In 1816 Congress established the Second National Bank, due to the financial problem of the War of 1812. Most states did not accept the chartering of a National Bank. Therefore many states passed laws on either banning the bank completely or taxing it. Maryland passed a law requiring a stamp tax. The stamp tax was a tax on notes issued by an unchartered bank by the said state. Since the State of Maryland would not charter the Bank, a stamp tax was held to the notes given out. James W. McCulloch was an officer …show more content…
Luther also argued the Tenth Amendment….”powers not delegated by the United States nor prohibited to the states, are reserved to the states respectively, or to the people.” Therefore a bank can only be created by the states or the people they represent. So the question was were did Congress get the authority to set up the Bank? Maryland concluded that the Constitution had nowhere stated the limit states could tax. Thus stating that the states can tax any person or property in its