“The National banking system is proving to be acceptable to capitalists and the people. On the 25th day of November, five hundred and eighty-four National Banks had been organized, a considerable number of which were conversions from State banks. Changes from the State system to the National system are rapidly taking place, and it is hoped that very soon there will be in the United States no banks of issue not authorized by Congress, and no bank-note circulation not secured by the government. That the government and the people will derive general benefit from this change in the banking system of the country can hardly be questioned. “The National system will create a reliable and permanent influence in support of the national credit, and protect the people against losses in the use of paper money. Whether or not any further legislation is advisable for the suppression of State bank issues, it will be for Congress to determine. It seems quite clear that the Treasury cannot be satisfactorily conducted unless the government can exercise restraining power over the bank-note circulation of the country. “The Report of the Secretary of War, and the accompanying documents, will detail the campaigns of the armies in the field since the date of the last annual Message, and also the operations of the several administrative bureaus of the War Department during the last year. “It will also specify the measures deemed essential for the national defence, and to keep up and supply the requisite military force. “The Report of the Secretary of the Navy presents a comprehensive and satisfactory exhibit of the affairs of that department and of the naval service. It is a subject of congratulation and laudable pride to our countrymen, that a navy of such vast proportions has been organized in so brief a period and conducted with so much efficiency and success. “The general exhibits of the Navy, including vessels under construction, on the first of December, 1864, shows a total of 671 vessels, carrying 4,610 guns, and 510,396 tons--being an actual increase during the year over and above all losses by shipwreck or in battle, of 83 vessels, 167 guns, and 42,427 tons. The total number at this time in the naval service, including officers, is about 51,000. There have been captured by the Navy during the year, 324 vessels, and the whole number of naval captures since hostilities commenced is 1,379, of which 267 are steamers. The gross proceeds arising from the sale of condemned prize property, thus far reported, amount to $14,396,250 51.