McCulloch v. Maryland

McCulloch v Maryland was the 1819 Supreme Court case dealing mostly with the issue of Federalism. This McCulloch v Maryland summary explains the creation of a National Bank which was encouraged by Alexander Hamilton, but opposed by Thomas Jefferson, due to lack of authority given by the Constitution. The first National Bank was chartered, but then died 20 years later. In 1816, a National Bank was re-instated to help deal with debts from the War of 1812. This Second National Bank, established in Maryland, was taxed heavily by Thomas Jefferson and the State of Maryland. Federal Bank Cashier, James McCulloch, refused to pay the tax, stating that the state did not have the right to tax an institution of the Federal Government. Ultimately, the Supreme Court stated that Congress had the right to create the National Bank, under the Necessary and Proper Clause. Also, the State of Maryland did not have the right to tax the National Bank and the Federal Government under the Supremacy Clause.