Overview
This lecture covers the Supreme Court case McCulloch v. Maryland (1819), which clarified the balance of power between federal and state governments and established the constitutionality of a national bank.
Background and Facts
- In 1816, Congress created the Second National Bank to control unregulated currency from state banks.
- Maryland imposed a tax on the federal bank, challenging Congress's authority.
- James W. McCulloch, a cashier at the federal bank in Baltimore, refused to pay the tax.
- Maryland sued McCulloch to collect the tax, raising constitutional questions.
Legal Issues and Questions
- The case asked if Congress had the constitutional power to create a national bank.
- It questioned whether a state could tax or ban a federally created bank.
- The broader issue was the division of federal and state sovereignty.
Supreme Court Decision and Reasoning
- Chief Justice Marshall stated Congress could create a bank as an implied power under the Necessary and Proper (Elastic) Clause.
- The Constitution does not need to list every power or means that Congress can use.
- Federal laws made under the Constitution are supreme over state laws.
- States cannot tax or impede constitutional federal operations, as "the power to tax involves the power to destroy."
- The Court unanimously held Maryland's tax unconstitutional.
Impact and Principles Established
- Upheld the doctrine of implied powers, allowing Congress flexibility beyond explicitly listed powers.
- Reinforced federal supremacy over the states on constitutional matters.
- Limited state's ability to interfere with or tax federal institutions.
- Clarified that the federal government derives authority from the people, not just the states.
Key Terms & Definitions
- Implied Powers — Powers not explicitly listed in the Constitution but necessary to execute enumerated powers.
- Elastic Clause / Necessary and Proper Clause — Article I, Section 8, giving Congress power to make laws needed to execute its powers.
- Supremacy Clause — Establishes federal law as the highest law, overriding conflicting state laws.
- Sovereignty — Supreme power or authority, debated between state and federal government in this case.
Action Items / Next Steps
- Review the text of Article I, Section 8 (Necessary and Proper Clause) and Article VI (Supremacy Clause) of the Constitution.
- Be prepared to explain the significance of McCulloch v. Maryland for federal-state relations.