BTtFOBT OF THE SEOBETABY OF THE NAVY. Eeturning rapidly from war to peace we look naturally for a large reduction in our naval establish ment, but at the same time we must not lose sight of the fact that the war has made us per force a great naval power, and that to maintain that position in peaoe involves our national dignity. We have pro grossed with gigantic strides in the creation of a navy, and, even dispensing with the contingent which war rendered necessary, a splendid navy remains. The Secretary's report assures us that all those ves sels which were either captured or purchased and used in service during the rebellion have been within the past year sold and returned to the merchant ser vice, the department retaining a sufficient number of ships of all kinds for the purposes of the nation. The total force afc present consists of two hundred and seventy eight vessels, armed with two thousand three hundred and fifty-one guns. Of these one hundred and fifteen vessels, carrying one thousand and twenty nine guns, are in commission, distributed chiefly among seven squadrons. The number of men in the service is thirteen thousand six hundred. The pen sion fund amounts to $11,750,000, having been in. creased $2,750,000 during the year. The expendi tures of the department for the year were $43,324,526 and the estimates for the coming year amount to $23,568,436. , The destination- and strength of the several squadrons are matteTS of much interest. The Euro pean squadron, commanded by Admiral Goldsborough, consists of ten ships, carrying one hundred and thirteen guns, and cruises along the west coast of Europe and Africa as far south as St. Paul de Loando, taking in the Mediterranean and Baltic seas, and visiting from time to time, with one or more vessels, such ports as those of Tripoli, Egypt, Syria, and Turkey, reminding those semi-barbarous nations that the great republic still keeps her starry flag afloat upon all the waters of the globe, the emblem and the safeguard of progress and freedom. The Asiatic squadron patrols the east coast of Africa and Asi*. It consists of eight ships, carrying seventy eight guns, and is commanded by Bear- Admiral Bell. Within its jurisdiction come the newly opened ports oE China and Japan, into whioh our ' advanced civilization is gradually creeping. 