Mayra Rodarte 7th Period McCulloch v Maryland Mayra Rodarte 7th Period

Only one federal Bank, the Bank of the United States Background: McCulloch v Maryland 1819 Only one federal Bank, the Bank of the United States Background: Panic of 1819 Embargo Act and War of 1812 created this panic as the first major financial crisis

PLAINTIFF: Maryland wanted to tax people who lived in Maryland but did business with banks in other states.

DEFENDANT: Andrew McCulloch sued Maryland because he stated that the Bank was an “institution incorporated under the laws of the United States”, it did not need to follow the tax made by the state.

DECISION The tax was an unconstitutional interruption by the powers held on Congress. This is because Congress has the power to incorporate a Bank. States have no power to override control or interfere with power only placed by Congress.

LASTING IMPACT The Necessary and Proper Clause was created to give more powers to Congress. Implied powers were specified. Chief Justice John Marshall said that only Congress had the power to set up federal banks. Strengthened federal government.

“The right to tax is the right to destroy “The right to tax is the right to destroy.” -Chief Justice, John Marshall