in a
great degree defray the extraordinary expenses of war and diminish
the necessity of either loans or additional taxes. 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. In both
respects the situation of the United States is totally
dissimilar....

"An addition to the debt is doubtless an evil, but experience
having now shown with what rapid progress the revenue of the Union
increases in time of peace, with what facility the debt, formerly
contracted, has in a few years been reduced, a hope may confidently
be entertained that all the evils of the war will be temporary and
easily repaired, and that the return of peace will, without any
effort, afford ample resources for reimbursing whatever may have
been borrowed during the war."

He then enumerates the several branches of revenue which might be
selected to provide for the interest of war loans and to cover
deficiencies. First, a considerable increase of the duties on
importations; and here he says:--

"Without resorting to th