Fiscal Chart of the United States, 1789-1870
Here is an interesting view of the finances of the U.S. government from 1789 to 1870. In the early years, the government was funded entirely by customs revenue, and debt levels were extremely low. All this changed with the onset of the Civil War of 1861-1865. Revenue exploded as the government started taxing citizens in earnest. At the same time, debt levels also exploded, as military spending went through the roof. As we know too well, internal revenue and deficit spending have not gone away.
(click to enlarge)
Click here for more charts from the U.S. Census of 1870.