First it was Tobacco; to demonstrate that it could be done, to refine the methodology, and to establish the mantle of a righteous crusade in the public interest.
Now it's alcohol and firearms. Funny (NOT) how the searchlights of repression hold tobacco, alcohol, and firearms in a common glare.
Remember, the very
first rebellion in our Nation was about tax and alcohol, not slavery or states rights.
The tax was $.06 a gallon.
Modern equivalent of $.06 in 1800.
Taxation, etc. In his decision, Chief Justice Marshall said: “That the power of taxing it [the bank] by the States may be exercised so as to destroy it, is too obvious to be denied” (p. 427), and “That the power to tax involves the power to destroy … [is] not to be denied”
Thus, at $.06 a gallon, the rate of taxation was 25%, rendering what had been unprofitable as an agricultural endeavor prior to distillation again unprofitable as distillation as well, essentially destroying distillation as a capitalist endeavor.
The 1800s: Smashing the Booze Ceiling
A number of factors led to an explosion of alcohol consumption in the early 1800s. First, the British halted their participation in the American molasses/rum trade, objecting to its connections with slavery, while the federal government also began to tax rum in the 1790s. At the same time, the settlement of the so-called “corn belt” in the Midwest created large new supplies of corn, which was cheaper and more profitable to convert into whiskey than it was to transport great distances without spoiling. Thus,“ Western farmers could make no profit shipping corn overland to eastern markets, so they distilled corn into ‘liquid assets.’ By the 1820s, whiskey sold for twenty-five cents a gallon, making it cheaper than beer, wine, coffee, tea, or milk.”
In short, whiskey was extremely cheap and extremely available, and American consumption soared as a result. As Okrent describes in Last Call, the number of distilleries in the nation increased five-fold, to 14,000 in between 1790 and 1810. He writes that “in cities it was widely understood that common workers would fail to come to work on Mondays, staying home to wrestle with the echoes and aftershocks of a weekend binge. By 1830, the tolling of a town bell at 11 a.m. and again at 4 p.m. marked ‘grog time.’”
Note that the government's response [to the rebellion] was the spark that resulted in the creation of the Republican party.
Following years of aggression with tax collectors, the region finally exploded in a confrontation that had President Washington respond by sending troops to quell what some feared could become a full-blown revolution. Opposition to the whiskey tax and the rebellion itself built support for the Republicans, which overtook Washington’s Federalist Party for power in 1802.
The peace envoy failed, and Washington, under the auspices of the Militia Acts of 1792, assumed emergency power to assemble more than 12,000 men from the surrounding states and eastern Pennsylvania as a federal militia.
The large and well-armed militia marched into western Pennsylvania and was met with angry citizens but little violence. When a rebel army didn’t appear, the militia rounded up suspected rebels instead.
However, the rebellion’s instigators had already fled, and the militia’s prisoners weren’t involved in the rebellion. They were marched to Philadelphia to stand trial regardless. Only two men were found guilty of treason, and both were pardoned by Washington.
Vice President Burr ran for governor of New York State in 1804, and Hamilton campaigned against him as unworthy. Taking offense, Burr challenged him to a duel on July 11, 1804, in which Burr shot and mortally wounded Hamilton, who died the following day.
The federal response to the Whiskey Rebellion was widely believed to be a critical test of federal authority, one that Washington’s fledgling government met with success.
The whiskey tax that inspired the rebellion remained in effect until 1802. Under the leadership of President Thomas Jefferson and the Republican Party (which, like many citizens, opposed Hamilton’s Federalist tax policies), the tax was repealed after continuing to be almost impossible to collect.
In the years since, legislation was enacted to remedy this inadequacy, while agencies were established to enforce that legislation.
Over time, Militias were draped in disrepute, and efforts to criminalize common practices were accompanied by other orchestrated manipulations of public opinion. Much of the disrepute resulted from the government's own abuse of power under the Militia Act of 1792.
What's old is new, what's new is old...
Greg