McCulloch v. Maryland
During the Panic of 1819, many Americans blamed the Second Bank of the United States for the country's financial problems. Some states also began to ask whether Congress had the power to create a national bank at all. In 1818, Maryland passed a law that taxed the Second Bank. James McCulloch worked at the bank's Baltimore branch. He refused to pay the tax because he believed Maryland lacked constitutional authority to tax a federal bank. Maryland sued him, and the case went to the Supreme Court.
In 1819, Chief Justice John Marshall wrote the Court's decision. Maryland argued that creating a national bank was not among Congress's enumerated powers because the Constitution does not mention banks. Marshall disagreed. He said the Necessary and Proper Clause gave Congress this power, even though it was not written down directly. The Court ruled that a bank was a reasonable means for Congress to carry out its other functions, such as collecting taxes, borrowing money, and handling the nation's finances.
The Court also ruled that Maryland could not tax the bank. Marshall said the Supremacy Clause makes the Constitution and federal laws the supreme law of the land. Since Congress had the right to create the bank, Maryland could not use a tax to get in its way.
The ruling in McCulloch v. Maryland strengthened the federal government. It showed that Congress could use powers not explicitly written in the Constitution. It also showed that states could not stop actions the federal government could legally take.
Gibbons v. Ogden
In 1824, the Supreme Court decided another important case about the powers of the federal government. New York gave Aaron Ogden a monopoly, or exclusive right, to run steamboats between New York and New Jersey. Thomas Gibbons had a federal license to operate along the same route. When New York tried to stop Gibbons from operating, the case went to the Supreme Court.
Chief Justice John Marshall wrote the Court's decision. The Court ruled that the Commerce Clause gives Congress the power to regulate interstate commerce. This means Congress can control trade between states. This included navigation between states. Because Gibbons had a federal license, New York could not stop him from operating his steamboat.
The Court also ruled that when a state law conflicts with a federal law, the federal law has priority under the Supremacy Clause. States could not pass laws that interfered with Congress's constitutional powers.
The ruling in Gibbons v. Ogden strengthened the federal government. It confirmed that Congress had the authority to regulate trade and transportation between states. It also helped create a more uniform system of interstate commerce across the United States.
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