*McCulloch+v.+Maryland

= = = //__McCulloch vs. Maryland__// = This case was argued on Monday, February 22, 1819 and decided on Saturday, March 6, 1819. 1/1

In 1816, Congress started The Second Bank of the United States. In 1818, the state of Maryland passed a law that let them impose taxes on the bank. A cashier of the Baltimore branch of the bank, James W. McCulloch, refused to pay the tax. The state of Maryland had attempted to disrupt operation of the United Stated bank by imposing a tax on all paper money of banks not approved in Maryland. This was seen as a specific attack on the U.S. system. HOW DID IT BECOME A COURT CASE??? EXPLAIN 4/5  This case posed two questions. The first question directly involves the Elastic Clause in Article I, which states that Congress should do all things "necessary and proper" to carrying out their specifically listed powers in the Constitution. This is a big issue in the debate over lose v. strict interpretation of the constitution. Did Congress have the power to establish the bank? The second question is based on the Supremacy Clause in Article VI of the constitution, which says that the Constitution and the federal government hold the "supreme law of the land", and are to be followed by all state governments. Did the Maryland law unconstitutionally interfere with the authority of congressional powers? GOOD 5/5 

In a unanimous decision, the court decided that Congress did have the power to form the bank and that Maryland could not tax an institution of the national government used in the execution of constitutional powers. Chief Justice Marshal noted that Congress has unenumerated powers not explicitly listed in the Constitution, and that while states have the power to tax, the Constitution and laws made to represent it are supreme. They control the laws of the relevant states, and cannot be controlled by them. 5/5 

What was the significance? This was the first time a state government had outright tested its power over the national government. Going forward, this case set the precedent as to how extremely the government was going to enforce the Supremacy Clause. It also guaranteed that the national government could continue to run a national banking system and would eventually let them start the Federal Reserve. GOOD 5/5

LABEL THE PICTURE 1.5/2