necessary to guard against abuse of so
important a privilege. This would enable every prudent person to set
aside a small annuity against a possible day of want.

Privileges like these would render the possession of such securities to
the amount limited most desirable to every person of small means who
might be able to save enough for the purpose. The great advantage of
citizens being creditors as well as debtors with relation to the public
debt is obvious. Men readily perceive that they can not be much
oppressed by a debt which they owe to themselves.

The public debt on the 1st day of July last, although somewhat exceeding
the estimate of the Secretary of the Treasury made to Congress at the
commencement of the last session, falls short of the estimate of that
officer made in the preceding December as to its probable amount at the
beginning of this year by the sum of $3,995,097.31. This fact exhibits a
satisfactory condition and conduct of the operations of the Treasury.

The national banking system is proving to be acceptable to capitalists
and to the people. On the 25th day of November 584 national banks had
been organized, a considerable number of which were conversions from
State banks. Changes from State systems 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 great benefit from this change in the banking
systems 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 can not be satisfactorily
conducted unless the Government can exercise a 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 defense
and to keep up and supply the requisite