Drinking song going around America (8)
I believe the answer is:
carousal
'drinking' is the definition.
(a drunken feast)
'song going around america' is the wordplay.
'song' becomes 'carol' (carol is a kind of song**).
'going around' indicates putting letters inside.
'america' becomes 'usa' ('U.S.A.' can be a synonym of 'america').
'carol' placed around 'usa' is 'CAROUSAL'.
(Other definitions for carousal that I've seen before include "Bacchanal" , "Revels" , "revelry" , "Drunken party" , "Merry drinking spree" .)