and herewith transmitted.

These gentlemen, I understand, entered upon the duties designated at the
times respectively stated in the schedule, and have labored faithfully
therein ever since. I therefore recommend that they be compensated at
the same rate as chaplains in the army. I further suggest that general
provision be made for chaplains to serve at hospitals, as well as with
regiments.

The report of the Secretary of the Navy presents in detail the operations
of that branch of the service, the activity and energy which have
characterized its administration, and the results of measures to increase
its efficiency and power such have been the additions, by construction and
purchase, that it may almost be said a navy has been created and brought
into service since our difficulties commenced.

Besides blockading our extensive coast, squadrons larger than ever before
assembled under our flag have been put afloat and performed deeds which
have increased our naval renown.

I would invite special attention to the recommendation of the Secretary
for a more perfect organization of the navy by introducing additional
grades in the service.

The present organization is defective and unsatisfactory, and the
suggestions submitted by the department will, it is believed, if adopted,
obviate the difficulties alluded to, promote harmony, and increase the
efficiency of the navy.

There are three vacancies on the bench of the Supreme Court--two by
the decease of Justices Daniel and McLean and one by the resignation of
Justice Campbell. I have so far forborne making nominations to fill these
vacancies for reasons which I will now state. Two of the outgoing judges
resided within the States now overrun by revolt, so that if successors
were appointed in the same localities they could not now serve upon their
circuits; and many of the most competent men there probably would not take
the personal hazard of accepting to serve, even here, upon the Supreme
bench. I have been unwilling to throw all the appointments north-ward,
thus disabling myself from doing justice to the South on the return of
peace; although I may remark that to transfer to the North one which has
heretofore been in the South would not, with reference to territory and
population, be unjust.

During the long and brilliant judicial career of Judge McLean his circuit
grew into an empire-altogether too large for any one judge to give the
courts therein more than a nominal