Mr. Seward to Mr. Adams.

No. 798.]

Sir: With the instruction to you (No. 789) of the 20th ultimo, extracts from the report of Mr. Mallory, pretending to act as Secretary of the Navy for the insurgents, were transmitted, showing the proceedings in England and France for the purpose of constructing war vessels for the naval service of the insurgents. Herewith you will receive copy of the Morning Chronicle of this city, of the second part, which contains that report in full. You may make such use of the document as you may deem advisable, towards undeceiving the British government as to the schemes and acts of the insurgents, with a view to creating and equipping a naval force within British jurisdiction, intended to wage war on the shipping of the United States.

I am, sir, your obedient servant,

WILLIAM H. SEWARD.

Charles Francis Adams, Esq., &c., &c., &c.

Same, mutatis mutandis, to Mr. Dayton, No. 453.

[Page 64]

Report of the secretary of the rebel navy.

Sir: I have the honor to submit herewith my third annual report of the condition of this department. The operations of this branch of the confederate service have been chiefly confined to preparations for riding our waters of the enemy’s vessels now blockading our seaports. We have also been engaged in building, arming, and equipping iron-clads and other steamers for service in our rivers and inland sounds. On the Mississippi many vessels have done valuable service to our cause, while others, not yet completed, were either captured by the enemy or burned by our officers to prevent them from falling into the hands of the United States forces. On the 1st of January some of our naval officers manned a steamer and two schooners, in which, they sailed forth from the harbor of Galveston, and captured the United States gunboat Harriet Lane, safely withdrawing her out of the reach of the other United States vessels then blockading that port.

The Harriet Lane has since been put into complete order, and has on board a sufficient number of officers and men ready for an opportunity to distinguish themselves. Owing to the vigilance of the enemy, I have not deemed it ad visable to give orders for this vessel to attempt any offensive operations. In accordance with my instructions, the confederate steamer Florida successfully ran the blockade from Mobile on the 13th of January, since which time she has been engaged in operations against the commerce of the enemy, capturing and destroying vessels and property amounting already to several millions of dollars. On the 17th of the same month the Alabama destroyed the United States gunboat Hatteras, in the Gulf of Mexico, for which daring exploit her commander deserves the thanks of Congress. On the 31st of the same month three of our iron-clad steamers, officered and manned by some of the bravest men of our navy, succeeded in inflicting serious injury upon the blockading fleet off Charleston harbor. Two of the enemy’s vessels were disabled, and although one of them surrendered we were unable to secure the fruits of this victory, owing to the injury sustained by our own vessels by the collision that occurred.

Had the commander of this expedition been careful to strike the enemy amidships, his vessel would have remained uninjured, and our victory would have been complete. I had ordered a crew to be detached for service on the steamer Nashville, designing to use her for the purpose of harassing the enemy while erecting batteries at the mouth of the Ogechee river; but unfortunately she was destroyed by the enemy before my plans were carried out. On the 16th of April the ram Queen of the West, which we had captured from the enemy, was recaptured, and her officers and crew, numbering, one hundred and twenty persons, made prisoners. This occurrence was the result of carelessness on the part of the commander, who has since been cashiered and dismissed from the service. During the months of May and June our gunboats on the western waters actively co-operated with our land forces, and, although operating under many disadvantages, many gallant exploits were performed by their officers and crews.

Owing to the evacuation of Vicksburg and the surrender of Port Hudson, I deemed it advisable to give orders to withdraw all our vessels in that region to safe and secure harbors, and cease the construction of those contracted for, the machinery for which was being transported to the several depots. Some of this machinery is now stored at various points, and as it seems unlikely to be required for service at the west, and is unsuitable for use elsewhere, I suggest that it be sold, and the proceeds be applied to other purposes. On the seas some of our small privateers have inflicted considerable injury upon the enemy’s commerce. The Tacony entered the harbor of Portland and captured the [Page 65] United States revenue cutter Caleb dishing. Owing to ignorance of the harbor, our officers were unable to take the Gushing out to sea, and she was again recaptured on the 27th of June by vessels sent in pursuit. Her crew were made prisoners. During the months of July and August I sent twenty-seven commissioned officers and forty trustworthy petty officers to the British provinces, with orders to organize an expedition and to co-operate with army officers in an attempt to release the confederate prisoners confined on Johnson’s island, in Lake Erie.

