Why does Congress according to Chief Justice Marshall have the power to create a national bank?
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Handout #2: Show PART 1: Guided Questions for Watching McCulloch v. Maryland Segment Directions: A. Who were the major players in the case? B. What was at the root of the conflict? C. What did the Court decide in the case of McCulloch v. Maryland? What reasons did the Court give for its decision? Do not move on to part 2 until your teacher asks you to do so. PART 2: McCulloch v. Maryland News Flash Directions: You and the other members of your group will assume the role of reporters who are breaking the story about the Supreme Court's decision in the McCulloch v. Maryland case. Of course, if you were living in 1819 when the case was decided, you would likely have reported it through a pamphlet or newspaper article. With allowances for creative time travel, your group can choose to report the story using any of the following media:
Together with your group, read the material that is provided on the rest of this handout. This should take about 15 minutes. You may want to take turns, with one student reading each section aloud as others read silently. After you read each section, discuss it to be sure that everyone in the group understands it. Then move on to the next part of the handout (and another student reading aloud). 3. After your group has read the material on the handout, spend about 15 minutes creating your news story. Background of the Case: After the War of 1812, the U.S. government needed additional funds to pay off the debts of the war. Instead of being able to borrow money from one institution, the government had to work with multiple state banks. As a result, in 1816, Congress opted to set up the Second Bank of the United States with branch offices in multiple locations. Many states opposed the National Bank because the state banks then had to compete for business. In response, Maryland passed a law requiring the national bank to pay a heavy tax to the state of Maryland. James McCulloch, the bank's cashier, refused to pay the tax. McCulloch was convicted of failing to pay the tax and was fined $2,500. He appealed the case to the Maryland Court of Appeals, which upheld the decision of the lower court and affirmed McCulloch's conviction. The dispute reached the Supreme Court of the United States. The Court Considered These Constitutional Questions:
The Court unanimously ruled in favor of the national government's right to establish the bank and also found that the state did not have the power to tax the institution. Chief Justice Marshall, writing for the Court, stated that the federal government possessed powers that were not explicitly expressed in the Constitution, known as implied powers. Although the federal government did not specifically have the power to charter a national bank, the national Congress did have the authority to make all laws "necessary and proper" to accomplish other tasks. Marshall also held that even though the states retained the power of taxation, "the 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." Maryland did not have the ability to tax a federal establishment. Taxing the national bank was really an attempt by the state to destroy the bank, and this was a challenge to the federal government's constitutional supremacy. Why does Congress have the power to create a national bank?Although the power to charter a national bank is not specifically mentioned in the Constitution, it is one of the implied powers that the Necessary and Proper Clause grants Congress. The bank is a "necessary and proper" way for Congress to conduct the financial affairs of the country.
Does Congress have the power to create a bank?The Supreme Court reversed the judgment, holding for McCulloch. In an opinion by Chief Justice John Marshall, the Supreme Court held that: Congress had the authority to create the Bank of the United States.
What influence did Chief Justice John Marshall have on the national government?Marshall's ingenious legal interpretations had two effects. They strengthened the Court's position as a coequal with the legislative and executive branches of government, and they established the Court's power of judicial review in the political system.
What did the Supreme Court say about the Fed's power to create a bank?On March 6, 1819, the U.S. Supreme Court ruled in McCulloch v. Maryland that Congress had the authority to establish a federal bank, and that the financial institution could not be taxed by the states.
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