terrorism (n.) Look up terrorism at Dictionary.com
1795, in specific sense of "government intimidation during the Reign of Terror in France" (March 1793-July 1794), from French terrorisme, from Latin terror (see terror).
If the basis of a popular government in peacetime is virtue, its basis in a time of revolution is virtue and terror -- virtue, without which terror would be barbaric; and terror, without which virtue would be impotent. [Robespierre, speech in French National Convention, 1794]
General sense of "systematic use of terror as a policy" is first recorded in English 1798 (in reference to the Irish Rebellion of that year). At one time, a word for a certain kind of mass-destruction terrorism was dynamitism (1883); and during World War I frightfulness (translating German Schrecklichkeit) was used in Britain for "deliberate policy of terrorizing enemy non-combatants."