MCCULLOCH V. MARYLAND
Facts of McCulloch
Congress chartered the second bank of the U.S. in 1816. This bank ran into trouble: its loan policies were very restrictive; during recession, it foreclosed on a lot of agricultural property, which made the bank very unpopular. There was also corruption in the bank (Maryland branch was particularly corrupt). Maryland imposed a tax on the banks not chartered by the state. The U.S. bank refused to pay the tax. McCulloch argued that the tax constituted a wrongful interference with Congress's lawmaking.
Marshall's McCulloch textual argument
Necessary and Proper Clause Marshall focuses on the word "necessary:" while one meaning of necessary is essential, as MD argues but it's not the only meaning of necessary (i.e. convenient). It should be construed broadly, Art. 1 Sec. 10 (inter-textual argument) a canon of constitutional construction that when interpreting any kind of legal document, if at some point a word is used to mean one thing, we presume that it means the same thing when used again though the document, unless there is reason to change its meaning.
Marshall's most famous line ever (originally from McCulloch)
we must never forget it is the constitution we are expounding.
Why is McCulloch an important case?
1. Strengthened congress (construed congressional power liberally) 2. Court will have a relatively deferential role if congress abuses the power 3.Indicates flexible manner of reading the constitution broadly 4.Acts as foundation for broad federal power 5. Recognized the popular sovereignty theory 6. Recognized the political safeguards theory in federalism 7. Placed restrictions on state authority with respect to federal instrumentalities 8. Provided a significant example of structural analysis
Two main issues of McCulloch v. Maryland
1. Is a federal nation wide bank constitutional? 2. Can Maryland tax a federal entity?
Marshall's doctrinal test in McCulloch (textual argument)
1. Let the end be legitimate 2. Within the scope of the constitution 3. All means appropriate 4. Plainly adapted to that end 5. Not prohibited 6. But consistent with the spirit and letter of the constitution 7. This is a DEFERENTIAL standard giving Congress every benefit of the doubt. *Note Marshall made this test but didn't actually apply it.
Rule outcomes from McCulloch (there are two)
1. Necessary and proper clause gives implied powers for certain federal powers giving congress the discretion and power to choose and enact the means to perform the duties imposed upon it. 2. The federal constitution and the laws made pursuant to it are supreme and control the constitutions and the laws of the states.
Marshall's McCulloch structural argument main points
IMPLIED POWERS the constitution was intended to last a long time and things change, the framer's knew they could not draft to anticipate every situation. The constitution is a great OUTLINE. If the framers tried to explicitly provide for everything without the constitution being a failure. It needed to be short and readable to everyone. Congress must first look to the enumerated powers then use their discretion to imply in what way they may carry out their duties.
Marshall's main argument's in McCulloch v. Maryland
Popular sovereignty (better than compact theory) Structural (implied powers) Textual (Necessary and Proper clause)
Marshall concedes in McCulloch v. Maryland that congress has to first point to the constitutional enumerated powers before implicating power: (MCCULLOCH V. MARYLAND)
Power to tax Borrow money regulate commerce Declare and conduct war/raise and support armies and navies
What is the popular sovereignty theory (MCCULLOCH V. MARYLAND)
the theory that the constitution came from the people, clearly indicated by Art. VII. The ratification through the popular conventions made the constitution the supreme law of the land. (Lincoln used this argument in the civil war, and this eventually became the predominant theory)
What is the compact theory (MCCULLOCH V. MARYLAND)
the theory that the constitutional origin is that the states relinquished their sovereignty partially to create the constitution. BASICALLY, a contract between the individual sovereign states. (supported by Jeffersonian & judge Roane who wrote all those opinions criticizing Marshall)