time to time the sum aforesaid and to issue treasury notes therefor. Under the act the banks were authorized to discount or purchase such treasury notes. The convention subsequently, by an ordinance passed April 30, 1861, authorized the Governor to raise for the defense of the State, by treasury notes, a sum not exceeding $2,000,000. These notes are made payable to bearer and are redeemable one year after their dates, and when paid are to be canceled, and reissues are authorized for a like amount. In less than one week after the passage of the ordinance of secession the navy department was fully and effectively organized, and the report of Captain Barron, the officer in charge [which is herewith transmitted and will be found in the Appendix, marked C],* shows what has been done in an incredibly short time.
The State has had full work for all the officers, seamen, and marines embraced in this organization, and all, so far as I know or believe, have worked laboriously, cheerfully, and effectively. Besides the laborious work of removing the heavy guns and other munitions from the navy-yard to the various points upon our rivers at which the batteries are located, we have had to construct the gun carriages and to provide the necessary fixed ammunition for the batteries. Those batteries are in good working order and are effectively manned. The fact that these guns weigh from 5,000 to 10,000 pounds each, with transportation essentially by land, will show the amount of labor required to get them in position. Besides, the steam-frigate Merrimac, which had been sunk by the Federal authorities and burned to the water's edge when they deserted the navy-yard, has been raised, and is now in the naval dry-dock undergoing repairs. An effective battery has been placed on board the frigate United States, and the navy-yard itself is well prepared for vigorous defense. At Richmond the steamer Yorktown has been nearly completed as a war steamer, and a steam-tug, bought by the State, has been completely fitted up. These will soon be ready to co-operate with the other military operations and will be prepared to render efficient service.
Provisional army. -Appointments in the higher grades were confined to retired officers of the Army who had left the service of the United States. To carry into immediate effect the provisions for recruiting, appointments were made of a number of first and second lieutenants, nearly one-half of whom are graduates of the Virginia Military Institute, and they have been distributed throughout the State on recruiting service. It is now satisfactorily ascertained that while the volunteer organization is so actively pressed as it now is in our State it is impossible to raise the 10,000 men proposed by the ordinance. One regiment, perhaps, may be raised. To give employment to the young officers the commanding general has made good use of them in organizing and drilling the volunteers as they were received at the various camps of instruction. As many of them as may be required for this and the engineer service may be retained with advantage until their services shall be no longer necessary; the remainder might be disbanded, after organizing the companies already recruited.
The report of Major-General Lee is herewith transmitted, and I commend it to the attention of the convention. It presents information that cannot fail to be interesting and instructive, as it shows the progress of our military matters since the ordinance of secession was passed. [Appendix E. *] The Harper's Ferry machinery and the disposition made of it was the subject of a previous communication, and to that