The dominance of rum came to an end when Northern European immigrants became more numerous in North America and they did not want to give up their beloved food and drink. The settlement of North America took place from the East Coast with its large immigrant cities of Boston, New York (formerly New Amsterdam) and Philadelphia. As grain (rye, wheat) grew well on the soils, there was soon a surplus of grain, which the farmers made 'durable' and easier to transport by distillation. With this refinement of the grain, the farmers could earn a nice extra income on top of their otherwise meagre existence. The first distilleries were established in the states of Maryland, Pennsylvania and Virginia.

But before this could happen, the farmers had to work hard to grow or find the right ingredients for whisky production. The barley needed for fermentation grew only very sparingly on the soil and did not produce good yields. Maize, which had already been cultivated by the Indians to produce good yields, promised better results. It was soon discovered that maize could be mixed very well with barley, rye and wheat. Peat for heating the dry fires for the barley malt was not found. But there were enough forests to cover the heating needs. Unfortunately, one had to do without the smoky taste in the whisky. The lower spiciness of the whisky due to the lack of peat was compensated by the addition of hops, the use of rye and the charring of the casks. And in the untouched expanses of the new continent, abundant clean and iron-free, mineral-poor water was found.

The transition from farm distilleries to whisky distilleries took place towards the end of the 18th century. By 1850, there were over 3,000 registered stills in Pennsylvania alone.

After the end of the War of Independence against England, the young America needed additional government income to pay its debts. So George Washington, the first president of the United States of America, imposed the first taxes on alcoholic distillates in 1791. George Washington knew very well the possibilities inherent in this tax, as he himself ran a distillery.

For the large distilleries in the East, these levies did not mean much of a problem. The taxes were based on the capacity of the stills, not the quantity produced. So the six cents per gallon that distilleries with large stills had to pay was a trifle compared to the nine cents per gallon for farmers with small stills. The large distilleries in the East did not have high costs for transport and production and were able to increase their production.

The situation was different for the small farm distilleries: distillation was not just a nice sideline for the farmers: Because of the geographical location, cut off from the East by the Allegheny Mountains, they had great problems getting their grain to market. It was a much more economical solution to distil the grain and sell it as whiskey. The farmers in the western part of Pennsylvania thought the new tax regime was unfair and refused to pay.

The name Bourbon was given to American whiskey indirectly through the help of the French in the young nation's war of liberation against the English crown. After the victory over the English troops, a county in the border area between today's Indiana and Kentucky was named Bourbon in honour of the French royal house (Bourbons - French royal family 1579-1792) out of gratitude. Initially, the region of origin of the whiskey was noted on the barrels with the word Bourbon. The name Bourbon became increasingly common for whiskey from the entire region, as whiskey from Bourbon County soon became famous for its good quality. Bourbon County was divided and shifted several times over the coming centuries. However, even today there is still a county east of Lexington that bears the name Bourbon. Unfortunately, there is no longer a distillery in the entire county. It was not until 1964 that the US Congress passed a resolution clarifying the requirements for an American whiskey to be called Bourbon.

Again, it was politics that made life difficult for American whisky. The large ethnic group of Puritans managed to literally dry up America at the beginning of the 20th century. Initially, in 1917, the production and possession of alcoholic beverages was banned only for the duration of the war. After the end of the war, some states complied (e.g. Tennessee). These states were also called the dry states. In 1919, the time had come for the entire United States. Prohibition banned all consumption of alcohol. Even beer was banned. The Volstead Act became a constitutional amendment in the 18th Amendment in 1920.
From today's and Central European perspective, one cannot understand this effort by a single group of people in the country. All stocks of whiskey were destroyed. The equipment of all distilleries was removed and further used for other purposes. Such famous distilling families as the Beams, had to earn their living with a laboriously built omnibus factory. Other distilleries, such as Early Times, managed to maintain at least a skeleton operation while producing alcohol for medicinal purposes.

This so-called 'Prohibition Whiskey' was only available on prescription if it was prescribed by a doctor. The diagnosis required to enjoy this medicinal whiskey was, for example, high blood pressure, pneumonia, digestive problems or tuberculosis. In terms of production and aroma, these whiskeys were no different from those produced before Prohibition. But all Prohibition whiskeys were the same in the following respects: bottled with 50% alcohol content and the quality designation 'bottled in bond' in a bottle with a government stamp.

If Prohibition was devastating for the American distilleries, it nevertheless allowed other whisky producers (Canada, Scotland) to massively expand production. Smuggling flourished along the great American border. In the north, the Canadians supplied the USA with rye whisky. In the east, it was mainly the Dutch who took care of the illegal import. In Florida and on the American south coast, ships from the Caribbean states landed. Prohibition could no more prevent the consumption of alcoholic beverages then than America is unable to stop the import of narcotics in the long term today. The sheer size of the border made this endeavour pure utopia.

In 1933, America drew the consequence and repealed the failed Prohibition law with the 21st Amendment to the Constitution.