by the Army and Navy, and the objects for which it was used are fully
shown in the reports of the several Secretaries. It was a most timely
appropriation, enabling the Government to strengthen its defenses and
make preparations greatly needed in case of war.

This fund being inadequate to the requirements of equipment and for the
conduct of the war, the patriotism of the Congress provided the means in
the war-revenue act of June 13 by authorizing a 3 per cent popular loan
not to exceed $400,000,000 and by levying additional imposts and taxes.
Of the authorized loan $200,000,000 were offered and promptly taken, the
subscriptions so far exceeding the call as to cover it many times over,
while, preference being given to the smaller bids, no single allotment
exceeded $5,000. This was a most encouraging and significant result,
showing the vast resources of the nation and the determination of the
people to uphold their country's honor.

It is not within the province of this message to narrate the history of
the extraordinary war that followed the Spanish declaration of April 21,
but a brief recital of its more salient features is appropriate.

The first encounter of the war in point of date took place April 27,
when a detachment of the blockading squadron made a reconnoissance in
force at Matanzas, shelled the harbor forts, and demolished several new
works in construction.

The next engagement was destined to mark a memorable epoch in maritime
warfare. The Pacific fleet, under Commodore George Dewey, had lain for
some weeks at Hongkong. Upon the colonial proclamation of neutrality
being issued and the customary twenty-four hours' notice being given,
it repaired to Mirs Bay, near Hongkong, whence it proceeded to the