The Rum Rebellion occurred on 26 January 1808. This was the day that Governor Bligh (New South Wales) was overthrown and replaced with a military Junta. Although known as the Rum Rebellion, it had nothing to do with rum. The name came about because Bligh asserted that John Macarthur's main attack against the him came about because of his prohibition on Spirits. It was a power struggle between Bligh and the NSW Corps (The army of the colony and an offshoot of the Marines who came on the First Fleet). The Corps had been plagued with corruption and had monopolised the local trade.
When Bligh came from England, he sought to end these blights. However, the corps and one of the most powerful men in Australia at the time, John Macarthur, did not like this. After several incidents, including the arrest of Macarthur and then the folly of his trial, Macarthur convinced a Corps Major, George Johnston, to stage a coup against Bligh.
The NSW Corps marched into Bligh's residence and imposed martial law upon the colony. It is reported that the Corps found Bligh hiding under his bed, yet this is most likely to be propoganda spread by the Corps. Although Bligh was arrested, he was eventually exonerated.
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