Malcolm Rivera
The constitutionality of the national bank by implied powers was upheld in the landmark 1819 Supreme Court case McCulloch v. Maryland. The case involved the power of Congress to charter a bank, which sparked broader issues of federal power and the division of powers between state and federal governments. The Court's ruling established two enduring constitutional principles: the implied powers doctrine and the Necessary and Proper Clause, which grants Congress implied powers to implement express powers. Chief Justice John Marshall's decision, which held that Maryland could not tax the national bank, was based on four main arguments, including historical practice and the sovereignty of the people over states. This case is considered one of the most important in defining the scope of Congress's powers and the relationship between federal and state governments.
| Characteristics | Values |
|---|---|
| Year | 1819 |
| Case name | McCulloch v. Maryland |
| Court | U.S. Supreme Court |
| Issue | Federal power and commerce |
| Holding | Congress has implied powers to establish a national bank |
| Facts | Maryland imposed a tax on the Second National Bank, which cashier James McCulloch refused to pay |
| Prior history | Maryland Court of Appeals upheld the tax |
| Citations | McCulloch v. Maryland, 3/6/1819; Engrossed Minutes, 2/1790 - 6/7/1954; Records of the Supreme Court of the United States, Record Group 267 |
| Judges | Chief Justice John Marshall |
| Opinion | Marshall found that the power to tax involves the power to destroy, and that Congress has implied powers under the "necessary and proper" clause |
| Significance | Established two enduring constitutional principles: implied powers and federal supremacy over states |
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What You'll Learn
The McCulloch v. Maryland case
McCulloch v. Maryland (1819) is considered one of the most important Supreme Court cases on federal power. It addressed the issue of federal power and commerce and defined the scope of the U.S. Congress's legislative power and its relationship with the powers of American state legislatures.
The case involved James William 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 on banks not chartered by the state. Maryland filed a suit against McCulloch to collect the taxes, arguing that as a sovereign state, it had the power to tax any business within its borders. McCulloch's attorneys, on the other hand, argued that the establishment of a national bank was "necessary and proper" for Congress to carry out its enumerated powers.
The Supreme Court, in a unanimous decision, ruled in favour of McCulloch, stating that the chartering of a bank was an implied power of the Constitution under the "elastic clause" or the "Necessary and Proper Clause". This clause grants Congress the authority to “make all laws which shall be necessary and proper for carrying into execution” the functions of the Federal Government. The Court also determined that the federal government was supreme over the states, and therefore, states could not interfere with federal institutions or laws. This set a precedent for the division of powers between state and federal governments.
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The implied powers doctrine
In the United States, the implied powers doctrine is derived from the "Necessary and Proper" Clause of Article I, Section 8 of the Constitution, also known as the "Elastic Clause". This clause 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."
> "Although, among the enumerated powers of government, we do not find the word 'bank', we find the great powers to lay and collect taxes; to borrow money; to regulate commerce...all means which are appropriate...are constitutional."
The McCulloch v. Maryland case established two enduring constitutional principles. Firstly, it affirmed the implied powers doctrine, granting Congress powers not expressly listed in the Constitution but necessary and proper to execute its enumerated powers. Secondly, it established that state governments could not tax federal institutions, as "the power to tax involves the power to destroy".
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The Necessary and Proper Clause
> "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."
The clause has been interpreted as giving Congress implied powers in addition to its enumerated powers. This interpretation was established in the landmark Supreme Court case McCulloch v. Maryland in 1819, which concerned the constitutionality of a national bank. The state of Maryland had attempted to impede the Second Bank of the United States by imposing a tax on out-of-state banks, which the Second Bank was the only one to be subjected to. The Court ruled in favour of McCulloch, with Chief Justice John Marshall stating that while the Constitution did not explicitly permit the creation of a federal bank, it conferred upon Congress an implied power to do so under the Necessary and Proper Clause. This allowed Congress to realise its express taxing and spending powers.
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The expansion of federal power
The case reached the Supreme Court, which ruled in favour of McCulloch, stating that Congress has implied powers derived from those listed in Article I, Section 8 of the Constitution. Chief Justice John Marshall wrote that the power to tax involves the "power to destroy", and that Maryland's attempt to tax the national bank was unconstitutional. This decision established the principle of the implied powers doctrine, which allowed for a broad interpretation of the "necessary and proper" clause of the Constitution. This meant that Congress could pass legislation for a national bank to carry out its explicitly stated powers, such as coining and regulating the value of money, borrowing money, and levying taxes.
The McCulloch v. Maryland case set a precedent for the expansion of federal power and the interpretation of federalism. It established the "supremacy" of the federal government, asserting that state governments could not interfere with federal institutions. This case attracted national attention as it addressed the extent and limits of states' rights and national government power, which had been a controversial issue since the creation of the Constitution.
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The division of powers between state and federal government
The United States government is structured according to a system known as federalism, which divides powers between the national government and the states. This system is intended to strike a balance between creating a powerful national government and protecting the liberties of the American people. Federalism allows states to act as "laboratories of democracy", testing ideas independently.
Federalism is not explicitly mentioned in the US Constitution, but it is a key principle of the document. The Constitution divides power in two ways: first, between the three branches of the national government (the legislative, executive, and judicial branches), and second, between the national government and the states. This process of dividing power between different branches of government is called the separation of powers.
The separation of powers is intended to prevent abuses of power and create a government that serves the common good. This is achieved through checks and balances, which involve connections and overlap between the jobs of the different branches of government. For example, while certain powers are shared between the federal and state governments, federal laws take priority over state laws when the two come into conflict. This is due to the "Supremacy Clause" in Article VI of the Constitution, which names the US Constitution and federal laws written under its authority as "the supreme law of the land".
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Frequently asked questions
The Supreme Court ruled in favour of McCulloch, deciding that the chartering of a bank was an implied power of the Constitution, under the "elastic clause," which granted Congress the authority to "make all laws which shall be necessary and proper".
The case involved the power of Congress to charter a bank, which sparked the broader issue of the division of powers between state and the Federal Government.
Maryland set a precedent by requiring taxes on all banks not chartered by the state.
Maryland argued that without specific constitutional authorization for the federal government to create a bank, any such creation would be rendered unconstitutional.
