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Federalism

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The two Supreme Court cases McCulloch v. Maryland and Gibbons v. Ogden developed a strong Federal government, the division of power between states and government. Maryland imposed a statute which taxes all banks operating in Maryland. Gibbons v. Ogden revealed the power to regulate commerce extends to every type of commercial intercourse between the United States and Foreign states. It does not extend nor limit the use of navigation, winds and sail or steam and fire.
In the case of Gibbons v. Ogden, taxation and regulation was very important when the case first emerged. Regulation of commerce and taxation was an “important source of transportation in early years of Republic, and interstate rivalries over rights to license and collect fees from transportation services became heated.” The case of McCulloch v. Maryland on both sides of the lawsuit, agreed that the President, directors, or the company in the bank be able to adopt Baltimore Branch, office of discount, deposit as long as Maryland had adopted the Constitution in its state.
Chief Justice Marshall decided that Congress did in fact, have right to establish a national bank as an implied power under the Necessary and Proper Clause because the bank was being used to further Congress' constitutional authority to tax and distribute funds. He found the right in Congress’ power to coin money and regulate it. The Constitution does not prohibit the exercise of implied powers necessary to assist in carrying out constitutional mandates. The court also had Supremacy Clause for both the federal law over state law which, when in conflict, protected the bank from being taxed by the states. The court struck down the tax the legislature of Maryland passed against the national bank because the state would be taking money unfairly from the whole nation as a federal bank.
In the case of, Gibbons v. Ogden, was a controversial case because it was about a privately owned steamboat company who was working on a lake

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