ovisions relating to
compensation, retirement, and other details, would, in my judgment,
be altogether fitting and proper, and would be warmly approved by the
country.

The report of the Secretary of the Navy exhibits the successful and
satisfactory management of that Department during the last fiscal
year. The total expenditures for the year were $12,916,639.45, leaving
unexpended at the close of the year $2,141,682.23 of the amount of
available appropriations. The appropriations for the present fiscal
year, ending June 30, 1881, are $15,095,061.45, and the total
estimates for the next fiscal year, ending June 30, 1882, are
$15,953,751.61. The amount drawn by warrant from July 1, 1880, to
November 1, 1880, is $5,041,570.45.

The recommendation of the Secretary of the Navy that provision be made
for the establishment of some form of civil government for the people
of Alaska is approved. At present there is no protection of persons or
property in that Territory except such as is afforded by the officers
of the United States ship _Jamestown_. This vessel was dispatched to
Sitka because of the fear that without the immediate presence of the
national authority there was impending danger of anarchy. The steps
taken to restore order have been accepted in good faith by both white
and Indian inhabitants, and the necessity for this method of restraint
does not, in my opinion, now exist. If, however, the _Jamestown_
should be withdrawn, leaving the people, as at present, without the
ordinary judicial and administrative authority of organized local
government, serious consequences might ensue.

The laws provide only for the collection of revenue, the protection of
public property, and the transmission of the mails. The problem is to
supply a local rule for a population so scattered and so peculiar in
its origin and condition. The natives are reported to be teachable and
self-supporting, and if properly instructed doubtless would advance
rapidly in civilization, and a new factor of prosperity would be added
to the national life. I therefore recommend the requisite legislation
upon this subject.

The Secretary of the Navy has taken steps toward the establishment
of naval coaling stations at the Isthmus of Panama, to meet the
requirements of our commercial relations with Central and South
America, which are rapidly growing in importance. Locations eminently
suitable, both as regards our naval purposes and the uses of commerce,