During the year, including orders placed at navy yards, the following have been contracted for: Four battleships, 1 battle cruiser, 2 fuel ships, 1 transport, 1 gunboat, 1 ammunition ship, 223 destroyers, 58 submarines, 112 fabricated patrol vessels (including 12 for the Italian Government), 92 submarine chasers (including 50 for the French Government), 51 mine-sweepers, 25 seagoing tugs and 46 harbor tugs, besides a large number of lighters, barges, and other auxiliary harbor craft. In addition to this, contracts have been placed for 12 large fuel ships in conjunction with the Emergency Fleet Corporation. Ships launched during the year and up to October 1, 1918, include 1 gunboat, 93 destroyers, 29 submarines, 26 mine-sweepers, 4 fabricated patrol vessels, and 2 seagoing tugs. It is noteworthy that in the first nine months of 1918 there were launched no less than 83 destroyers of 98,281 tons aggregate normal displacement, as compared with 62 destroyers of 58,285 tons during the entire nine years next preceding January 1, 1918. There have been added to the navy during the fiscal year and including the three months up to October 1, 1918, 2 battleships, 36 destroyers, 28 submarines, 355 submarine chasers, 13 mine-sweepers and 2 seagoing tugs. There have also been added to the operating naval forces by purchase, charter, etc., many hundred vessels of commercial type, including all classes from former German transatlantic liners to harbor tugboats and motorboats for auxiliary purposes. Last year the construction of capital ships and large vessels generally had been to some extent suspended. Work continued upon vessels which had already made material progress toward completion, but was practically suspended upon those which had just been begun, or whose keels had not yet been laid. The act of July 1, 1918, required work to be actually begun upon the remaining vessels of the three-year programme within a year. This has all been planned and no difficulty in complying with the requirements of the act and pushing rapidly the construction of the vessels in question is anticipated. Advantage has been taken of the delay to introduce into the designs of the vessels which had not been laid down numerous improvements based upon war experience. WORK OVERSEAS