McCulloch v. Marrland (1819).
Case-Since the establishment oj the Bank oj the United States in 1791, Anti-Fed­
eralists, or Republicans, had argued that a national bank was unconstitutional since the Constitution did not specifi­
• Marbury v. Madison U80iJ~J
cally give Congress the authority to cre­
Case- William Marbury, a Federalist, had
ate such a bank. Federalist advocates received a "midnight appointment" as
oj a strong national government had justice oj the peace Jrom John Adams
used the "elastic clause" to justljiJ cre­
as he left office. The new Republican
ation oj the Bank. According to the president, Thomas Jefferson, instructed
preamble oj the Bank charter, the Bank his secretary oj state. James Madison.
would aid the government in getting not to deliver the commission. When he
emergency loans, serve as a depository did not receive his signed commission,
Jor tax Junds, and produce advantages
Marbury asked the Supreme Court to
Jor trade and industry. The Bank oj the issue a writ oj mandamus directing
United States had expired in 1811, but Madison to deliver the commission.
a second Bank oj the United States was chartered in 1816. Several states that Decision-The Supreme Court reJused to
opposed the Bank put taxes or special issue a writ oj mandamus. and. there­
restrictions on operations oj the Bank Jore. Marbury did not receive his com­
within their states. When the cashier oj mission.
the Bank oj the United States in Mary­
land reJused to pay a state tax on the Reason-The Constitution gives the Supreme
Bank. Maryland brought suit against Court both original and appellate juris­
him. Maryland won ajudgment against diction. However, the Constitution lists
the Bank. but McCulloch. the cashier. the instances in which the Supreme Court
appealed the decision to the Supreme has original, or Jirst, jurisdiction. All
Court. other issues come beJore the Supreme
Court on· appeals Jrom lower courts.
Decision-John Marshall. in writing the ma­
Although the Judiciary Act oj 1789 gave
jority decision oj the Supreme Court.
the Supreme Court the right to issue
overturned the lower court's decision
writs oj mandamus. this constituted an
and declared the Maryland tax null and
unconstitutional grant oj power since it
void.
gave the Supreme Court a new case oj
original jurisdiction. ThereJore, the Su­
Reason-The Court ruled that the Federal
preme Court declared that portion oj the
government has the authority to do what
Judiciary Act oj 1789 unconstitutional
is necessary and proper to carry out the
and announced it had no authority to
enumerated powers oj Congress, and
give Marbury a writ oj mandamus.
that included establishing the Bank oj
the United States. According to MarshalL
4
Significance-Although the Supreme Court,
"The power to tax is the power to de­
which had a Federalist majority. de­
stroy." A state cannot take any action
nied Marbury, also a Federalist, his com­
that will destroy an agency properly
mission. the Court established ajar more
established by the Federal government.
important principle. Prior to Marbury v.
ThereJore, Maryland could not tax the
Madison, the Supreme Court had been
Maryland branch oj the Bank oj the
the weakest oj the three branches oj
United States.
government. By setting a precedent Jor
judicial review, the Supreme Court es­
Significance-The decision sanctioned the
tablished its role as fmal arbiter oj the
Federal government's use oj implied
meaning oj the Constitution and its po­
powers, established the supremacy oj
sition ojequality with the other branches
the national government over states, and oj government.
paved the way Jor vast expansions oj Jederal power in the Juture.
•
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•
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84
,
Dartmouth College v. Woodward (1819)
Case-Dartmouth College had been char­
tered in 1769 as a private school to
train both missionaries and Native
Americans in New Hampshire. The school
had a self-perpetuating Board oJTrust­
ees. When the second president oj the
college alienated students. townspeople.
and some oj the trustees, Republican
members oj the Board. sought to have
the state legislature convert the school
to a state university and add a state­
appointed board oj overseers with con­
trol over instruction and the hiring oj
JacuLty members. Federalist members
oJ the Board oJTrustees argued that the
school's charter was a contract and that
the Federal ConstitutionJorbade states
Jrom impairing the obligation ojcontracts.
The Federalist trustees sued William H.
Woodward. secretary-treasurer oj the
new state-created governing board, to
recover college recorls, books, and the
school's seal. When the Republican­
dominated state court supported the
contention that the state had the right
to alter the school's charter, the Feder­
alists aslced Dartmouth graduate Daniel
Webster to appeal their case beJore the
Supreme Court.
Gibbons v. Ogden (1824)
Case-In order to encourage the develop­
mentoJ the steamboat. New York had
granted Robert Fulton a long-term mo­
nopoly oj steam navigation on the wa­
ters oj the state. Previously Congress
had required all vessels navigating
coastal and interstate waters oj the
United States to obtain Jederal coastal
licenses. In this case Gibbons sued
Ogden who. as a licensee ojFulton. had
a monopoly oj New York waterways
granted by the state oj New York.
Decision-The Supreme Court under John
Marshall ruled that the monopoly granted
Ogden by the state oj New York was
unconstitutional.
Reason-Article III oJthe Constitution grants
regulation oj interstate commerce to
Congress. Congress had exercised those
powers in the Federal Coasting Act. and
the New York act creating a monopoly
coriflicted with the Federal act and the
Constitution oJ the United States. There­
Jore, the monopoly was unconstitutional
and. thereJore, void.
Significance-The power to regulate inter­
state commerce rests with the Federal
government. The decision secures the
concept oj a common market and pre­
vents states Jrom impeding commerce.
Decision-The Supreme Court overturned
the decision oj the state court.
Reason-The charter granted to the trust­
ees by the colonial government oj New
Hampshire was a valid contract that
came within the meaning oj Article 1.
Section 10 Q[ the United States Consti­
tution. ThereJore. the state had no right
to impair the obligation oj the contract
without the consent oj both the state
and the college.
3. To conclude this lesson, discuss part C as
a class activity.
Significance-The decision upheld the sanc­
tity oj contracts and oj private property.
This decision was important in assur­
ing economic development and encour­
aging investment in new corporations.
In addition, it set a precedent Jor the
Supreme Court's overturning acts ojstate
legislatures and state courts.
85