The Hamilton–Reynolds sex scandal opened Hamilton to disgrace, but Washington continued to hold him in "very high esteem" as the dominant force in establishing federal law and government.[307]

Whiskey Rebellion
Main article: Whiskey Rebellion
In March 1791, at Hamilton's urging, with support from Madison, Congress imposed an excise tax on distilled spirits to help curtail the national debt, which took effect in July.[308] Grain farmers strongly protested in Pennsylvania's frontier districts; they argued that they were unrepresented and were shouldering too much of the debt, comparing their situation to excessive British taxation before the Revolutionary War. On August 2, Washington assembled his cabinet to discuss how to deal with the situation. Unlike Washington, who had reservations about using force, Hamilton had long waited for such a situation and was eager to suppress the rebellion by using federal authority and force.[309] Not wanting to involve the federal government if possible, Washington called on Pennsylvania state officials to take the initiative, but they declined to take military action. On August 7, Washington issued his first proclamation for calling up state militias. 