McCulloch v. Maryland, 1819

Background of the Case

First Bank of the United States established

Charter not renewed by Madison, fear of ‘implied powers’ and all-powerful national government

Second Bank established branches through US

Brought tensions for fear of fed. gov. being too powerful, competing with state banks’ money

Facts of the Case

Maryland passes a law forcing banks chartered outside of the state to pay yearly tax; only applies to the Second Bank

James McCulloch refuses to pay tax; Maryland tries to shut Baltimore branch down

State of Maryland sues McCulloch; McCulloch is convicted, appeals to Maryland Court of Appeals; convicted again, McCulloch appeals to SCOTUS

Constitutional Issue at Hand

Did Congress have the authority under the Constitution to commission a national bank?

If so, did the state of Maryland have the authority to tax a branch of the national bank operating within its borders?

Constitutional Texts in Question

Constitution, Article I, Section 8, Clause 18: Necessary and Proper Clause

Constitution, Article VI, Clause 2: Supremacy Clause

Constitution, Amendment X

Justice Decision

Unanimous in favor of McCulloch, the federal government

Details of the Decision

Congress has power under the Const. to create a national bank

Nothing in Const. restricts Congress from it, so it falls under implied powers: Necessary and Proper Clause

Maryland can’t tax federal banks operating in Maryland because federal law trumps state law