McCulloch V. Maryland (1819) Case
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In 1819, Maryland State attempted to obstruct the operations of a branch of the second Bank of the United States by imposing a tax on all notes not licensed. This law, in its language, was applicable in this case; however, it was perceived to target the U.S. Bank only. Maryland State, during that period, had the U.S. Bank as the only existing out- of- state bank, in the region (Ripper 138). This case, for the first time, made the U.S. Supreme Court cite the doctrines of enforced powers, in the Constitution, which permitted the Federal government to pass laws and policies, not provided for, in the Constitutions list of powers, as long as they are useful in validating the significance of those powers. In the ruling, Justice John Marshall, a U.S. Supreme Court judge, determined that a states action cannot obstruct the federal governments powers to exercise constitutional clauses (Ripper 138). In addition, the Article I, section 8, Necessary and Proper Clause of the U.S. Constitutions, allows the Congress to formulate valid powers, which are relevant with the constitution, for a practically functional government (Ripper 139).
In the beginning of the judgment, Justice John Marshall ruled that Congress had the powers to obstruct the banks operations. He argued that the constitution is a social contract that is drafted by the people at the Constitutional Convention (Ripper 138). Therefore, a government is formed by the people, and it proceeds to bind the state sovereignties. This implies that the federal government is supreme because it is created by the consent of the people (Ripper 138). Second, the court established that the Congress is bound to act within certain limits of the implied powers of the constitution. This is because not all implied powers are enumerated, in the Constitutions list of powers, and if this was possible, then Americans would not have understood and embraced the document. A term like “bank” is not included in the Constitution; however, it is represented by terms like regulating commerce, lay and collect taxes, and to borrow money (Ripper 140). Similarly, it is not explicitly stated in the constitution that Congress has the implied power to create a bank; however, they have the Constitutional right to create one.
Justice John Marshall also supported the provisions of the Necessary and Proper Clause, which allows the Congress to create valid objectives that are within the Constitutions