SUPREME COURT
OBJECTIVE
McCulloch v. Maryland
Students will explain the reasoning behind the
Court’s decision in McCulloch v. Maryland, and
why this case is important today.
(1819)
FOCUS & MOTIVATE
THE ISSUES Balance of power between the federal and state
governments
Have students review Article 6 of the
Constitution on page 264 and identify the
section that relates to the authority of the U.S.
Constitution over state constitutions and laws.
Based on this section, have students discuss
who has more power, the U.S. Congress or
individual states?
ORIGINS OF THE CASE The second Bank of the United States (BUS) was
established by an act of Congress in 1816. It set up branches nationwide.
But many states objected to the bank’s policies and wanted to limit its operations. In fact, Maryland set a tax on the currency issued by the Baltimore
branch. The bank could avoid the tax by paying an annual fee of $15,000.
However, James McCulloch, the branch cashier, refused to pay either the tax
or the fee. The state sued McCulloch, and the Maryland courts ordered him
to pay. McCulloch appealed the case to the Supreme Court.
THE RULING The Court ruled that Congress had the power to establish a
national bank and that the Maryland tax on that bank was unconstitutional.
The Legal Arguments
U.S. CONSTITUTION/LEGISLATION
MORE ABOUT . . .
The Length of Supreme Court Hearings
The Supreme Court currently has a heavy caseload.
Its docket may have up to 7,000 cases per term.
When the Court does hear a case, it usually allows
no more than an hour to hear arguments, with the
time split between the two sides. When the
McCulloch case was heard, however, there were
fewer cases for the Court to handle, and there was
more time to hear them. In McCulloch, Daniel
Webster and William Pinckney argued for the
national banks. Luther Martin, Maryland’s attorney general, argued on the behalf of his state.
Together, the two sides argued for nine days.
Article 1, Section 8 (1789)
“The Congress shall have the
power to . . . make all laws
which shall be necessary and
proper for carrying into execution the [specific powers given
to Congress].”
Article 6, Section 2 (1789)
“This Constitution, and the laws
of the United States . . . shall be
the supreme law of the land; . . .
anything in the Constitution or
laws of any state to the contrary
notwithstanding.”
RELATED CASES
Fletcher v. Peck (1810)
Noting that the Constitution
was the supreme law of the
land, the Supreme Court ruled
a state law unconstitutional.
Gibbons v. Ogden (1824)
The Court ruled that the federal
Congress—not the states—had
the power to regulate interstate
commerce.
The Court first addressed Maryland’s argument that the act establishing the BUS was unconstitutional. Chief Justice John Marshall wrote
that the Constitution listed the specific powers of Congress. These
included collecting taxes, borrowing money, and regulating commerce. In addition, the Elastic Clause gave Congress the authority to
make all “necessary and proper” laws needed to exercise those powers. Establishing a bank, he concluded, was necessary for Congress to
carry out its powers. The BUS, then, was constitutional.
Next, Marshall addressed whether Maryland had the power to tax
the BUS. Marshall acknowledged that the states had the power of taxation. But he said:
[T]he constitution and the laws made in pursuance thereof are supreme
. . . they control the constitution and laws of the respective states, and
cannot be controlled by them.
So, to give a state the power to tax a federal agency created under
the Constitution would turn the Supremacy Clause, Article 6, Section
2, on its head. Further, Marshall observed, “the power to tax involves
the power to destroy.” If a state could tax one federal agency, it
might tax others. This eventually “would defeat all the ends of government.” He added that the framers of the Constitution certainly did
not intend to make the national government subject to the states:
[T]he States have no power, by taxation or otherwise, to retard, impede,
burden, or in any manner control, the operations of the constitutional
laws enacted by Congress to carry [out its] powers.
The Maryland tax, therefore, was unconstitutional.
