Essay The Federal Bank Of The United States

1152 Words Aug 26th, 2016 5 Pages
The United States Congress established a federal Bank of the United States through a legislative act. The federal Bank had created a branch for operation in the state of Maryland. According to Maryland laws, any bank within Maryland without a state charter will be imposed a tax by the Maryland state government, and the branch of the Bank of the United States is one of the non-chartered banks. McCullough, a cashier for the Second Bank of the United States, was operating in Maryland and issued banknotes without paying the tax. The State of Maryland sued McCullough for not paying the tax in an argument that the Bank was unconstitutional due to the lack of specification of the power to create a bank in the Constitution . In Maryland, judgement was passed against McCullough, but was appealed to the Supreme Court of the United States.
The argued parts of the Constitution is Article IV 's National Supremacy Clause and the Necessary and Proper Clause in Article I, Section 8.

Constitutional Question: Does the state of Maryland have the right to tax a federal agency which was properly set up by the United States Congress?

The Supreme Court overturned the judgement in the Maryland court. The Supreme Court first discussed the constitutionality of the act of creating a bank due to federal law. The Supreme Court agreed it was constitutional to create a federal bank due to the implied power from the Constitution for the Congress to carry out government duties. Since the federal Bank is…

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