Debt and Natural/Civil Liberty

From David Hume’s “Of Civil Liberty” —
“The source of degeneracy, which may be remarked in free governments, consists in the practice of contracting debt, and mortgaging the public revenues, by which taxes may, in time, become altogether intolerable, and all the property of the state be brought into the hands of the public. This practice is of modern date. The ATHENIANS, though governed by a republic, paid near [200%] for those sums of money, which any emergence made it necessary for them to borrow […] Among the moderns, the DUTCH first introduced the practice of borrowing great sums at low interest, and have well nigh ruined themselves by it. Absolute princes have also contracted debt; but as an absolute prince may make a bankruptcy when he pleases, his people can never be oppressed by his debts. In popular governments, the people, and chiefly those who have the highest offices, being commonly the public creditors, it is difficult for the state to make use of this remedy, which, however it may sometimes be necessary, is always cruel and barbarous. This, therefore seems to be an inconvenience, which nearly threatens all free governments; especially our own, at the present juncture of affairs. And what a strong motive is this, to encrease our frugality of public money; lest for want of it, we be reduced, by the multiplicity of taxes, or what is worse, by our public impotence and inability for defence, to curse our very liberty, and wish ourselves in the same state of servitude with all the nations that surround us?”