From time to time I learned that the arrangements made were such as to insure the most complete success. A large amount of money had been expended, and just as our gallant naval officers were about to set sail on this expedition, the English authorities gave information to the enemy, and thus prevented the execution of one of the best-planned enterprises of the present war. In accordance with the order of the president, early in the present year I despatched several agents to England and France, with orders to contract for eight ironclad vessels, suitable for ocean service, and calculated to resist the ordinary armament of the wooden vessels of the enemy. These ships were to be provided with rams, and designed expressly to break the blockade of such of the ports as were not blockaded by the iron-clad monitors of the enemy. Five of these vessels were contracted for in England and three in France. Due precautions were taken against contravening laws of England in the construction and equipment of these vessels. Three have been completed, but owing to the unfriendly construction of her neutrality laws, the government of England stationed several war vessels at the mouth of the Mersey, and prevented their departure from England. Subsequently they were seized by the British government.

Another and larger vessel has since been completed; but it is doubtful if she will be allowed to leave the shores of England, although it is believed the precautions taken will exempt her from the fate of her consorts. The vessels being constructed in France have been subjected to so many official visitations that I have forwarded instructions to cease operations upon them until the result of negotiations now pending shall permit our agent to resume work upon them. In this connexion, it is proper for me to state that the great revulsion in popular sentiment, both in England and France, towards the confederate government, has rendered our efforts to obtain supplies from those countries almost abortive. In view of all possible contingencies, I have instructed the agents of this department to wait a more favorable opportunity for carrying out the instructions previously forwarded. By the last I sent instructions that will shortly be made apparent to our enemies near home. I do not deem it advisable to communicate any portion of these plans to your honorable body at the present time, for reasons perfectly satisfactory to the president. Although the operations of our navy have not been extensive, I cannot overlook the services of Captain Semmes in the Alabama.

During the year he has captured upwards of ninety vessels, seventy of which were destroyed, the others being either bonded or released. One of the greatest drawbacks this officer reports having experienced is the difficulty he now has to procure full supplies of coal. The provincial English authorities have hitherto afforded him every facility, but recently they have interpreted their neutrality laws so stringently that our war vessels and privateers are much embarrassed in obtaining suitable Supplies. I have instructed Captain Semmes to purchase coal from neutral shipmasters wherever he found it, and give them every necessary document to protect them against the effect such sale may have upon their vessels when they return to their several countries. By this means I anticipate a sufficient supply of coal will be obtained to enable him to continue his operations during the coming year. The other operations of this department have been chiefly confined to making such preparations for naval [Page 66] operations as circumstances might permit. From time to time I have caused surveys to be made upon steamers running the blockade, with a view of purchasing such as could be made available as war vessels. Several have been bought and are now being transformed into ships-of-war.

For the armament of these vessels it will be necessary that Congress should make an additional appropriation. Appropriations will also be required to conduct our naval operations during the coming year. The estimated expenditures of the department for the fiscal year ending July 1, 1864, will amount to $27,249,890, in addition to $14,024,016 remaining to the credit of this department in the treasury. Since my last annual report the expenditures for the navy have been $24,413,645. The business transacted during the year in this department has kept my very large clerical force so constantly engaged that from time to time I have ordered a number of naval officers to assist them in duties not properly devolving upon them. This course occasions so much dissatisfaction that I trust Congress will make such addition to my official staff as shall enable me to permit all our naval officers to resume their respective positions. The great disproportion of officers in our service to the seamen enrolled is a matter requiring the legislation of Congress. The number of commanders now in active service, either at sea or on shore, remains the same as previously reported.

Many of those occupying a lower grade in the service have volunteered in the army, owing to their desire to be actively employed against the enemy. I have not accepted the resignations of these gentlemen, but furnished them with temporary absences until I can recall them for the performance of other duties. I have considered it important to keep the roll as complete as possible; therefore, whenever I have been notified of the death of any naval officer, serving in the army, I have appointed his successor. The total number of commissioned officers at present attached to the confederate navy is three hundred and eighty-three. The petty officers number one hundred and ninety-one, while the roll of sailors gives a return of eight hundred and seventy-seven, not including those on board of vessels now at sea, accurate rolls not having been transmitted.

In conclusion, I must add my testimony to the gallantry and efficiency of our navy, who have nobly sustained our cause under many trying circumstances. The proud spirit of our officers chafes at the inaction they are compelled to endure; and I trust Congress will make provision for increasing the efficiency of this department, and permitting it to undertake more offensive operations against the enemy. In conclusion, I would recommend the passage of an act authorize ing the construction of at least six turreted iron-clads for harbor operations. The experience of the past year has demonstrated that such vessels are absolutely necessary if we expect to break through and destroy the blockade at present established by the enemy. Attached to this communication I have the honor to submit the various reports of different commanders and officers sent upon detached duty, together with the reports of naval agents and other officers, at home and abroad, who have been engaged on duty connected with this department.

All of which is respectfully submitted.

S. R. MALLORY, Secretary of the Navy.

Hon. T. S. Bocock, Speaker of the House of Representatives, C. S. A.

Note.—This document, as will be seen by No. 640, was afterwards ascertained to be a forgery.