“War breeds war. That is all it can do. War does nothing but devour valuable resources and destroy precious lives for the sole purpose of perpetuating itself. As Randolph Bourne wrote, “War is the health of the State.” War is a mechanism used by the ruling elites of the State to coerce and control the people, so it becomes essential that whenever one war is complete, another is instigated elsewhere so that the mechanism keeps running.
On the other hand, peace breeds prosperity. If War is indeed the “health of the State,” then Peace can be nothing less than the “health of the People.” Being at peace means valuable natural resources can be preserved and used at home where we need them most. Being at peace means young fathers and mothers can live and enjoy free trade, not only among themselves but with the world, instead of dying capriciously and unnecessarily, for political gain or to line the pockets of those who profit from their sacrifice.
History teaches us that the key elements to prosperity are freedom and peace. You don’t go to war with people you like, or with people you know, or with people with whom you are trading and doing business. Even after our fledgling republic was nearly torn asunder in civil war which literally pitted brother against brother and nearly destroyed the South, our reunited nation and all its people advanced and prospered after peace was restored.”

¶2. Published under "The Development of the American State," The State https://mises.org/library/state (Tucson, Arizona: See Sharp Press, 1998), p. 27.
"The State" (1918), II

As quoted in "Isis leader Abu Bakr al-Baghdadi resurfaces in audio urging supporters to join terror group", Independent (15 May 2015)
2014, 2015
Source: http://www.independent.co.uk/news/world/middle-east/isis-leader-abu-bakr-al-baghdadi-resurfaces-in-audio-urging-supporters-to-join-terror-group-10251955.html

Source: God’s War (2011), Chapter 26 (p. 197).

¶35. Published under "Psychology of the State," The State https://mises.org/library/state (Tucson, Arizona: See Sharp Press, 1998), p. 21.
"The State" (1918)
Context: All of which goes to show that the State represents all the autocratic, arbitrary, coercive, belligerent forces within a social group, it is a sort of complexus of everything most distasteful to the modern free creative spirit, the feeling for life, liberty, and the pursuit of happiness. War is the health of the State. Only when the State is at war does the modern society function with that unity of sentiment, simple uncritical patriotic devotion, cooperation of services, which have always been the ideal of the State lover. … How unregenerate the ancient State may be…is indicated by the laws against sedition, and by the Government's unreformed attitude on foreign policy.

Source: Technics and Civilization (1934), Ch. 6, sct. 11

Source: Kafka on the Shore

Page 5.
Michael Grieg quotes

First Report, p. 34
U.S. Navy at War, 1941-1945: Official Reports to the Secretary of the Navy (1946)

A paraphrased variant of this seems to have arisen on the internet around 2007: It is ... a settled policy of America, that as peace is better than war, war is better than tribute. The United States, while they wish for war with no nation, will buy peace with none.
1810s
Source: Message delivered to Dey Omar Agha, by Isaac Chauncey and William Shaler , summarizing the Treaty with Algiers (1815) http://avalon.law.yale.edu/19th_century/bar1815t.asp, and U.S attitudes and actions in the Barbary Wars, in refusing to pay ransom or tribute to pirates of the Barbary States, as quoted in History and Present Condition of Tripoli: With Some Accounts of the Other Barbary States http://books.google.com/books?id=YMwRAAAAYAAJ&pg=PA46 (1835) by Robert Greenhow, p. 46