And then there’s the sour-mash component. While Presidents Johnson and Grant were going through their personal and political strifes, the excise tax that Lincoln had been forced to impose in 1862 had taken its toll on the whiskey industry. Find out how you can subscribe here … But Washington had his reasons, and although he was himself a distiller, he listened to Alexander Hamilton, Secretary of the Treasury, who proposed that the newly formed country should pay off its debts from the Revolutionary War. The fact was that since Jefferson Davis had made whiskey hard to come by, its value had increased by leaps and bounds. The U.S. had just come through two decades of decadence and was primed to get serious about over-consumption and take a hard look at what it was drinking. When Reconstruction began, President Andrew Johnson faced huge problems.
Grant’s magnificent military might, however, didn’t prepare him for the presidency. Though temperance societies had sprung up at the beginning of the nineteenth century, and grew stronger, larger, and more adamant about their quest after the Civil War, gone were the days of espousing moderation. They had no ruling monarch to worry about, could practice whatever religion they darned well pleased, and didn’t have to pay any excise taxes, but that wasn’t going to last too long--the nation had some debts that needed to be paid. Over 2,000 barrels of whiskey were shipped out of Kentucky in 1820, and it was widely known as bourbon.
After that time, surveyors and prospectors offered land for sale at very reasonable prices to pioneers heading west. In the mid-1700s, New England rum sold for around three shillings (£0.15) per gallon and was actually used in lieu of currency in what was known as the “triangle trade” with Africa and the West Indies. Even by 1939 when Charles H. Baker Jr.’s excellent book, The Gentleman’s Companion, was published, the author noted that vodka was “unnecessary to medium or small bars.”
The book serves as an indication that a number of cheap whiskeys were being produced just before and (in larger quantities) after the Civil War. Still, the government had made some changes and provided a modicum of relief for the whiskey industry, and the years that followed were to shape the business into what it has become today. They were not, however, the only group of immigrants to have a major impact on the whiskey industry, the Germans who settled in Pennsylvania and became known as the Pennsylvanian Dutch were also well versed with the alembic, and by 1775, there were just as many Germans here as Scots-Irish.
The government did allow a couple of “distillation holidays” toward the end of the war, but it would be the late 1940s to early 1950s before most distilleries were once again up and running full force with a decent supply of aged whiskey on hand. During the months leading up to Repeal, speculation was rife about how the liquor industry would handle the expected new business. He certainly wasn’t the first to take out his frustrations on whiskey-producers, just four years earlier Britain had introduced a prohibitive tax on Highland stills in Scotland and declared that the whisky produced there couldn’t be distributed outside the Highland region. While the United States was searching for an identity, certain families were forming the basis for what were to become major whiskey empires.
In the years between the settling of Kentucky and the Civil War, many minor and a few major events started to affect the whiskey business in America. George, we liked you so much and you did so many great things, why did you have to go and tax the booze.
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