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Describe The Background  Decision And Impact Of Mcculloch v. Maryland(1819)

Referencing Styles : Harvard | Pages : 1

The case of McCulloh vs. Maryland was a decision made by the Supreme Court of US which defined the opportunity of the US Congress’s legislative power and also this decision defined the power of the US Congress related to the American State Legislation.

 The establishment of the National Bank for the US was the one of the greatest controversy of all time and it is related to the US constitution’s ratification in the year of 1788. After the inauguration of the first president of US, George Washington in the year of 1789, the process of National Bank formation initiated. After the inauguration, US president George Washington instructed his secretary of Treasury, Alexander Hamilton to initiate the process of bank formation in order to control the currency system of the country and this process is also expected to control the poor economic situation of the country on that particular time as well.  In the contrary, it was reported that, the National Secretary of State of US government in the Washington’s Government, strongly opposed this decision of forming the bank in the country. The Secretary of State Thomas Jefferson suspected that, the forming the national bank in the country may worsen the condition as formation of the national bank in the country will seize the power of the various states of the country and the power will concentrate in the hand of the federal government in a dangerous manner. In the year of 1791, Congress of US created the first bank with a 20 year charter.  After that it is reported that, the people who supported the Hamilton’s concept of national bank formation, they eventually form a new party named the Federalist Party. On the other hand, the person who opposed the idea of Hamilton and supported Jefferson, formed a new party named Democratic Republican Party in the country. The first bank’s charter expired in the year of 1811 and the charter was not renewed. The Government of US only had the 20% of the bank’s equity.  Moreover, a few states in the US passes laws related to the hindering of the Bank’s operation. In the year of 1818, the Maryland General Assembly passed the Maryland State Legislation and as per this legislation, every bank operating in the Maryland area has to pay an annual tax of $15000. This bank is the second bank of US that met the criteria of this legislation. James William McCulloh was the head of the Baltimore Branch of the Second Bank of USA and it was reported that this bank refused to give tax to the government.

 The Court of the US decided that Congress had the power to form the Bank. Chief Justice Marshall supported his assumption with four main opinions. Firstly, he claimed that historical practice formed Congress's power to form the bank. Marshall raised the first Bank of the United States history as authority for the constitutionality of the second bank. Secondly, Marshall countered the argument that states hold definitive power because they indorsed the constitution. Marshall contended that it was the people who ratified the Constitution and thus the people, not the states, who are autonomous. Thirdly, Marshall addressed the possibility of congressional authorities under Article I. The Court broadly termed Congress's authority before it addressed the Necessary and Proper Clause. Marshall acknowledged that the Constitution does not count a power to produce a central Bank but said that is not dispositive as to Congress's power to found such an organisation. This decision of this case greatly affect the possibility of Congress's powers and describing the association between the federal government and the states.  

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