
McCulloch v. Maryland (1819) is a landmark U.S. Supreme Court decision that defined the scope of the U.S. Congress's legislative power and its relationship with the powers of American state legislatures. The case addressed the issue of federal power and commerce, specifically the power of Congress to charter a bank and the division of powers between state and federal governments. The court ruled in favor of the federal government, concluding that the Necessary and Proper Clause of the U.S. Constitution grants Congress implied powers necessary for carrying out its enumerated functions, including the establishment of a national bank. This case set a precedent for the relationship between federal and state authorities, with the ruling that states cannot interfere with the federal government when it exercises its implied powers.
| Characteristics | Values |
|---|---|
| Landmark Supreme Court case | McCulloch v. Maryland |
| Date | 1819 |
| Issue | Federal power and commerce |
| Decision | The federal government has the right and power to set up a federal bank and states do not have the power to tax the federal government |
| Implied power | The "Necessary and Proper" Clause of the U.S. Constitution gives the U.S. federal government certain implied powers necessary and proper for the exercise of the powers enumerated explicitly in the Constitution |
| Federal government | The American federal government is supreme over the states, and so states' ability to interfere with the federal government is restricted |
| Power to tax | "The power to tax involves the power to destroy" |
| Constitutionality | The Constitution does not limit Congress to doing only those things specifically listed in Article I |
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What You'll Learn

The 'Necessary and Proper' Clause
The McCulloch v. Maryland case of 1819 is considered a landmark US Supreme Court decision that defined the scope of the US Congress's legislative power and its relationship with the powers of American state legislatures. The case involved the legality of the national bank and a tax imposed on it by the state of Maryland.
The "Necessary and Proper Clause", also known as the "elastic clause", was a constitutional principle central to the case of McCulloch v. Maryland. This clause grants Congress the authority to "make all laws which shall be necessary and proper for carrying into execution" the powers explicitly enumerated in the US Constitution. In other words, it provides Congress with the flexibility to enact laws that are necessary and appropriate for executing its constitutionally mandated duties.
In the context of McCulloch v. Maryland, the Necessary and Proper Clause was invoked to justify the establishment of a national bank. The US Congress created the Second Bank of the United States in 1816, and a year later, it opened a branch in Baltimore, Maryland. The state of Maryland, along with many other states, opposed the presence of the National Bank within its borders, arguing that the Constitution did not explicitly authorise the federal government to charter a bank. Maryland contended that the absence of specific textual commitment in the Constitution rendered the creation of the bank unconstitutional.
However, the Supreme Court, led by Chief Justice John Marshall, ruled in favour of the federal government. Marshall's interpretation of the Necessary and Proper Clause played a pivotal role in the Court's decision. He argued that the clause implied that Congress had the power to create a national bank as it was "necessary and proper" for carrying out its enumerated powers, such as the power to lay and collect taxes, borrow money, and regulate commerce. Marshall further asserted that the federal government was supreme within its sphere of action and that its laws, when made in pursuance of the Constitution, form the supreme law of the land.
The McCulloch v. Maryland case set a significant precedent in affirming the supremacy of the federal government over state governments and restricting the ability of states to interfere with its operations. The ruling established that states could not use taxation or any other means to impede or control the constitutional laws enacted by Congress. This decision has had a lasting impact on the interpretation of federal power and the division of powers between the federal government and the states.
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Federal power over state governments
McCulloch v. Maryland (1819) is a landmark US Supreme Court case that defined the scope of the US Congress's legislative power and its relation to the powers of American state legislatures. The case addressed the issue of federal power and commerce and set a precedent regarding the expansion of federal power over state governments.
The dispute in McCulloch v. Maryland involved the legality of the national bank and a tax imposed on it by the state of Maryland. The state of Maryland argued that it had the power to tax any business within its borders and that the Constitution did not provide explicit authorisation for the federal government to create a bank, rendering its establishment unconstitutional. James William McCulloch, a cashier at the Baltimore branch of the Second Bank of the United States, refused to pay the tax imposed by Maryland.
The Supreme Court, in its ruling, established two key principles. Firstly, it affirmed that the "Necessary and Proper" Clause of the US Constitution grants the federal government certain implied powers necessary and proper for executing the powers explicitly enumerated in the Constitution. This decision was based on the "elastic clause," which authorises Congress to "make all laws which shall be necessary and proper for carrying into execution" the functions of the federal government.
Secondly, the ruling established the supremacy of the American federal government over the states, thereby restricting the states' ability to interfere with the federal government. The Court held that while the states retain acknowledged powers, they cannot use them to impede the operations of the federal government or its constitutional laws. This decision reinforced the principle that the federal government has the ultimate authority to establish a national bank and that states do not have the power to tax or destroy it.
The McCulloch v. Maryland case set an important precedent for interpreting the relationship between federal and state powers. It affirmed the federal government's implied powers and established its supremacy in areas where it has been granted explicit authority by the Constitution, such as the power to establish a national bank and regulate commerce. This decision has been influential in shaping the balance of power between the federal and state governments in the United States.
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Congress's implied powers
The landmark case McCulloch v. Maryland (1819) addressed the issue of federal power and commerce, specifically concerning the power of Congress to charter a bank and the broader issue of the division of powers between state and federal governments. The case established Congress's implied powers and set a precedent for the relationship between federal and state authorities.
