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McCulloch v. Maryland, 17 US 316 (1819)

The Supreme Court held that the "necessary and proper clause" (Article I, Section 8, clauses 1 and 18) gave Congress the authority to establish a national bank as a legitimate vehicle for support the federal government's need to collect and distribute money.

The Marshall Court noted that the Constitution grants Congress not only enumerated powers, but implied powers that are inferred from the language of the original Articles.

Necessary and Proper Clause

"To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof."

Supreme Court Reasoning

Marshall reasoned that application of the "necessary and proper clause" (also called the Elastic Clause) allowed Congress to employ any appropriate means not specifically prohibited by the Constitution in order to carry out the business of the government.

"If the end be legitimate, and within the scope of the Constitution, all the means which are appropriate, which are plainly adapted to that end, and which are not prohibited, may constitutionally be employed to carry it into effect.

"The power of establishing a corporation is not a distinct sovereign power or end of Government, but only the means of carrying into effect other powers which are sovereign. Whenever it becomes an appropriate means of exercising any of the powers given by the Constitution to the Government of the Union, it may be exercised by that Government.

"If a certain means to carry into effect of any of the powers expressly given by the Constitution to the Government of the Union be an appropriate measure, not prohibited by the Constitution, the degree of its necessity is a question of legislative discretion, not of judicial cognizance.

State Tax on a Federal Bank

The Court also held the State lacked authority to tax a federal bank or other entity established by the government in order to exercise its constitutional powers.

Supreme Court Reasoning

In the opinion of the Court, Marshall wrote (in part):

"The Bank of the United States has, constitutionally, a right to establish its branches or offices of discount and deposit within any state.

"The State within which such branch may be established cannot, without violating the Constitution, tax that branch.

"The State governments have no right to tax any of the constitutional means employed by the Government of the Union to execute its constitutional powers.

"The States have no power, by taxation or otherwise, to retard, impede, burden, or in any manner control the operations of the constitutional laws enacted by Congress to carry into effect the powers vested in the national Government."

For more information, see Related Questions, below.

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15y ago

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