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McCulloch v Maryland The case of McCulloch v Maryland was brought to the United States Supreme Court in 1819 The decisions of Chief Justice John Marshall in this case would set precedence for all future cases involving the expansion of federal power and any impediment on federal powers by state governments The first Bank of the United States BUS was created in 1791 as part of Alexander Hamiltons financial plan It was opposed by Jefferson who claimed that Congress was not specifically given the right to charter a bank Hamilton argued along the lines of the elastic clause that Congress had the power to do anything not specifically forbidden in the Constitution President Washington agreed with Hamilton and the bank was given twenty-year charter expiring in 1811 After the war of 1812 the Madison administration sought new national development This proved difficult with the nations finances loosely organized by state chartered banks Inflation and a lack of regulated currency from the state banks prompted Madison to sign a bill creating a second BUS in 1816 The new BUS imposed strict regulation of currency on the state banks and would not accept notes from banks that had overextended themselves In retaliation the Maryland legislature attempted to tax the Baltimore branch of the BUS James McCulloch the treasurer for this branch refused to pay the tax and was brought to trial in the Supreme Court by the state of Maryland Chief Justice Marshall asked two questions in this case The first question is has Congress power to incorporate a bank Marshall states This government is acknowledged by all to be one of enumerated powers Hamiltons argument Washington to charter the first BUS maintains true for this second BUS Under the powers of the elastic clause and simply because the Constitution does not forbid Congress from chartering a bank it would seem acceptable for the second BUS to exist Marshall explains that
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