McCulloch v. Maryland (1819) Troy Balog. Background The Second Bank of the United States was established by Congress from an act in 1816. The state of.

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Presentation transcript:

McCulloch v. Maryland (1819) Troy Balog

Background The Second Bank of the United States was established by Congress from an act in The state of Maryland enacted legislation that required bank notes to be on stamped paper from the state (in simple terms, taxing) on all banks not chartered by the state. McCulloch was a cashier who failed to comply with administering bank notes on stamped paper, and Maryland sued him for his noncompliance. McCulloch argued the constitutionality of the act.

Issues Does Congress have the power to establish a national bank although it is not an enumerated power listed in the Constitution? Does the state of Maryland (or any individual state) have the authority to tax a national institution?

Ruling The United States government does have the authority to establish a Bank of the United States under the Necessary and Proper Clause. (Article 1, Section 8) The state of Maryland (nor any state) may not tax a federal institution. *UNANIMOUS DECISION

Significance Grants wider range of power of the federal government due to the Necessary and Proper Clause. “The States have no power, by taxation or otherwise, to impede or in any manner control any of the constitutional means employed by the U.S. government to execute its powers under the Constitution.”

Bibliography /1819/1819_ /1819/1819_0 maryland.html maryland.html =old&doc=21 =old&doc=21