The Whiskey Rebellion of 1794 is regarded as one of the first tests of federal authority in United States history and of the young nation's commitment to the constitutional rule of law.
In 1790, the new national government of the United States was attempting to establish itself. Because the government had assumed the debts incurred by the colonies during the Revolution the government was deep in debt. During the 1791 winter session of Congress both houses approved a bill that put an excise tax on all distilled spirits. United States Secretary of the Treasury, Alexander Hamilton, proposed the bill to help prevent the national debt from growing. Loud protests from all districts of the new nation soon followed. These protests were loudest in the western counties of Pennsylvania.
Acceptance of the excise tax varied with the scale of the production; large producers, who produced alcohol as a business venture, were more willing to accept the new tax. They could make an annual tax payment of six cents per gallon. A smaller producer, who only made whiskey occasionally, had to make payments throughout the year at a rate of about nine cents per gallon. Large producers could reduce the cost of the excise tax if they produced even larger quantities. Thus, the new tax gave the large producers a competitive advantage over small producers.
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