The military condition at the present time is highly encouraging; but our armies have not always been successful in the field, and many of our campaigns have ended either in disaster or without decisive results. The navy, though it has achieved much in some quarters, has not altogether answered to the reasonable expectations of the country or to the vast sums which have been expended to make it powerful and efficient. Our foreign relations, during the war, have sometimes assumed a threatening aspect, and, it must be confessed, have not always been managed with the skill and firmness due to our prominent position among the nations of the world. But there is at least one department of the Government whose general operations during all these vicissitudes have been the subject of just pride to the American people. In the midst of great difficulties, sufficient to appal and disconcert any ordinary mind, our stupendous fiscal affairs have been conducted with unrivalled firmness, ability, and success. All our military and naval operations, and indeed our whole national strength at home and abroad, have necessarily been in a large degree contingent upon the public credit, and this has remained solid and unmoved except to gain strength, in spite of all the disasters of the war on the land and on the water. The recent annual report of Mr. Chase, though chiefly confined to a simple statement of facts and figures, is like the account of some great victorious campaign, submitted by the unassuming officer who conducted it. The achievements of the Treasury are in fact the greatest of all our victories; they underlie and sustain the prowess of our armies, while they signalize the confidence and the patriotism of our whole people. Without them the peril of the Union would have been infinitely enhanced, and perhaps it would have been wholly impossible to conquer the rebellion. There was a narrow and difficult path to tread in order to avoid national bankruptcy; it was necessary within three years to raise fifteen hundred millions of dollars, and a single false step might have doubled or trebled the amount even of that enormous demand. How often has intelligent patriotism trembled to think that the failure of our finances would involve the probable futility of our sacred war for the Union, with all its tremendous sacrifices of life and property!