McCulloch V. Maryland
The Basics…
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In 1816, Congress established the
Second Bank of the United States.
The Second Bank of the United
states (BUS) had the authority to
issue notes that circulated as legal
tender alongside the states’ bank
notes.
The bank agreed to loan the
federal government money in
exchange for an exemption from
paying taxes.
However in 1818, the state of
Maryland passed legislation to
impose taxes on any bank not
chartered in the state.
James McCulloch refused to pay
the taxes, and as a result Maryland
sued him.
Who Is James McCulloch?
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McCulloch was born on February 5, 1789 and
died on June 17, 1861 at the age of 72.
He worked as a cashier at the Baltimore
branch of the Second Bank of the United
States.
McCulloch was also a politician in maryland;
he served as Speaker of the Maryland House of
Delegates.
He refused to pay the taxes that were imposed
upon the bank by Maryland, therefore
Maryland sued him.
He was speculated of giving himself loans
from the bank unlawfully.
How Would You Decide?
Would you side with McCulloch and grant congress its
implied powers outlined by the necessary and proper
clause to?
Or
Would you side with Maryland and give states the
power to tax government buildings?
McCulloch’s Argument…
● The tax imposed by Maryland was
unconstitutional because the Second Bank
of America was chartered by Congress.
● It was unjust to only tax banks not
chartered by the state.
Maryland’s Argument…
● Maryland blamed the Second Bank of
America for causing their economic
troubles.
● It was unconstitutional for congress to
charter a national bank.
Maryland Court System…
● The state ruled in favor of Maryland and
upheld the taxes imposed on the bank.
● Declared that McCulloch was required by
law to pay the taxes.
Rights Being argued…
● Did congress reserve the
power to establish the
bank?
● Did Maryland’s tax
unconstitutionally
interfere with
congressional powers?
Supreme Court’s Decision…
● The case was argued February 22-March 3,
1819 and was decided on March 6, 1819.
● Court decided unanimously (5-0).
● First, court ruled that Congress has implied
powers under the Necessary and Proper
Clause of Article I of the constitution to
charter the Second Bank of America.
● Second, court ruled that Maryland did not
have the power to tax the Bank because of
the Supremacy Clause of Article VI of the
Constitution.
● In short, the constitution is the supreme law
of the land.
Significance…
● This case created the precedent for congress “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.”
● Other Necessary and Proper Clause cases:
○ Wickard v. Filburn
○ National Federation of Independent Business v.
Sebelius
Recap Quiz…
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5.
When did this case take place?
What was McCulloch’s argument?
What was Maryland’s argument?
How did the justices decide?
What clause did this case use in it’s ruling?
Recap Quiz…
1. When did this case take place?
● 1819
2. What was McCulloch’s argument?
● It is unconstitutional for Maryland to tax the Second
Bank of America
3. What was Maryland’s argument?
● It is unconstitutional for congress to charter the bank
4. How did the justices decide?
● Unanimously in favor of McCulloch
5. What clause did this case use in it’s ruling?
● Necessary and Proper Clause
Works Cited
http://www.pbs.org/wnet/supremecourt/antebellum/landmark_mccullo
ch.html
https://www.oyez.org/cases/1789-1850/17us316
http://www.history.com/topics/mcculloch-v-maryland
https://www.ourdocuments.gov/doc.php?flash=true&doc=21