The amount of estimated expenditures for the remaining three quarters
of the present fiscal year will in all probability be increased from
the causes set forth in the report of the Secretary. His suggestion,
therefore, that authority should be given to supply any temporary
deficiency by the issue of a limited amount of Treasury notes is
approved, and I accordingly recommend the passage of such a law.

As stated in the report of the Secretary, the tariff of March 3,
1857, has been in operation for so short a period of time and under
circumstances so unfavorable to a just development of its results as
a revenue measure that I should regard it as inexpedient, at least for
the present, to undertake its revision.

I transmit herewith the reports made to me by the Secretaries of War and
of the Navy, of the Interior, and of the Postmaster-General. They all
contain valuable and important information and suggestions, which I
commend to the favorable consideration of Congress.

I have already recommended the raising of four additional regiments, and
the report of the Secretary of War presents strong reasons proving this
increase of the Army under existing circumstances to be indispensable.

I would call the special attention of Congress to the recommendation of
the Secretary of the Navy in favor of the construction of ten small war
steamers of light draft. For some years the Government has been obliged
on many occasions to hire such steamers from individuals to supply its
pressing wants. At the present moment we have no armed vessel in the
Navy which can penetrate the rivers of China. We have but few which can
enter any of the harbors south of Norfolk, although many millions of