There are two types of quotes, the direct quotation, and the indirect quotation, often called the paraphrase. In general, good writers of history papers tend to use the direct quotation when discussing or providing evidence from primary sources, and the paraphrase when bringing in evidence from secondary sources.

When should you paraphrase? The paraphrase is most useful when providing information about historical events that you drew from secondary sources. In general, one should always rephrase secondary sources into your own words, unless there is something about the quality of language of the secondary source to which you would like to draw the reader's attention. Be sure to notify your reader from where you are paraphrasing and why this source is of particular relevance to the topic you are addressing.

Karal Marling, a historian of the 1950s, has noted that visual culture is essential to understanding America in this period. (followed by a citation of some sort)

The post-war period, as a number of historians have observed, witnessed an explosion of consumer spending. (followed by a citation of some sort)

When should you use the direct quotation? While it is tempting when confronted with a ten - page paper to fill your paper with direct quotations, this method of paper writing tends to give the impression that the student hasn't really mastered the material, and cuts into the student's opportunity to develop and display his/her own style. Use the direct quote to:

A quotation must always form part of your own sentence. It cannot stand alone. You therefore must (a) introduce the quotation, telling the reader what it is he/she is about to read, (b) include only that part of the quote that is vital to your argument, and (c) follow the quoted material with a sentence or two explaining what is significant about the language you have chosen in terms of your main point, or argument.
For example, if I want to argue that Ghandi thought modern (Western) civilization was bad specifically because of its promotion of material greed, I might do the following:

Ghandi sees modern civilization as a threat to the Indian people because it promotes an endless cycle of selfish want. He says, “The railways, machineries and the corresponding increase of indulgent habits are the true badges of slavery of the Indian people” (p. 118). He sees such modern technologies as the railway and machines as enslaving because they require money and labor to build, solely so that such things might exist. In Ghandi’s mind, such things are not only unnecessary, they are unhelpful to a people. Happiness, he asserts, is “largely a mental condition” (p. 123). As such, it is unnecessary to acquire material goods.

(Note that in the sentences with quoted material I use an introductory phrase like “He says,” or “he asserts” to introduce the quote. The quote is therefore part of my own sentence. Note also that after the quotation I place the citation outside of the quotation marks and place the period following the citation.)

In general, your quototations should be no more than 10 words

As one enthusiast of paint by numbers wrote in his diary in 1953, "Completed the Last Supper today, very calming." (followed by a citation of some sort)

An advertisement for Columbia Records from Time magazine in 1968 encapsulated much of this tendency of American culture to transform radical threats into consumer objects. "The revolutionaries," the ad assured potential buyers, "are all on Columbia Records." (followed by a citation of some sort)

The ad assured potential buyers, "The revolutionaries are all on Columbia Records."

"The revolutionaries are all on Columbia Records," the ad assured potential buyers.

"The revolutionaries," the ad assured potential buyers, "are all on Columbia Records."