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Supreme Court Decision – McCulloch v. Maryland, 1819 US History/Napp Name: _________________ Historical Circumstances: “The Supreme Court first settled a dispute between a national and a state law in 1819. The Second Bank of the United States had been chartered by Congress in 1816. Large sections of the country, especially the West and South, bitterly opposed the Bank. The Bank’s tight credit policies contributed to an economic depression, and many states reacted against what they saw as a ‘ruthless money trust’ and ‘the monster monopoly.’ Two states even prohibited the bank from operating within their jurisdictions. Six other states taxed Bank operations. In 1818 the Maryland legislature placed a substantial tax on the operations of the Baltimore branch of the Bank of the United States. The cashier of the Baltimore branch, James McCulloch, issued bank notes without paying the tax. After Maryland state courts ruled against McCulloch for having broken the state law, he appealed to the United States Supreme Court. The Constitutional Issue: “One of the issues that concerned the Founders at the Constitutional Convention was how to divide power between the federal government and state governments. Reconciling national and local interests proved difficult. In the McCulloch case, the Supreme Court ruled in favor of federal power. The constitutional questions in the McCulloch v. Maryland case concern both the powers of Congress and the relationship between federal and state authorities.” ~ The American Vision Questions: 1- In what year did the Supreme Court first settle a dispute between a national and a state law? ________________________________________________________________________ 2- What had Congress chartered in 1816? ________________________________________________________________________ 3- What sections of the country were particularly opposed to the Bank? ________________________________________________________________________ 4- What had the Bank done that contributed to an economic depression? ________________________________________________________________________ 5- Explain what is meant by tight credit policies. ________________________________________________________________________ 6- Explain what critics of the Bank meant by a ‘ruthless money trust’ or ‘the monster monopoly.’ ________________________________________________________________________ 7- What had Maryland done to the Baltimore branch of the Bank of the United States? ________________________________________________________________________ 8- Who was James McCulloch and what did he do? ________________________________________________________________________ 9- Why did McCulloch appeal to the Supreme Court? ________________________________________________________________________ 10- What constitutional issue did the Supreme Court have to decide? ________________________________________________________________________ Need to Know: “McCulloch v. Maryland was a U.S. Supreme Court case decided in 1819, in which Chief Justice John Marshall affirmed the constitutional doctrine of Congress’ ‘implied powers.’ It determined that Congress had not only the powers expressly conferred upon it by the Constitution but also all authority ‘appropriate’ to carry out such powers. In the specific case the court held that Congress had the power to incorporate a national bank, despite the Constitution’s silence on both the creation of corporations and the chartering of banks. It was concluded that since a national bank would facilitate the accomplishment of purposes expressly confided to the federal government, such as the collection of taxes and the maintenance of armed forces, Congress had a choice of means to achieve these proper ends. The doctrine of implied powers became a powerful force in the steady growth of federal power.” Questions: 1- According to Chief Justice John Marshall, what powers did Congress have? ________________________________________________________________________ 2- Define ‘implied powers.’ ________________________________________________________________________ 3- Why were ‘implied powers’ necessary? ________________________________________________________________________ 4- Provide an example of ‘implied powers’ in the McCulloch v. Maryland case. ________________________________________________________________________ 5- What would a national bank facilitate? ________________________________________________________________________ Spotlight: Federalism “Federalism is a system of government in which the same territory is controlled by two levels of government. Generally, an overarching national government governs issues that affect the entire country, and smaller subdivisions govern issues of local concern. Both the national government and the smaller political subdivisions have the power to make laws and both have a certain level of autonomy from each other. The United States has a federal system of governance consisting of the national or federal government, and the government of the individual states. The U.S. Constitution grants the federal government with power over issues of national concern, while the state governments, generally, have jurisdiction over issues of domestic concern. While the federal government can enact laws governing the entire country, its powers are enumerated, or limited; it only has the specific powers allotted to it in the Constitution. For example, Article I, Section 8 of the Constitution grants Congress the power to levy taxes, mint money, declare war, establish post offices, and punish piracies on the high seas. Any action by the federal government must fall within one of the powers enumerated in the Constitution. For example, the federal government can regulate interstate commerce pursuant to the Commerce Clause of the Constitution but has no power to regulate commerce that occurs only within a single state.” ~cornell.edu 1- Define Federalism. ________________________________________________________________________ 2- What do both the national government and the state government have the power to do? ________________________________________________________________________ 3- What does the U.S. Constitution grant the federal government? ________________________________________________________________________ 4- What does the U.S. Constitution grant state governments? ________________________________________________________________________ 5- What is stated in Article I, Section 8 of the Constitution? ________________________________________________________________________ 6- What can the federal government not do? ________________________________________________________________________ 7- Now, how did the federal government and the state government differ over the power of the federal government in the McCulloch case? ________________________________________________________________________ ________________________________________________________________________ 8- What did the Supreme Court decide in the McCulloch case? ________________________________________________________________________ 9- Now, explain “implied powers”? ________________________________________________________________________ “Federalism is one of the most important and innovative concepts in the U.S. Constitution, although the word never appears there. Federalism is the sharing of power between national and state governments. In America, the states existed first, and they struggled to create a national government. The U.S. Constitution is hardwired with the tensions of that struggle, and Americans still debate the proper role of the national government versus the states. Chief Justice John Marshall, the longest-serving leader of the Supreme Court, noted that this question ‘is perpetually arising, and will probably continue to arise, as long as our system shall exist.’ ~ pbs.org Questions: 1- What is surprising about Federalism? ________________________________________________________________________ 2- Define Federalism. ________________________________________________________________________ 3- In the United States, what existed first? ________________________________________________________________________ 4- Who was John Marshall and what did he note about Federalism? ________________________________________________________________________ 5- What do you think are the advantages of Federalism? ________________________________________________________________________ 6- What do you think are the disadvantages of Federalism? ________________________________________________________________________ 7- Now, that you know what Federalism is; does the Federal government or the State governments control education? ________________________________________________________________________ 8- How do you know whether the Federal government or the State governments control education? ________________________________________________________________________ 9- How does the control of commerce differ within states and between states? ________________________________________________________________________ Political Cartoons: Federalism What is the main idea of the political cartoon? ______________________________________________________________________________ What does the elephant represent in the cartoon? ______________________________________________________________________________ What does the elephant believe about states? ______________________________________________________________________________ What does the elephant believe about the Federal Government? ______________________________________________________________________________ What does the California voter want? ______________________________________________________________________________ What is the elephant’s reaction to the voter? ______________________________________________________________________________ What is the cartoonist’s main idea? _______________________________________________ The Supreme Court’s Decision: “Chief Justice John Marshall wrote the decision for a unanimous Court. He started with the question, ‘Has Congress the power to incorporate a bank?’ In first determining the extent of congressional power, Marshall held that the Constitution is a creation not of the states, but of the people, acting through statewide constitutional conventions. Therefore, the states are bound in obligation to the Constitution, which is ‘the supreme law of the land.’ …Although the specific powers of Congress do not include the power to charter a corporation, the section enumerating these powers includes a statement giving Congress the authority to make the laws ‘necessary and proper’ for executing its specific tasks. In Marshall’s analysis, the terms ‘necessary and proper’ grant Congress implied powers to carry out granted, or enumerated, powers. … In the McCulloch case, the Court held that Congress had the power to incorporate a bank. On the question of the validity of Maryland’s bank tax, Marshall again noted the Constitution’s supremacy, but he also recognized a state’s constitutional right to impose taxes. Echoing his earlier argument, Marshall observed that a government may properly tax its subjects or their property. The federal government and its agencies, however, are not subjects of any state. A tax on a national institution by one state would be an indirect tax on citizens of other states, who would not benefit from such a tax. Furthermore, the power to tax, if misused, is also the power to harm an institution. The power of Congress to establish an institution must imply the right to take all steps necessary for its preservation. In a conflict between the federal power to create and preserve a corporation and a state’s power to levy a tax, the state must yield. Therefore, the Court denied Maryland’s power to tax the Second Bank of the United States. …The Court’s decision in the McCulloch case brought a storm of abuse raining down on the Court…The decision was particularly offensive to believers in the strict, literal interpretation of the Constitution because it sustained the doctrine of implied powers. Nevertheless, the McCulloch decision, in upholding the principle of implied powers, enlarged the power of the federal government considerably and laid the constitutional foundations for the New Deal in the 1930s and the welfare state of the 1960s.” ~ The American Vision Summarize the Main Points of Chief Justice John Marshall’s Decision in the Case: 1- ________________________________________________________________________ 2- ________________________________________________________________________ 3- ________________________________________________________________________ 4- ________________________________________________________________________ 5- ________________________________________________________________________ 6- ________________________________________________________________________ 7- ________________________________________________________________________ 8- ________________________________________________________________________ 1- What constitutional principle did the Supreme Court establish in the McCulloch case? ________________________________________________________________________ 2- What is the objective of the “necessary and proper” clause? ________________________________________________________________________ 3- What was the basis for the Court’s ruling that Maryland could not tax the Second Bank of the United States? ________________________________________________________________________ 4- How did the fact that Justice Marshall was a Federalist influence his ruling in the McCulloch case? ________________________________________________________________________ 5- How did the McCulloch ruling contribute to the strength of the national government? ________________________________________________________________________ 1- Federalism is best defined as a principle of government that (1) divides power between the central government and state governments (2) includes a system of checks and balances (3) allows the states to nullify national laws (4) places the most power in the hands of the legislative branch 2- “All bills for raising revenue shall originate in the House of Representatives; . . .” - Article 1, Section 7, United States Constitution The main reason the writers of the Constitution included this provision was to (1) give citizens more influence over taxation issues (2) assure that all citizens would pay taxes (3) deny presidents the power to veto revenue bills (4) provide the government with a balanced budget 3- “. . . it is the opinion of this committee that a national government ought to be established consisting of a Supreme Legislature, Judiciary, and Executive. . . .” - Resolution submitted by Edmund Randolph, delegate to the Constitutional Convention, 1787 In adopting this resolution, the framers of the Constitution showed their belief in the idea of (1) judicial review (2) an elastic clause (3) States rights (4) separation of powers 4- In the United States, the use of implied powers, the amending process, and Supreme Court interpretations have resulted in (1) a general loss of individual rights (2) a strengthening of the principle of separation of powers (3) the Constitution being adapted to fit changing times (4) the limiting of Presidential power in domestic affairs