great interest. It
consists of:

1. The military operations of the year, detailed in the report of the
General in Chief.

2. The organization of colored persons into the war service.

3. The exchange of prisoners, fully set forth in the letter of General
Hitchcock.

4. The operations under the act for enrolling and calling out the national
forces, detailed in the report of the Provost Marshal General.

5. The organization of the invalid corps, and

6. The operation of the several departments of the Quartermaster-General,
Commissary-General, Paymaster-General, Chief of Engineers, Chief of
Ordnance, and Surgeon-General.

It has appeared impossible to make a valuable summary of this report,
except such as would be too extended for this place, and hence I content
myself by asking your careful attention to the report itself.

The duties devolving on the naval branch of the service during the year
and throughout the whole of this unhappy contest have been discharged with
fidelity and eminent success. The extensive blockade has been constantly
increasing in efficiency as the Navy has expanded, yet on so long a line
it has so far been impossible to entirely suppress illicit trade. From
returns received at the Navy Department it appears that more than 1,000
vessels have been captured since the blockade was instituted? and that
the value of prizes already sent in for adjudication amounts to over
$13,000,000.

The naval force of the United States consists at this time of five hundred
and eighty-eight vessels completed and in the course of completion, and of
these seventy-five are ironclad or armored steamers. The events of the war
give an increased interest and importance to the Navy which will probably
extend beyond the war itself.

The armored vessels in our Navy completed and in service, or which are
under contract and approaching completion, are believed to exceed in
number those of any other power; but while these may be relied upon for
harbor defense and coast service, others of greater strength and capacity
will be necessary for cruising purposes and to maintain our rightful
position on the ocean.

The change that has taken place in naval vessels and naval warfare since
the introduction of steam as a motive power for ships of war demands
either a corresponding change in some of our existing navy yards or the
establishment of new ones for the construction and necessary repair of
modern naval vessels. No incons