The case centred around the legality of the national bank and a tax imposed on it by the state of Maryland. Maryland argued that the federal government did not have the constitutional authority to establish a bank and that as a sovereign state, it had the power to tax any business within its borders. However, the Supreme Court, led by Chief Justice John Marshall, ruled in favour of the federal government, concluding that Congress had the power to create a national bank and that states could not tax it. Marshall's ruling established that the federal government is supreme over the states, and therefore, states cannot interfere with the federal government's exercise of its implied powers.
The McCulloch v. Maryland decision had a significant impact on defining the scope of Congress's legislative power and its relationship with state legislatures. It set a precedent for the interpretation of the Constitution and the division of powers between different levels of government. The case also highlighted the importance of implied powers in the Constitution, recognising that Congress has the flexibility to take actions necessary for executing its express constitutional powers.
The ruling in McCulloch v. Maryland continues to shape the understanding of federal power and has been cited in subsequent cases dealing with similar issues. It affirmed the principle that the federal government holds sovereign power over states and that the Constitution grants Congress implied powers necessary for governing effectively.
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The Constitution's silence on banks
Maryland argued that the Constitution did not explicitly authorise the federal government to create a bank, and therefore, any such creation would be unconstitutional. This argument highlighted what was seen as a gap in the Constitution's text, which did not directly address the federal government's power to establish banks. The state of Maryland contended that in the absence of specific constitutional authorisation, the creation of a bank by the federal government would be beyond its legitimate powers.
The Supreme Court, however, ruled in favour of the federal government, concluding that the federal government had the right and power to establish a national bank. Chief Justice John Marshall supported this decision with several arguments. Firstly, he asserted that historical practice established Congress's power to create a bank. Secondly, he interpreted the "'Necessary and Proper' Clause" of the Constitution as granting Congress the authority to carry out actions necessary and proper for executing its enumerated powers. This included the power to establish a national bank, as it was deemed "'necessary and proper'" for the federal government to do so in order to effectively carry out its powers to tax, borrow money, and regulate commerce.
The McCulloch v. Maryland case highlighted the implied powers of the federal government and set a significant precedent regarding the division of powers between state and federal governments. It affirmed that the federal government is supreme within its sphere of action and that states cannot interfere with its legitimate operations. This decision had a lasting impact on the interpretation of federal power and the balance of power between the states and the federal government in the United States.
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The Tenth Amendment
McCulloch v. Maryland (1819) is a landmark US Supreme Court decision that addressed the issue of federal power and commerce. The case involved the power of Congress to charter a bank, specifically the Second National Bank, and the broader issue of the division of powers between state and federal governments. The state of Maryland had imposed a tax on the bank, which its cashier, James McCulloch, refused to pay. The Supreme Court, led by Chief Justice John Marshall, ruled in favor of the federal government, concluding that the federal government had the right and power to set up a federal bank and that states did not have the power to tax the federal government.
This case is particularly significant when discussing the Tenth Amendment, which states, "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." While the Tenth Amendment is not explicitly mentioned in the McCulloch v. Maryland decision, the case's outcome and implications have important ramifications for the interpretation of the amendment.
Chief Justice Marshall's ruling in McCulloch v. Maryland established a precedent that expanded federal power and affirmed the supremacy of the federal government over state governments. Marshall's interpretation of the Constitution and his reasoning for the decision provide insights into how the Tenth Amendment, and the balance of power between the federal and state governments, was viewed at the time.
In his ruling, Marshall noted the difference between the Constitution and the Articles of Confederation, the United States' first governing document, which the Constitution replaced. The Articles of Confederation stated that states retained all powers not "expressly" granted to the federal government. Marshall highlighted that the Tenth Amendment, in contrast, did not include the word "expressly," indicating that the Constitution did not intend to limit Congress to only the powers specifically listed. This interpretation set a precedent for a broader reading of federal power and a more flexible interpretation of the Tenth Amendment.
The McCulloch v. Maryland decision also affirmed the concept of implied powers of the federal government. The Supreme Court ruled that the "Necessary and Proper" Clause of the Constitution grants the federal government certain implied powers necessary for carrying out its express constitutional powers. This interpretation further expanded the scope of federal power and influenced how the Tenth Amendment was understood and applied.
In conclusion, while not directly referencing the Tenth Amendment, McCulloch v. Maryland significantly shaped the interpretation and application of the amendment. The case's outcome and Chief Justice Marshall's reasoning contributed to a broader construction of federal power and a more flexible understanding of the Tenth Amendment's limitations on federal authority. The decision continues to be cited as a pivotal moment in the evolution of federal power and the relationship between the federal government and the states.
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Frequently asked questions
The "Necessary and Proper" Clause of the U.S. Constitution gives the U.S. federal government certain implied powers necessary and proper for the exercise of the powers enumerated explicitly in the Constitution.
The Supreme Court ruled in favor of the federal government, concluding that the federal government was supreme over the states, and so states' ability to interfere with the federal government is restricted.
The broader issue was the division of powers between state and federal government, specifically whether the Federal Government held sovereign power over states.
McCulloch v. Maryland was a landmark decision that set a precedent for the relationship between the federal government and state governments, expanding federal power. It was also cited in the first substantial constitutional case presented before the High Court of Australia in D'Emden v. Pedder (1904).

























