Introduction:
With conflict lighting up Europe, the United States decided to stay out of it and declare its neutrality in 1793. From our last Time Capsule, we learned that the decision to become neutral would prove to be a stimulus that would boost the American economy. For the next Realty Time Capsule, we will be looking at the events that impacted American real estate in 1794.
Three Key Points
1. Whiskey Rebellion: The most significant event in 1794 was the Whiskey Rebellion. The protest started in 1791 but it was only in 1794 that things reached their climax. The whiskey tax was meant to generate income for the bankrupt government but it didn’t sit well with the farmers who distilled their whiskey. In some parts of the country, the distilled drink served as a form of currency. This so-called rebellion took place in Pennsylvania and it was put down by President Washington himself leading the army. The event proved that the federal government was strong and resolute enough to take on anyone who might challenge its authority, giving more stability to the country.
2. The Signing of Jay Treaty: Officially known as the Treaty of Amity, Commerce, and Navigation, Between His Britannic Majesty and the United States of America, the Jay Treaty was a treaty between the United States and Great Britain that averted hostilities between the two countries amid the ongoing conflict of the latter with France and fixed issues that were not resolved with the 1783 Treaty of Paris.
3. Great New Orleans Fire (1794): The Great New Orleans Fire of 1788 destroyed more than 850 buildings in the city but in 1794 another fire devastated the city. This time, 212 structures were burned down. The fire started on December 8, 1794, but it was not as intense as the first one. Because New Orleans was a Spanish colony at that period, the buildings that were constructed after the fire were under the Spanish style. The signature New Orleans architecture would appear during this period.
Headline Real Estate News Stories in 1794
The event that marked 1794 as significant was the Whiskey Rebellion. For the young country, this was such an important event because it showed how far the federal government was willing to go to enforce its rule over the citizens that were under it.
The uprising was a quintessentially American rebellion as it involved ordinary citizens taking up arms on their own accord to protest a government regulation and using their firearms to enforce their will.
President Washington was able to put down the uprising without having a real confrontation with the rebels although he did raise a militia of more than 13,000. The event would have an impact on the American way of life in general.
What Historic Real Estate Events Shaped 1794?
The whiskey tax became law in 1791 and was the direct cause of the Whiskey Rebellion. It was intended to generate revenue which was badly needed to pay for the debts incurred during the Revolutionary War. The tax applied to all distilled spirits but since whiskey was becoming increasingly popular in the states, it was generally applied to it until it became known as the whiskey tax.
Economic Factors, Supply, and Demand
The ongoing war in Europe at that time presented an opportunity for the United States to grow its industries and development. It was a time of economic growth for the United States. The decision to stay neutral was a wise one that benefited the whole country.
Government Policies and Interventions
As mentioned the decision to put down the Whiskey Rebellion in 1794 by raising a militia force that numbered 13,000. The militiamen came from the states of Maryland, New Jersey, Pennsylvania, and Virginia. President Washington headed the army in the field and he was the one who dealt with the rebels personally.
Washington’s leadership resulted in the rebellion being suppressed without any real bloodshed.
Demographic Factors
In 1794, only a small portion of the North American continent was occupied by settlers. Even if the majority of the population was living on their farms and the cities were comparatively small and underdeveloped.
Societal Preferences and Trends
The trend back then was to live in small farms and to live off the land. Those who are not farmers may be artisans and they have small shops in the towns or cities.
Technological Innovations
In 1794 the patent for the cotton gin was granted to Eli Whitney. He applied for the patent in the previous year. The invention played a major role in the agriculture and the real estate industry of the Southern United States since it made cotton even more profitable.
Environmental Factors
The interior of the North American continent was still waiting to be explored more thoroughly.
Transportation and Infrastructure
When the army raised by the federal government marched it became obvious that there was a need for better roads for the country. The very poor road conditions slowed down the progress of the army. It became one of the reasons why better roads were constructed later on.
It was also in 1794 that the United States government authorized the construction of the first United States Navy vessels. This was a boost in the shipbuilding industry of the country.
That’s the Realty Time Capsule for 1794.
Watch out for our next Realty Time Capsule as we tackle the events that affected the real estate industry of the United States in 1795.
For a deeper understanding and look into these topics check out these titles:
The Whiskey Rebellion
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The Whiskey Rebellion: George Washington, Alexander Hamilton, and the Frontier Rebels Who Challenged America’s Newfound Sovereignty (Simon & Schuster America Collection) by William Hogeland
The New Orleans Fire of 1794
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Building the Land of Dreams: New Orleans and the Transformation of Early America by Eberhard L. Faber
