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TABLE OF CONTENTS.

Table 1.-Appropriations and funds (sheets 2-16, facing p. 290).

Table 2. Statement showing the expenditures for the Naval Establishment,
292-293.

ANNUAL REPORT

OF THE

SECRETARY OF THE NAVY.

To the PRESIDENT:

NAVY DEPARTMENT, Washington, December 1, 1914.

SIR: I have the honor to submit herewith the annual report of this department for the fiscal year ended June 30, 1914, including operations and recommendations and estimates to date.

The Navy was not neglected in the unparalleled record of constructive legislation made by the second session of the Sixty-third Congress. That forward-looking body evinced a true appreciation of the country's real need for a continuously healthy and normal growth of the Navy; and the legislation it enacted approved nearly every recommendation made in the department's report of last December. As a result of the ready spirit and wise discrimination of that Congress, the naval appropriation bill, decreased below last year's figures, provided for two dreadnaughts instead of one, and, later in the session, seizing upon a rare opportunity, Congress authorized the sale of two old ships, ill-adapted to the present needs of our Navy, and the construction in their stead of a powerful dreadnaught.

The second session of the Sixty-third Congress has, therefore, to its credit the authorization of three new dreadnaughts. In addition to these new dreadnaughts, there were authorized six torpedo-boat destroyers and eight or more submarines, one of which is to be a seagoing vessel, the first of its kind. The estimates for the short session call for an increase embracing dreadnaughts, destroyers, and submarines, and likewise for other craft needed. These estimates have been prepared with consideration for the needs of the service and the necessity for economy which the rigors of foreign war have imposed upon our national budget. These recommendations granted, the increase will be noteworthy and will give us a wellrounded Navy equal, if not superior, to that of any Navy in the world, ship for ship and man for man.

The past year in the Navy affords gratification to all who take pride in its growth, strength, and usefulness. In every line of

progress and achievement it has demonstrated its steady advance and efficiency. For the first time in many years the enlistment is up to the limit prescribed by Congress. The present enlistment is 52,667, or 4,612 greater than in 1913, and so attractive has the service become to the youth of the land that it has been possible to have a waiting list, and it is a fact that picked men alone, of exceptional qualities, mental and moral, and of fine physical type, are now admitted; for out of 88,943 applicants for enlistment 13,780 new men were accepted. Not only is the Navy up to its prescribed quota as to numbers, but the popularity of the service renders unnecessary strained or unusual methods to attract a sufficient number of young men. The welfare of these young men who are so freely offering themselves for their country's service has been by no means neglected. As will appear hereafter, their pathway to the Naval Academy, the Line, and the Pay Corps has been facilitated, and their physical comfort has been materially improved. Their avenues of promotion are not as numerous as they should be, or as they will be. It must be true in the American Navy that every sailor carries an admiral's flag in his ditty box, as Napoleon said it was true of the army of France, that "every soldier carries a marshal's baton in his knapsack." The conviction is strong and growing stronger in the Navy that the best discipline is promoted by friendly relations and mutual understanding between officers and men. This is but a world-wide truth and was recently voiced by President Poincare of France, when he said: "There is being established between the commanding officers and the men a confidential intimacy which, far from undermining discipline, ennobles it further by an enlightened consciousness of solidarity in devotion and sacrifice."

From the highest rank to the newest recruit there has been manifested a spirit of comradeship and cooperation and ambition. These essential qualities are seen and felt in every line of effort—whether under fire at Vera Cruz; at target practice where the steady hand and the quick brain are indispensable; in aeronautics, which have realized the dream of Tennyson

Saw the heavens fill with commerce, argosies of magic sails,
Pilots of the purple twilight, dropping down the costly bales;
Heard the heavens fill with shouting, and there rain'd a ghastly dew,
From the nations' airy navies grappling in the central blue;

in the submarines, where Jules Verne's vision of "Twenty Thousand Leagues Under the Sea" has been translated from the realm of fiction to the realm of fact, and become a record of everyday work of the Navy in action; in the schoolroom or the workshop; walking the deck or manning the gun, or conquering the currents of the air by wireless. In a word, in every activity of our many-sided service,

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