1. McCulloch v. Maryland, (1819)
2. Facts: In 1816, Congress chartered the Second Bank of the United States, which became active in Maryland. In 1818, the Maryland legislature passed an Act to tax any bank not chartered by the Legislature of Maryland, thus taxing the U.S. Bank. The law provided for private remedies against the bank operators, of which, one was McCulloch.
3. Procedural Posture: The trial court entered judgment on the basis of an agreed statement of facts (that the U.S. Bank was not chartered by the Maryland legislature), and the Maryland Court of Appeal affirmed. An appeal was taken by writ of error to the Supreme Court.
4. Issue: 1) Whether Congress has the power to incorporate a bank; and 2) Whether the state of Maryland may, without violating the constitution, tax the U.S. Bank.
5. Holding: 1) Yes. 2) No.
6. ∏ Argument: Although Congress does not have the enumerated power to incorporate a bank, such power is implied by the “necessary and proper” language of Article I Section 8.
7. ∆ Argument: Congress not only does not have the enumerated power to incorporate a bank, but furthermore only has the powers that the states, as independent sovereigns, give to it. This is evidenced by the “necessary and proper” language which should be construed to be a limit on Congressional power, implying only strict necessity.
8. Majority Reasoning: Marshall first noted that the Congressional power established by the Constitution originates from the people, not the states. Article II should be read in light of the previous Articles of Confederation, which were unworkable because of their strict limitations on express Congressional power. The Constitution, by nature, must be general in order to adapt to unforeseen circumstances. Thus, there must be some implied powers to allow Congress to exercise the broad range of express powers given as means to ends. The language “necessary and proper” should be construed to mean “convenient, or useful, or essential” not as things that are absolutely necessary, otherwise the word “proper” would be superfluous, and there would be no need to include the word “absolutely” in the enumeration of powers to the states. The “necessary and proper” language is included among the power of Congress, not the limitations, and so should be read as enlarging the scope of Congress’ powers. All means which are appropriate and plainly adapted to the exercise of enumerated powers are constitutional, not just those that are strictly necessary. As to whether Maryland could tax the federal bank, the power to tax something is the power to destroy it. Since the states are necessarily inferior to the federal government, the states do not have the power to “destroy” (by taxing) the federal government. The people did not design to make their federal government dependent on the states.
