If the Nation is living within its income, its credit is good. If, in some crises, it lives beyond its income for a year or two, it can usually borrow temporarily at reasonable rates. But if, like a spendthrift, it throws discretion to the winds, and is willing to make no sacrifice at all in spending; if it extends its taxing to the limit of the peoples power to pay and continues to pile up deficits, then it is on the road to bankruptcy.

Summary

This quote emphasizes the importance of financial responsibility and living within one's means on a national level. It suggests that if a country manages its finances well and spends within its income, its creditworthiness is strong. In times of crisis, temporary borrowing at reasonable rates may be feasible. However, if a nation consistently and recklessly overspends without making any sacrifices, while heavily burdening its citizens with high taxes and accumulating deficits, it is heading toward financial ruin and potential bankruptcy. The quote serves as a warning against irresponsible fiscal practices.