In December 1790, with other options foreclosed, Hamilton revived a proposal he had floated in his Report on Public Credit: an excise tax on whiskey and other domestic spirits. He knew the measure would be loathed in rural areas that thrived on moonshine, but he thought this might be more palatable to farmers than a land tax. Hamilton confessed to Washington an ulterior political motive for this liquor tax: he wanted to lay "hold of so valuable a resource of revenue before it was generally preoccupied by the state governments." As with assumption, he wanted to starve the states of revenue and shore up the federal government. Jefferson did not exaggerate Hamilton's canny capacity to clothe political objectives in technical garb. There were hidden agendas buried inside Hamilton's economic program, agendas that he tended to share with high-level colleagues but not always with the public. To
( Ron Chernow )
[ Alexander Hamilton ]
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