Mc Culloch v Maryland 1819 National Bank o

Mc. Culloch v Maryland (1819)

National Bank o 1791, the U. S. X government created the first national bank o Third President – Thomas Jefferson closed the bank o Fourth President – James Madison created a second bank of the United States in 1816

National Bank Gets Criticized o Many branches of the bank of the United States opened up across the nation o States did not like the national bank because it competed with state banks and people were scared of corruption

Maryland’s Plan o State of Maryland tried to close a branch of the Bank of the United States by making that branch pay $15, 000 in taxes o State of Maryland hoped that the bank would go bankrupt o James Mc. Culloch worked at the Baltimore branch of the Bank of the United States and he refused to pay the tax

Maryland’s Argument o State of Maryland said that there was no permission in the Constitution for the national government to create a national bank. o Article I, Section 8, Clause 18 of the Constitution lists the powers of Congress. It says nothing about creating a national bank.

Mc. Culloch’s Argument o the power to create a national bank was a "necessary and proper" power of Congress. o There is nothing in the Constitution about a national bank; however at the time the bank seemed “necessary” o Therefore, creating a national bank is an implied power of Congress.

Who was involved? o Mc. Culloch cashier for Second Bank of the United States o State of Maryland was trying to tax the Bank of the United States o Mc. Culloch issued bank notes without paying the tax Maryland had passed

The Cause of the Case 1. Can the State of Maryland tax the federal government? 2. Who has more power, the state or federal government? Federal Government Maryland