McCulloch v Maryland (1819)
National Bank
 1791, the U.S.
government created the
first national bank
 Third President – Thomas
Jefferson closed the bank
 Fourth President – James
Madison created a second
bank of the United States
in 1816
National Bank Gets Criticized
 Many branches of the bank of the United
States opened up across the nation
 States did not like the national bank because
it competed with state banks and people
were scared of corruption
Maryland’s Plan
 State of Maryland tried to close
a branch of the Bank of the
United States by making that
branch pay $15,000 in taxes
 State of Maryland hoped that
the bank would go bankrupt
 James McCulloch worked at
the Baltimore branch of the
Bank of the United States and
he refused to pay the tax
Maryland’s Argument
 State of Maryland said that there was
no permission in the Constitution for
the national government to create a
national bank.
 Article I, Section 8, Clause 18 of the
Constitution lists the powers of
Congress. It says nothing about
creating a national bank.
McCulloch’s Argument
 the power to create a national
bank was a "necessary and
proper" power of Congress.
 There is nothing in the
Constitution about a national
bank; however at the time the
bank seemed “necessary”
 Therefore, creating a national
bank is an implied power of
Who was involved?
 McCulloch cashier for Second Bank of
the United States
 State of Maryland was trying to tax the
Bank of the United States
 McCulloch 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
The Effects
1. Federal (national) government had
implied powers
2. National government is superior to
the state government
John Marshall
Define Implied Powers
Powers not specifically
stated in the constitution
“necessary & proper”
Define enumerated powers
Those powers that are
given to the National
government that are
written in the