McCulloch v. Maryland

Background

• State Banks began to fail in 1818 Deppresion; Blamed Bank of the U.S.
• Maryland imposes hefty tax on all banks not chartered in the State
• James McCulloch (Cashier for Baltimore branch of U.S Bank) refused to pay tax
• Sent to Chief Justice Marshall and Supreme Court for writ of error

Issues

• Does Congress have the authority to create a Bank under the Constitution?
• Does the Maryland Law interfere with Congress’ powers?

Decision

• Mar 5,1819 The Supreme Court ruled unanimously that Congress had implied powers within the Constitution and could indeed charter the Second bank of the United States
• Maryland tax was unconstitutional.

Reasoning

• Necessary and Proper clause of Article I, Section 8, justified the chartering of the second bank of the U.S
• Supremacy clause - Federal Laws override State Laws

Impact

• Defined the National Power of the Federal Government
• Congress has Implied powers to use the Constitution as they see "Necessary and proper

Opinion

• Creates opportunities to Benefit U.S.
• Can be Abused=Harmful to citizens
• Lincoln bent Constitution during Presidency

Sources

• http://www.pbs.org/wnet/supremecourt/antebellum/landmark_mcculloch.html
• http://www.casebriefs.com/blog/law/constitutional-law/constitutional-law-ke...