but a fraction more than one-third of the amount authorized to be issued has been
