Mr. Seward to Mr. Adams, January 4, 1864

Mr. Seward to Mr.
Adams.

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,

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 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 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.