McCulloch v Maryland: Implied Powers
After the War of 1812, the U.S. economy was in chaos. The First Bank of the United States (chartered in 1791) had expired in 1811, and the war exposed the need for a national bank to stabilize currency and manage federal finances. In 1816, Congress chartered the Second Bank of the United States with a 20-year charter. The bank opened branches across the country, including one in Baltimore, Maryland. Many states hated the national bank because it competed with state-chartered banks and could restrict state bank lending by demanding payment in gold or silver. In 1818, the Maryland legislature passed a law taxing any bank operating in Maryland that was not chartered by the state—a $15,000 annual tax designed to drive the Baltimore branch out of business.
McCulloch v Maryland: Implied Powers
After the War of 1812, the U.S. economy was in chaos. The First Bank of the United States (chartered in 1791) had expired in 1811, and the war exposed the need for a national bank to stabilize currency and manage federal finances. In 1816, Congress chartered the Second Bank of the United States with a 20-year charter. The bank opened branches across the country, including one in Baltimore, Maryland. Many states hated the national bank because it competed with state-chartered banks and could restrict state bank lending by demanding payment in gold or silver. In 1818, the Maryland legislature passed a law taxing any bank operating in Maryland that was not chartered by the state—a $15,000 annual tax designed to drive the Baltimore branch out of business.
McCulloch v Maryland: Implied Powers
After the War of 1812, the U.S. economy was in chaos. The First Bank of the United States (chartered in 1791) had expired in 1811, and the war exposed the need for a national bank to stabilize currency and manage federal finances. In 1816, Congress chartered the Second Bank of the United States with a 20-year charter. The bank opened branches across the country, including one in Baltimore, Maryland. Many states hated the national bank because it competed with state-chartered banks and could restrict state bank lending by demanding payment in gold or silver. In 1818, the Maryland legislature passed a law taxing any bank operating in Maryland that was not chartered by the state—a $15,000 annual tax designed to drive the Baltimore branch out of business.