In early American history, not many Supreme Court cases had a larger impact than the impact felt after the ruling in McCulloch v. Maryland 17 US 316 (1819). The impact of this case is still felt today and a reverse judgement would have changed the landscape of this country’s financial system. McCulloch v. Maryland was argued in late February and early March of 1819, and decided on March 6, 1819, three days after the final arguments (Oyez). Although this case is not taught as often as Marbury v. Madison, it is still one of the more important judgements in early United States history and helped expand the power of the federal government through the supremacy clause and the commerce clause. As treasury secretary, Alexander Hamilton believed
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For the war of 1812, a second bank of the United States would be formed in 1816 and be given the same responsibilities as the first bank. The bank would struggle with poor management and deposit ratios, and would eventually face arguments against the constitutionality of the bank (Second Bank). The second bank was given the ability to regulate currency, and was very cautious with its fiscal policy (Pearson). On February 11, 1818, the legislature of Maryland passed “an act to impose a tax on all banks or branches thereof, in the State of Maryland not chartered by the legislature”. This act would allow Maryland to collect money on every dollar that was distributed, or a flat fee of $15,000. Offenders of the law would also be forced to pay fines for not cooperating (Constitution …show more content…
He would sue the state, appeal to the Maryland Court of Appeals, and eventually to the Supreme Court. Many Constitutional issues were in play for this case, including the commerce clause, supremacy clause, necessary and proper clause, and the coining money clause. The argument on behalf of McCulloch was that the Bank was a necessary and proper creation of Congress, and the commerce power allowed for the expansion of the federal government to this point. The State of Maryland’s argument stated that as a sovereign, Maryland was allowed to regulate and tax institutions within its borders. Since the Federal government created statutes to regulate state banks, the state should not be prevented from regulating the federal banks
For the war of 1812, a second bank of the United States would be formed in 1816 and be given the same responsibilities as the first bank. The bank would struggle with poor management and deposit ratios, and would eventually face arguments against the constitutionality of the bank (Second Bank). The second bank was given the ability to regulate currency, and was very cautious with its fiscal policy (Pearson). On February 11, 1818, the legislature of Maryland passed “an act to impose a tax on all banks or branches thereof, in the State of Maryland not chartered by the legislature”. This act would allow Maryland to collect money on every dollar that was distributed, or a flat fee of $15,000. Offenders of the law would also be forced to pay fines for not cooperating (Constitution …show more content…
He would sue the state, appeal to the Maryland Court of Appeals, and eventually to the Supreme Court. Many Constitutional issues were in play for this case, including the commerce clause, supremacy clause, necessary and proper clause, and the coining money clause. The argument on behalf of McCulloch was that the Bank was a necessary and proper creation of Congress, and the commerce power allowed for the expansion of the federal government to this point. The State of Maryland’s argument stated that as a sovereign, Maryland was allowed to regulate and tax institutions within its borders. Since the Federal government created statutes to regulate state banks, the state should not be prevented from regulating the federal banks