1. John Petrolias

2.  Students should be able to describe Alexander Hamilton's reconstruction plan, how it led into the Whiskey Rebellion.

3.  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.

4.  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:

5. 1. The U.S. Government would fully assume all federal and state debts. 2. The U.S. Government would charter a national bank for depositing government funds. 3. The U.S. Government would impose a high tax on goods imported into the country.

6.  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.

7.  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.

9.  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.

10. 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.

11.  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.

12.  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.

13.  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.