902
ACTIVITY OPTIONS
INTERDISCIPLINARY LINK: ART
McCULLOCH EDITORIAL CARTOON
Class Time 25 minutes
Supplies Needed
Task Creating an editorial cartoon
based on the McCulloch case
• Drawing and writing materials
Purpose To understand and take a
position on the major issue of the
case
902 SUPREME COURT
Activity Have students work in groups to create political cartoons based
on the McCulloch case. In developing their cartoons, students should focus
on the central issue of the case and draw their cartoons to reflect their
understanding of the causes and consequences of the case. They should
consider whether the Court’s decision was a good one or not. If they
believe the Court made the wrong decision, they should think about how
they could visually show the negative consequences of that decision. If
they think the Court made the right decision, they should show the negative consequences that would result if the Court had found for Maryland.
Why Does It Matter Now?
At the time of the McCulloch case, there was considerable debate over what powers Congress held.
Some people took a very limited view. They suggested that Congress’s powers should be restricted
to those named in the Constitution. Others pointed out that the Elastic Clause implied that
Congress had much broader powers.
The McCulloch opinion followed this second
view. Marshall wrote:
Since Marshall’s time, the United States has undergone many changes. Over the course of the 19th
and 20th centuries, the country has grown dramatically. The population has increased and
moved. In Marshall’s day, the United States was
predominantly rural. Today, most people live in
urban areas, where economic and leisure activities
abound.
The economy of the United States, too, has
changed. The country has moved from an agricultural economy to one based on industry and, later,
service and information.
During this time, the federal government has
stretched its powers to meet the needs of the
ever-changing American society. Programs like
Franklin Roosevelt’s New Deal and Lyndon
Johnson’s Great Society came about through this
expanding of powers. Marshall’s broad reading of
the Elastic Clause in the McCulloch opinion, in
large part, laid the groundwork for this growth in
the size and power of the federal government.
Let the end be [lawful], let it be within the scope of
the Constitution, and all means which are appropriate, which are plainly adapted to that end, which
are not prohibited, but consist with the letter and
spirit of the Constitution, are constitutional.
In other words, Congress could exercise the powers it considered appropriate to achieve its lawful
goals.
Marshall’s broad view of congressional power
strengthened the federal government. And this
stronger government reflected and encouraged
the growing nationalist spirit in the early 1800s.
H ISTORIC D ECISIONS OF THE SUPREME COURT
Why Did It Matter Then?
McCULLOCH V. MARYLAND
INSTRUCT
• In whose interests did James McCulloch act
and why?
• How did Maryland’s taxation of the BUS
conflict with the Supremacy Clause?
• How did the McCulloch ruling reflect the
growing nationalist spirit of the times?
• Why would the Elastic Clause be important as
the nation grew and changed?
MAKING PERSONAL CONNECTIONS
Ask students to put themselves in the position
of James McCulloch. What thoughts do you
think he had when he was informed he must
pay a tax for the bank? If you were asked to
take an action that you feel goes against the
rules, how would you handle the situation?
The Bank of the United States
had branches throughout the
country, including this one in
Philadelphia.
CONNECT TO HISTORY
CONNECT TO TODAY
1. Forming and Supporting Opinions Chief Justice
John Marshall considered the McCulloch decision the
most important that he made. Why do you think he
considered it such an important decision? Give
reasons for your answer.
2. Researching One issue addressed in McCulloch was
states’ rights and federal authority. Do research to
find a recent Supreme Court case that has dealt with
this issue. Write a paragraph describing the basis of
the case and the Court’s decision.
See Skillbuilder Handbook, page R17.
For more information on states’ rights and federal authority . . .
RESEARCH LINKS
CL ASSZONE .COM
903
CONNECT TO HISTORY
CONNECT TO TODAY
1. Forming and Supporting Opinions Possible
Responses Some students may say that Marshall
knew the Elastic Clause would be necessary for
Congress to address issues that would arise as the
nation grew and changed. Others might say that it
was important for Marshall to defend the supremacy
of the federal government.
2. Researching Students might use library sources
or the Internet to find recent cases where the
Supreme Court addressed the issues of states’ rights
and federal authority. Their paragraphs should use
standard grammar, spelling, sentence structure,
and punctuation.
Teacher’s Edition 903