Mcculloh v Maryland Case
In many ways, the opinion in this case represents a final step in the creation of the federal government. The argument involved which was the power of Congress to charter a bank. The larger questions would go out to the Constitutional interpretation and would still be debated to this day. In 1791, as part of his financial plan, Secretary of The Treasury Alexander Hamilton proposed that Congress charter a Bank of the United States, to serve as a central bank of the country. Secretary of State Thomas Jefferson opposed the notion, stating that the Constitution did not specifically give Congress such a power which was under a limited government because Congress had no powers other than those specifically given to it. Upon hearing of Jefferson’s opinion Hamilton responded by arguing that Congress had all powers except those specifically denied to in the constitution also known as the “necessary and proper” clause Of Article l. Washington who was president at the time had agreed with Hamilton and there was when the bank was given a twenty-year charter that would expire in 1811. It wasn’t until the war of 1812 that President Madison realized the United States needed a central bank. He had recommended another bank be opened and in 1816 congress chartered a Second bank of the United States which quickly established branches throughout the Union. Maryland imposed a tax on the bank where it was $15,000 a year. James Mcculloch, who was a cashier at the Federal Bank in Baltimore, had refused to pay any taxes because he believed that the bank had no authority to state taxation. Maryland then filed a suit against McCulloch in order to collect the taxes that he had refused to pay. The issue then turned into the McCulloch v Maryland Case that went on to the Supreme Court. Maryland argued that as a sovereign state, it had the power to tax any business within its boundaries. McCulloch’s attorneys argued that a national bank was “necessary and...
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