The Whiskey Rebellion was a significant event in American history because it proved that the U.S. government was willing and able to suppress violent opposition with military force. The events during this rebellion also played a significant role in the development of political parties.
The Whiskey Rebellion started in 1791 when Secretary of the Treasury Alexander Hamilton forced farmers who used whiskey as a means of exchange to begin paying an additional tax. Using whiskey as a form of unofficial currency played an integral role in securing the livelihoods of many farmers, because whiskey was easier to move and sell than grain in its natural state.
The reason for this new tax was to increase the government's power and fund the taking over of war debt from states who had not paid. Many of the farmers affected by this tax were also war veterans, and they were adamant about the fight against taxation without local representation.
The rebellion culminated in 1794 when more than 500 armed men attacked the guarded home of a tax inspector. President George Washington sent peace commissioners to negotiate with the rebels, while simultaneously leading an army of 13,000 soldiers to end the rebellion by force if necessary. The looming confrontation was avoided, as rebels ended up disbanding before Washington's army arrived.