Whiskey Rebellion
The Whiskey Rebellion was a rural uprising in the western counties of Pennsylvania in 1794 in response to a United States federal government imposed excise tax placed on liquor. The rebellion had to be put down by force, as George Washington became the only U.S. President to command troops in the field. It demonstrated that the federal government was willing to enforce laws by force. The unpopularity of this tax contributed to the resignation of Secretary of State Thomas Jefferson, who later formed the Republican Party which proved to be the downfall of the Federalist Party.
Background
After the ratification of the U.S. Constitution in 1789, the federal government assumed the debts that the states incurred during the American Revolution. In an effort to reduce the national debt, Alexander Hamilton, the Secretary of the Treasury, proposed a bill to tax distilled spirits. The bill was passed into law in 1791. The tax was not well received by farmers and distillers in the western frontier counties, primarily in Pennsylvania. Due to the difficulty of shipping grain to market, the western farmers became economically dependent on fermenting and distilling their grains in order to preserve it's lifespan. These frontier counties also operated largely on the barter system, which made it difficult for them to pay cash taxes. Believing that the federal government was acting against their interests, the frontiersmen refused to pay the tax and harassment of tax collectors became commonplace.