Eleanor Finch
The concept of implied powers in the US Constitution is based on the idea that the government has certain powers that are not explicitly mentioned in the document but are assumed to be necessary for its effective functioning. Alexander Hamilton, a member of the Federalist Party, first introduced this concept in defence of the constitutionality of the First Bank of the United States, arguing that the sovereign duties of a government imply the right to use the means necessary to fulfil those duties. This idea was later invoked by Chief Justice John Marshall in the 1819 Supreme Court case McCulloch v. Maryland, where he ruled in favour of the federal government's implied power to establish a national bank. The recognition of implied powers has had a significant impact on the scope of Congress's authority, with the McCulloch decision affirming the broad reach of these powers in practice.
| Characteristics | Values |
|---|---|
| Party | Federalist Party |
| Supporters | Alexander Hamilton, Chief Justice John Marshall, President George Washington |
| Beliefs | Strong national government, broad scope of Congress's implied powers |
| Examples of Implied Powers | Creation of the Internal Revenue Service (IRS), use of a military draft to raise an army, gun control laws, federal minimum wage |
| Basis | "General welfare" and "necessary and proper" clauses of the Constitution, or the "Elastic Clause" |
| First Official Recognition | 1819 U.S. Supreme Court case McCulloch v. Maryland |
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What You'll Learn
The McCulloch v. Maryland case
The case involved James W McCulloch, a cashier at the Baltimore branch of the Second Bank of the United States, who refused to pay taxes imposed by the state of Maryland. Maryland filed a suit against McCulloch to collect the taxes, arguing that the US Constitution did not explicitly grant Congress the power to establish banks. The state further argued that the Second Bank was unconstitutional.
Chief Justice John Marshall, a member of the Federalist Party and a firm believer in a strong national government, sided with McCulloch. Marshall invoked the implied powers of the government, arguing that Congress had the right to establish the bank as the Constitution grants Congress certain implied powers beyond those explicitly stated. He cited Alexander Hamilton's argument to President George Washington that the sovereign duties of a government implied the right to use means adequate to its ends. Marshall also pointed to the Necessary and Proper Clause, or Elastic Clause, which grants Congress powers that are assumed to be necessary to implement the expressed powers named in Article I.
The Supreme Court decided in favour of McCulloch, ruling that the Federal Government had the right to set up a Federal bank and that states did not have the power to tax the Federal Government. This decision effectively settled that the scope of Congress's implied powers is very broad, and it has had a significant influence on the interpretation of Federal power in the US and similar legal systems in other nations.
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The Federalist Party
Hamilton proposed an ambitious economic program that involved the assumption of state debts incurred during the American Revolution, creating a national debt and the means to pay it off. He also proposed the creation of a national bank, which was established in 1791. Hamilton's supporters, the Federalists, worked in every state to build an organized party committed to a fiscally sound and nationalistic government. The Federalist Party became popular with businessmen and New Englanders, while its main opposition, the Republicans, were mostly farmers who opposed a strong central government.
The concept of implied powers in the Constitution is not new. The framers of the Constitution knew that the expressed powers listed in Article I, Section 8 would not be adequate to address all the unforeseeable situations that Congress would need to address. Therefore, they included the Necessary and Proper Clause or Elastic Clause to grant Congress powers that are assumed to be necessary to implement the expressed powers. This clause has been the basis for many controversial laws, such as gun control and the federal minimum wage.
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The First Bank of the United States
Hamilton believed that a national bank was necessary to stabilize and improve the nation's credit and enhance the handling of the financial business of the United States government under the newly enacted Constitution. He proposed that the initial funding for the bank come from the sale of $10 million in stock, with the United States government purchasing the first $2 million in shares. This proposal faced objections, as the government did not have the required funds. Hamilton suggested that the government could borrow money from the bank and pay it back in ten equal annual installments. The remaining $8 million in stock was available to the public, both in the United States and overseas, with the requirement that one-quarter of the purchase price be paid in gold or silver.
The establishment of the First Bank of the United States was controversial and faced opposition from the beginning. Thomas Jefferson, James Madison, and Attorney General Edmund Randolph objected to the creation of the bank. In defence of the bank, Hamilton produced what became known as the doctrine of implied powers. He argued that the sovereign duties of a government implied the right to use means adequate to its ends, and that the "general welfare clause" and the "necessary and proper clause" granted elasticity to the Constitution. This concept of implied powers was later invoked by Chief Justice John Marshall in the McCulloch v. Maryland case in 1819, upholding the establishment of the Second Bank of the United States.
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The implied powers of Congress
The Framers of the Constitution understood the need to provide some flexibility in the document for representatives to govern for the common good. Thus, they granted Congress implied powers in addition to its explicit powers. The implied powers of Congress are derived from the "Necessary and Proper Clause" or the "Elastic Clause" (Article I, Section 8, Clause 18), which grants Congress the power to:
> "Make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."
This clause allows Congress to argue that new powers are necessary for the proper functioning of the country, even if they were not originally included in the Constitution. The determination of what is "necessary and proper" is subjective, and the implied powers of Congress have been a source of controversy since the early days of the US government.
Some examples of Congress's use of implied powers include the establishment of the First and Second Banks of the United States, the passing of gun control laws, the creation of a national minimum wage, and the implementation of the nation's first income tax law.
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The Necessary and Proper Clause
The clause is significant because it gives Congress implied powers in addition to its enumerated powers. These implied powers are those that can reasonably be assumed to flow from express powers, though not explicitly mentioned in the Constitution. The Necessary and Proper Clause, therefore, provides Congress with the authority to use all means "necessary and proper" to execute its enumerated powers.
The interpretation and application of the Necessary and Proper Clause have been a subject of debate and controversy throughout US history. During the debates over the ratification of the Constitution, Anti-Federalists expressed concern that the clause would grant the federal government boundless power. Federalists, including Alexander Hamilton, argued that the clause would only permit the execution of powers granted by the Constitution. Hamilton further asserted that the Necessary and Proper Clause, along with the "'general welfare' clause, gave the Constitution the elasticity sought by its framers.
The first practical example of the contention surrounding the Necessary and Proper Clause occurred in 1791 when Hamilton used it to defend the constitutionality of the First Bank of the United States. He argued that the bank was a reasonable means of carrying out powers related to taxation and borrowing funds, and that the clause applied to activities reasonably related to constitutional powers. This interpretation was reaffirmed in the landmark Supreme Court case McCulloch v. Maryland in 1819, where the Court ruled that Congress had the implied power to establish a bank to fulfil its express taxing and spending powers.
The McCulloch decision settled that the scope of Congress's implied powers is very broad, and it has had a significant impact on the power of the national government. Despite the United States being a government of limited powers, the broad interpretation of the Necessary and Proper Clause means there is very little that is beyond the government's power to regulate.
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Frequently asked questions
Implied powers are powers that, although not directly stated in the Constitution, are indirectly given based on expressed powers.
Alexander Hamilton first articulated the concept of implied powers when he defended the constitutionality of the First Bank of the United States during the administration of President George Washington.
McCulloch v. Maryland was a famous 1819 US Supreme Court case that upheld a bill passed by Congress creating the Second Bank of the United States. Chief Justice John Marshall, a member of the Federalist Party, cited Hamilton's argument for implied powers, stating that Congress had certain implied powers beyond those explicitly stated in the Constitution. This decision settled that the scope of Congress's implied powers is very broad.
