McCulloch v. Maryland
McCulloch v. Maryland
MARYLAND
JULIÁN SERRANO G.
13/02/2018
McCulloch v. Maryland
Background / Facts
■ 1816 – Congress passes an act to incorporate the Second Bank of the United States
in Philadelphia, Pennsylvania
■ 1817 – The bank opens a second branch in Baltimore, Maryland
■ 1818 – The General Assembly of Maryland passes an “An act to impose a tax on all
banks, or branches thereof, in the State of Maryland, not chartered by the
legislature”
McCulloch v. Maryland
James W. McCulloch
■ Cashier of the Baltimore branch of the Second Bank of the United States
■ He refuses to pay a tax on the bank; files a lawsuit against the State of
Maryland
■ State Courts uphold Maryland’s stance; case goes to the Supreme Court
McCulloch v. Maryland
Legal Issues
■ Did Congress have the power to incorporate the (nationally chartered)
Second Bank of the United States?
■ Does a state have the constitutional power to tax a nationally chartered
bank?
McCulloch v. Maryland
Arguments
■ 1. The First Bank of the United States (1791-1811) as authority for the
constitutionality of the Second Bank.
■ 2. The people are sovereign, not the states.
■ 3. Congressional powers don’t have to be explicitly enumerated in the
constitution.
■ 4. The necessary and proper clause (Art. I Sec. 8).
■ 5. Supremacy of the Constitution and federal law over state law (when
conflicting).
McCulloch v. Maryland
Decision // Rationale
1. Can Congress create a bank?
■ Yes, Congress has the power to pass all laws “necessary
and proper” to carry out its delegated powers in Article I,
Section 8 of the Constitution.
■ The creation of the bank provides the means to carry out
these powers.
McCulloch v. Maryland
Decision // Rationale
2. Can a state tax the bank?
■ No, the states can only tax their people and their property.
■ The Second Bank of the United States is an instrument of
the U.S. government.
– Representing all of the people of the United States.