But who would lend to a government
that prefaced its overtures for borrowing by an act which demonstrated
that no reliance could be placed on the steadiness of its measures for
paying? The loans it might be able to procure would be as limited in
their extent as burdensome in their conditions. They would be made upon
the same principles that usurers commonly lend to bankrupt and
fraudulent debtors, with a sparing hand and at enormous premiums.
It may perhaps be imagined that, from the scantiness of the resources of
the country, the necessity of diverting the established funds in the
case supposed would exist, though the national government should possess
an unrestrained power of taxation. But two considerations will serve to
quiet all apprehension on this head: one is, that we are sure the
resources of the community, in their full extent, will be brought into
activity for the benefit of the Union; the other is, that whatever
deficiences there may be, can without difficulty be supplied by loans.
The power of creating new funds upon new objects of taxation, by its own
authority, would enable the national government to borrow as far as its
necessities might require.
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