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The Whiskey Rebellion: A Farmer’s Worst Nightmare. John Petrolias. Objective. Students should be able to describe Alexander Hamilton's reconstruction plan, how it led into the Whiskey Rebellion. A Nation In Debt. The American Revolution left the new nation in a deep debt crisis.
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The Whiskey Rebellion: A Farmer’s Worst Nightmare John Petrolias
Objective Students should be able to describe Alexander Hamilton's reconstruction plan, how it led into the Whiskey Rebellion.
A Nation In Debt The American Revolution left the new nation in a deep debt crisis. The United States owed $77,228,000 to people, businesses, other countries, and other sources of assistance in the Revolution. The government used bonds, a certificate that acquires money, and necessitates that the amount of money is paid off with interest, to pay off their debts.
Alexander Hamilton The person in charge of fixing the economic crisis was Alexander Hamilton. At the time, Hamilton was the U.S. Secretary of Treasury. Hamilton enlisted three parts to his reconstruction plan:
Hamilton’s Plan The U.S. Government would fully assume all federal and state debts. The U.S. Government would charter a national bank for depositing government funds. The U.S. Government would impose a high tax on goods imported into the country.
Opposition Southern states had paid off most of their debts on their own before Hamilton issued the plan. Southerners thought other states should do the same. Congress took the southerners concern into consideration, and met in 1790 to approve the plan.
Approval Congress approved the plan in 1790 Southerners ended up supporting the plan and paying for the wartime debts. In return, Congress would move the capital city in the south along the Potomac River between Virginia and Maryland. The capital is now know as the District of Columbia, or Washington D.C.
High Taxes Hamilton’s plan included the taxation of materials imported into the country. This plan was used to help the industries gain money to pay off debts. Southerners opposed this plan because most of the industries were in the North, and the South would pay for the goods they bought overseas. The goods would include the new, high tax.
The Whiskey Rebellion: • Congress didn’t approve the taxation to a large extent. • As a result, the government issued a tax on whiskey bought and sold within the United States. • This would lead to a revolt that would challenge the government’s ability to solve problems.
An Angry Backcountry Backcountry farmers made extra money by using the wheat they grew for whiskey. They thought it compared to the horrible acts such as the Stamp, Tea, and Sugar acts. They stopped growing the wheat for the whiskey and led a series of protests against the acts.
Revolt In 1794, officials in Pennsylvania were traveling to collect the tax for the whiskey. Farmers burned down an official’s home, and tortured those who came by to collect the tax. Farmers started an angry mob and protested through Pittsburgh.
Order Restored George Washington responded to this Rebellion in an orderly manner. He sent 13,000 troops in a militia to stop the protesting. When the rebels hear of the oncoming army, they scattered, and the Rebellion broke up. Washington understood why the farmers rebelled, and forgave the leaders of the Rebellion.
