1. Challenges to the New Government

2. Whiskey Rebellion To help pay off the war debt, Washington started to tax whiskey Whiskey is an alcoholic beverage The farmers who grew the grain to make the whiskey were angry.

3. Why whiskey? Farmers had a hard time getting their grain to market, so they turned their grain into whiskey, which was easier to transport. They got more money for the whiskey anyway. Farmers traded the whiskey for salt, sugar, and other goods. Farmers used whiskey as money to get whatever supplies they needed. Farmers did not have the money to pay for the tax.

4. Unlike tariffs paid on goods imported into the United States, the excise tax on distilled spirits was a direct tax on Americans who produced whiskey and other alcohol spirits. The 1791 excise law set a varying six to 18-cent per gallon tax rate, with smaller distillers often paying more than twice per gallon what larger producers paid. All payments had to be made in cash to the Federal revenue officer appointed for the distiller's county

5. Large, commercial distillers in the eastern United States generally accepted the new excise tax since they could pass its cost onto their cash-paying customers. However, most smaller producers west of the Appalachian and Allegheny Mountains, then the Nation's frontier, opposed the "whiskey tax."

6. The Rebellion In the summer of 1794, a group of farmers in Western Pennsylvania rebelled against the whiskey tax and staged the Whiskey Rebellion. One group beat up a tax collector and coated him with tar and feathers.

7. Why do you think tax collectors were tarred and feathered?

8. The Government Responds Alexander Hamilton wanted the government to look strong. He encouraged President Washington to stop the revolt. Federal troops marched to Western Pennsylvania and put down the revolt. Washington had proved that the government would deal with people not obeying the law.

9. Why do you think Washington chose to lead the troops himself?

10. Washington’s Farewell Address Before he retired, Washington gave a farewell address (speech). In it he Warned against political parties - he thought they caused arguments Urged the nation to remain neutral and not become involved in foreign alliances. Warned against a powerful military. Urged Americans to maintain and value a sense of national unity.

11. Political Parties Despite Washington’s warnings, political parties developed. The first two political parties were the Federalists and Democratic-Republicans. The Federalists wanted a strong national government. The Democratic-Republicans thought a strong national government would lead to tyranny.

12. Hamilton versus Jefferson Alexander Hamilton led the Federalists. Thomas Jefferson led the Democratic- Republicans. Northern merchants and manufacturers became Federalists. Southern farmers and workers became Democratic-Republicans

14. John Adams Becomes 2 nd President After Washington retired, his Vice- President, John Adams became the second president. Thomas Jefferson came in second. He became Vice-President.

15. Alien and Sedition Acts President Adams was criticized for the XYZ affair by Democratic-Republican newspapers. He blamed the papers and new immigrants for his problems. To silence his critics, the Alien and Sedition Acts were passed. These acts targeted aliens —immigrants who were not yet citizens.