It would provide during periods of prosperity for those adverse events to which every nation is exposed, instead of increasing the burthens of the people at a time when they are least able to bear them, or of impairing, by anticipations, the resources of ensuing generations....
"That the revenue of the United States will in subsequent years be considerably impaired by a war neither can nor ought to be concealed.

It is, on the contrary, necessary, in order to be prepared for the crisis, to take an early view of the subject, and to examine the resources which should be selected for supplying the deficiency and defraying the extraordinary expenses....
"Whether taxes should be raised to a greater amount or loans be altogether relied on for defraying the expenses of the war, is the next subject of consideration.
"Taxes are paid by the great mass of the citizens, and immediately affect almost every individual of the community.

Loans are supplied by capital previously accumulated by a few individuals.

In a country where the resources of individuals are not generally and materially affected by the war, it is practicable and wise to raise by taxes the greater part at least of the annual supplies.

The credit of the nation may also from various circumstances be at times so far impaired as to have no resource but taxation.