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McCollugh Vs. Maryland

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Question: To what extent was State power reduced and Federal power elevated by this decision? Explain both short and long term results. Becca Emge Mr. Lemma History 11 McCullough v Maryland In 1819, issues with the constitution became clear when Maryland could not tax the bank. It was denied by Thomas Jefferson, because the "Constitution did not specifically give Congress such a power." (Basic Readings in U.S. Democracy). The Constitution caused a problem when Congress wasn't able to charter a national bank, being the United States Bank. ...read more.


We shall find it capable of arresting all the measures of the Government, and of prostrating it at the foot of the States. The American people have declared their Constitution and the laws made in pursuance thereof to be supreme, but this principle would transfer the supremacy, in fact, to the States." (Tax Policy Blog). This is all similar to the Articles of Confederation, since they both reject minor powers. "The Bank of the United States has, constitutionally, a right to establish its branches or offices of discount and deposit within any state." ...read more.


Jefferson denied the idea of taxing the bank because he said Congress did not have the power to do so, although Hamilton said it did. Hamilton was supported by President Washington, giving the bank a twenty year charter, but once the charter expired in 1811, Jefferson did not renew it. A year later, there was the war of 1812. The president of that time, Madison, then realized the government needed a second bank, which resulted in Congress chartering a second Bank of the United States in 1816. Eventually there became an issue, caused by James McCullough who was a cashier of the Baltimore Branch. He refused to pay tax, and went to court. ...read more.

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