pid enlargement of the establishment, which has been more than doubled within the last twelve years, defects must have been discovered, which unless speedily removed, may impair its efficiency and, finally, sap its very foundations. We know that public feeling, which, since the commencement of the late war had set with a resistless current towards the Navy, has of late been perceptibly checked. The affectionate respect and confidence with which all who have been in any way connected with this establishment, were every where greeted, has been gradually and perceptibly impaired. Trivial errors in the deportment of our officers, slight defects in their characters, have been blazoned forth by the press, with an avidity which seemed to indicate almost a malicious pleasure, while the conduct of our officers, both at home and abroad, and the services of our fleets on foreign stations, have been subjected to the severest scrutiny and most unsparing criticism. It is more than probable, that this seeming spirit of jealousy and discontent has not sprung up without some foundation, and we take for granted-what was indeed to have been expected that the relaxation from discipline, incident to a state of profound peace, and the want of the excitements of active and dangerous service, may have had an effect as injurious to the reputation of our officers, at least, as the partial shade which time has cast over the gallant achievements on which that reputation was founded. In this state of things, it has perhaps become necessary, in order to restore the Navy to that envied place in the confidence and affection of the people, where it has heretofore reposed in safety and honour, to institute at once a rigid inquiry into its present condition, subjecting to the strictest scrutiny every branch of its administration, with a view to reformation, wherever it may be found necessary. And thoroughly persuaded as we are, that the time has come, when this operation can no longer be delayed with safety, we rejoice to find that it has been undertaken as the first important act of the new administration. We fear this work has already been too long delayed. We have heard it asserted by those who have had the very best opportunities of knowing the fact, that the Navy Department has never been completely organized, and judging from facts which have from time to time come to our own knowledge, and especially from the documents which accompany the report now before us, we can have no doubt of the truth of this assertion. It appears from the report of the Secretary, which is fully supported in this respect by those of the Navy Commissioners and the Fourth Auditor of the Treasury, that in the management of the fiscal concerns of the Depart

ment, there has never existed any efficient, practical check, whereby the faithful application of the public money to the ohjects for which it is appropriated, could be secured that a strict accountability on the part of the officers entrusted with the expenditure of money for naval purposes, has never been effected-that money has constantly been transferred, almost at pleasure, from some heads of appropriation to others-that the appropriations for each year are always largely in arrear, to that which preceded it-that the pay and allowance to officers have depended much more on the ever varying discretion of successive Secretaries, than on the law regulating the subject, and, that in all the various branches of the service no regular systematic distribution of duties has ever been accomplished, or even attempted. On a careful examination of the documents before us, we have been surprized to find, how loosely (to use the mildest expression) the affairs of the Navy have been managed, and it is with unfeigned astonishment we have discovered, that the whole scheme of specific appropriation, solemnly established by the Act of 1809, has, from that time to the present, been wholly disregarded by those who have been entrusted with the administration of this department. But this is not all. It appears from the report of the Fourth Auditor, that the statements and estimates, annually submitted to Congress, have never, in a single instance, presented a true exhibit of the actual condition of any branch of naval expenditure. To put our readers in possession of the methods by which this has been accomplished, we must here make a few extracts from the Auditor's report :

"By acts of Congress it is declared, that all moneys appropriated shall be applied to the purposes for which they are appropriated, and no other, except that transfers, in certain cases, may be made by the President, from one appropriation to another. In the Navy Department, the power of transfer extends only to "Pay of the Navy," "Provisions," "Medicines and Hospital Stores," "Repairs of vessels," and "Clothing." From either of these to any other, transfers may be made within the year for which the appropriations are made; and an account of such transfers is required to be laid before Congress, within the first week of their next succeeding session. On the first of February of each year, the Secretary of the Navy is required to lay before Congress a statement, under each specific head of appropriation, of the amounts appropriated for the service of the preceding year, of the amounts expended, and of the balance remaining on hand at the close of the year. "When a Navy Agent, or other disbursing officer, wants money, he writes to the Secretary, stating the heads of appropriation under which it is wanted. The Secretary issues a requisition upon the Secretary of the Treasury for a warrant for the amount, stating each item under its

proper head of appropriation. The Comptroller countersigns it, and charges each item to the proper appropriation. The Auditer registers it, and charges the items to the disbursing officer, also under the proper heads. The officer renders his accounts for disbursements under each head, and receives a credit under each.

"There are now unclosed accounts on the fourth Auditor's books, under upwards of forty heads of appropriation. Many disbursing officers have accounts under ten or fifteen different heads, which are precisely like ten or fifteen separate accounts. Did every person, receiving money from the Navy Department, ask for it under the proper heads, expend it under the proper heads, and render his accounts under the proper heads; and had no transfers ever been made, or, when made, had they been reported to Congress, and the deficiency immediately supplied, there would have been little or no irregularity in the accounts of the Department. But the irregular and unlawful practice of the Department, encouraging and producing similar irregularity among all its fiscal officers, has defeated the object of specific appropriations, and involved its accounts in almost inextricable confusion.

"When Agents have called for money under heads of appropriation which were exhausted, former Secretaries have not hesitated to send them money under other heads. This is a virtual transfer from one appropriation to another, and a violation of law. When the officers account for this money, it stands charged to them on the Auditor's books under one head, and they obtain credit under another. The money has, in fact, been applied to purposes other than those for which it was appropriated. But, when another appropriation is obtained under the deficient head, the amount borrowed is refunded. This is another virtual transfer, and a double violation of law, because it is a transfer from one year to another.

"When the Auditor and Comptroller have settled an account belonging to a head of appropriation which is exhausted, the practice has been to pay it by an advance out of another appropriation. This is also a palpable evasion of the law; the money is applied to purposes for which it was not appropriated; the account can never be closed on the books of this office. unless Congress make another appropriation under the deficient head; and even then, it must come out of another year's appropriation.

