The Marshall Court

The Marshall Court McCulloch v. Maryland The 2nd Bank of the United States was incorporated in 1816 (By President Monroe). In 1817, the bank opened a branch in Maryland. The state of Maryland didn't want the bank; they passed a tax on all banknotes from out-of-state banks.

The Marshall Court James McCulloch, president of the Maryland branch, refused to pay the tax and was sued. Maryland argued that the Constitution did not permit the federal government to create banks. The court agreed, and the case was appealed to the Supreme Court. Daniel Webster represented McCulloch in the Supreme Court case.

The Marshall Court The Supreme Court sided with the bank. They argued that: -The bank was constitutional; the 1st national bank was proof. -The states are not sovereign; it was the people who ratified the Constitution. -The Constitution gives the government the power to do what is “necessary and proper” to govern the country. -The state may not tax the bank, “the power to tax is the power to destroy.”

The Marshall Court Dartmouth College v. Woodward Dartmouth college was chartered in 1769 by King George III. In 1816, the college's board fired its president, and the New Hampshire state legislature tried to force it to alter its charter, making it a public school. The college sued the state, represented by William Woodward, the head of the state- appointed new board. Daniel Webster, an alumni, represented the college.

The Marshall Court The court sided with the college, ruling that the original charter was valid – the sanctity of the contract was essential to the functioning of the republic. The states have no power to undo contracts.

The Marshall Court Gibbons v. Ogden In 1808, the state of New York gave to Robert Livingston and Robert Fulton exclusive rights to operate steam ferries within the state's waters. In 1815, they sold a license to Aaron Ogden of New Jersey to operate a ferry between the two states. In 1818, Ogden's former partner, Thomas Gibbons, bought a license from the federal government and began operating his own ferry.

The Marshall Court Ogden sued asking the state of New York to stop Gibbons from operating his ferry, because he had purchased exclusive rights from New York. Gibbons's lawyer, Daniel Webster, argued that the federal government had sole discretion over interstate business; otherwise, it would result in confusing, contradictory local regulations. Ogden won, and Gibbons appealed to the Supreme Court.

The Marshall Court The Supreme Court ruled in favor of Gibbons – article 1, section 8, clause 3 of the Constitution gives Congress authority to regulate trade between the states.