"Millions of money have been expended by the Navy Department, for purposes other than those for which it was appropriated. The accounts now unadjusted, arising solely from these irregularities, probably embrace more than a million of dollars. Many of them are as much creditor under one head, as debtor under another; but the Auditor has no power to transfer the amounts, and close them. It is probable that thirty thousand dollars would pay all that is really due upon these accounts, and an appropriation of that sum, with power to make the necessary transfers, would furnish the means to close them. No talents or skill can adjust them without the interposition of Congress.

"In every case where a transfer is made from one appropriation to another, or where money has been forwarded under one head to be expended under another, or where an advance is made under one head

to pay a debt due under another, the Comptroller's books do not represent truly, the purposes for which the money is expended. For instance: an Agent asks for ten thousand dollars, under Pay of the Navy ;' it is sent to him under 'Provisions;' it is intended to be applied, and actually is applied to Pay; yet, on the second Comptroller's books, it is charged to Provisions, and, under that head, is reported to Congress. Hence, there has not been for many years, a correct report made to Congress, of the purposes to which the money appropriated, has been applied.

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"On recurrence to the Comptroller's report, for 1828, you will find the first column headed Balances of Appropriations on the first day of January, 1828;' the second, Appropriated in 1828;' the third, Repayments in 1828;' these three, added together, form the fourth, headed 'Amount applicable to the service of 1828;' the fifth is headed, 'Amount drawn by requisition from the Treasury, during the year 1828;' and this. subtracted from the fourth, forms the sixth, headed · Balances of Appropriations, on the 31st of December, 1828.' The first column gives the amount standing to the credit of each appropriation on the Comptroller's books, on the first day of January, 1828; but, as all transfers, made during the preceeding year, are debited to the appropriation from which the money was taken, and credited to that in aid of which the transfer is made, those balances are far from a true representation of the actual state of the several appropriations at that time. None of the principal appropriations appear to have been exhausted; yet some of them were exhausted, and had borrowed large amounts from others. The amounts, so borrowed, were repaid out of the appropriations for 1828. Before the expiration of that year, some of the appropriations were again exhausted, and sums of money again borrowed from others All sums thus refunded and borrowed, as well as all sums transferred from one head of appropriation to another, for the purpose of adjusting accounts, are included in the column of Repayments.' It is obvious that none of these sums can at all increase the 'Amount applicable to the service of the year 1828; yet they are all added in to make up the items of the columus thus headed. The bona fide repayments are small in amount. Of the $369,909 94, under the head of 'Repayments in 1828,' it is not believed that the actual repayments amount to $60,000. The report, therefore, represents that there were upwards of $300,000 applicable to the service of 1828, more than actually were so applicable.

"Indeed, the system of borrowing from one appropriation, to make up deficiencies in another, is nothing more nor less than anticipating the appropriations of the next year. For instance: Pay Afloat,' is deficient; to make up the deficiency, the Secretary borrows $10,000 out of Provisions;' this $10,000 is refunded out of the sum appropriated for 'Pay Afloat,' for the next year. Thus, $10,000 of the appropriation for Pay Afloat,' in 1828, is actually anticipated, and spent in 1827, and the amount applicable to the service of 1828, is reduced in that sum. Yet, by representing the payment of this debt as a repayment, the Comptroller's Report represents it as increasing that amount!

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"The fifth column is not a true representation of the 'Amount drawn from the Treasury, during the year 1828,' because it includes all transfer requisitions, which take nothing from the Treasury, but merely transpose the money from one appropriation to another. In some cases, that column represents the same sum of money as drawn from the Treasury twice over. It is represented as drawn from the Treasury by the requisition which transfers it from one appropriation to another; and it is represented as drawn again by the requisitions which take it from the latter appropriation and pay it out to public officers or agents. Hence, that column represents the amounts drawn from the Treasury as much greater than they really are.

"The Balances of Appropriations, on the 31st day of December, 1828,' are made up in the same manner as the balances in the first column. They are far from conveying to Congress any correct idea of the state of the appropriations.

"In fine from the Comptroller's Reports, neither Congress nor any body else can obtain any accurate information in relation to the amounts expended under each head of appropriation, or of the actual condition of the appropriations. As a system of book-keeping, exhibiting the amounts debited and credited to each appropriation, the mode of keeping these accounts in the Comptroller's office, is, doubtless, correct; but it does not enable the head of the Navy Department to give to Congress that information which the law requires. From inspection of the Comptroller's books, and conversations with those who keep them, I am satisfied, that to obtain from them correct information of the state of the appropriations, is now wholly impracticable. So many and so complicated have been the transfers, the refundings, the advances under wrong heads, &c. &c. that the skein can never be unravelled, and the only remedy for the past is to cut the knot."

We confess that on reading these and other passages of like import, we were almost induced to believe that the Auditor having but lately come into office, had in his zeal for "reform," probably deceived himself, at least, as to the extent of the practices. which he reprobates. It appears, however, from the Report of the Navy Commissioners, that Mr. Kendall is completely borne out by these gentlemen in all his material allegations. The Navy Board in speaking on the subject, distinctly says―

"The principle which confines the application of Navy appropriations to the particular objects for which they are made, or which in other phrase, declares that "the sums appropriated by law for each branch of expenditure, shall be solely applied to the objects for which they are respectively appropriated, and no other," has, in numerous instances, been violated in practice. The inquiries of the Commissioners lead them to believe, that this has been done sometimes intentionally, as the least of two evils; at other times, unintentionally, arising from misapprehension on the part of disbursing agents and others, as to the proper head of appropriation to which disbursements should be charged.