In response to this, “The Maryland legislature responded to this action by levying a tax on all branches of banks “not chartered by the legislature”—a move aimed at destroying the Baltimore branch of the Bank of the United States."1James McCulloch who was a banker at the branch in Baltimore refused to pay the annual tax. He was convicted by Maryland state court and fined a total of 2,500 dollars. Losing at the state
John Marshall’s Supreme Court hearings had a positive effect on the United States. From court cases like McCulloch v. Maryland, declared that the federal courts could decide if state laws were unconstitutional. The McCulloch v. Maryland trial went to the supreme court because Maryland had put a tax in place that too 2% of all assets of the bank or a flat rate of $30,000. John Marshall saw this tax as unconstitutional for the simple fact that people were being denied their property under the state legislature. From the Gibbons v. Ogden case, congress’s power over interstate commerce was strengthened.
In both the McCulloch v. Maryland and Gibbons v. Ogden cases, John Marshall asserted the power of judicial review, and legitimatized the Supreme Court within the national government. The Marshall Court, over the span of thirty years, managed to influence the life of every American by aiding in the development of the judicial branch and establishing a boundary between the state and national government. John Marshall’s Supreme Court cases shaped how the government is organized today. He strongly believed in Federalism, and that the national government should be sovereign, rather than the states. The Supreme Court under John
And, if the National Bank was ever to go into debt after paying off the U.S’s debt then taxes/prices would go up. Which they were legally able to do under the Constitution. As mentioned above rules for this bank were not set and are strict so things like this were legally able to take place. Jefferson angrily said “The power to create corporations had to be explicitly authorized and was not something that could be created by “implication” from the text of the Constitution (Bill of Rights Institute).” Financial corruption as Jefferson implied would only not benefit the people in the U.S.
He believed that, “without a central bank to exert some control over private banks, a decentralization of credit and money developed, favorable both to ordinary enterprise and market volatility” (Brinkley 41). Thus, by allowing states to charter their own note-issuing banks, Jefferson believed that America would be able to get rid of the national debt
The creation of the first bank in the United States prompted a political debate which started in 1791, and went on in the following years. Hamilton’s plan foresaw a bank provided with special powers and privileges, which gave birth to a wide opposition. Although Hamilton 's idea continues to exist in today’s economic environment, at that time his proposal was met with widespread resistance from individuals such as James Madison and Thomas Jefferson, who considered the creation of a federal bank as unconstitutional. Following to a broad interpretation of the Constitution, Hamilton argued that in order to have an effective bank, Congress should be provided with all the powers required. Jefferson disagreed with Hamilton, and claimed that the establishment of such a bank was not consistent with the powers that the Constitution granted to Congress.
The state banks were especially irritated and joined both the Agrarian interests and the Jeffersonians in opposition to the bank. The Agrarian interests opposed the bank because they feared that it would favor commercial and industrial industries over their own as well as promote paper currency at the expense of losing the gold and silver specie. The bank was starting to fall and as a result sold eighty percent of its stock to the public and foreigners with the remainder of it used by the Federal Government. The bank’s charter ran out in 1811 and was allowed to lapse because of a turn in political tide that was in favor of strict construction. They also had deep concerns throughout the large proportion of the British ownership of the Federal Bank.
Between 1789 and 1820 the power of the national government expanded greatly as a result of Hamilton’s economic policies, Marshall Supreme Court decisions, Henry Clay’s American System, and territorial acquisitions. While many of these programs ultimately sowed the seeds of sectionalism, the net result was a more powerful national government by 1820. As a result of Hamilton’s economic policies the government's power was expanded greatly in many different ways. With the creation of the Bank of the United States, the government had received the ability to issue banknotes of stable value and Alexander Hamilton felt a national bank was needed in that it would tie the interests of the wealthy upper class with the government's interests so therefore, to Americans in general. The idea of the national bank was opposed greatly by Thomas Jefferson, who believed it was unconstitutional and would give the government too much power.
Hamilton interpreted it loosely while Jefferson was strict. This led to an argument about whether the creation of a national bank was constitutional; Hamilton stated it was while Jefferson claimed it wasn’t. Another issue that they clashed
Hamilton vs. Jefferson Visions to Reality Thomas Jefferson and Alexander Hamilton both had very defined visions of the scope and power of the new federal government, how they saw the future of the economic development, and what the United States society should become. In my opinion Alexander Hamilton had more of an impact on the United States during the 1820’s and on contemporary government when compared to Thomas Jefferson. His policies did not strictly work during that time and many of his ideas are still seen in today’s society. Jefferson’s views and ideas on/of the national bank, higher tariffs, debt assumption, The Federalist Party, and his support of the ratification of the Constitution are all reasons in why his policies and visions came closer to becoming a reality. Thomas Jefferson and Alexander Hamilton, molded the gatherings that provoked to the twofold party system under which the U.S. works today.
The need for a national bank was very much so necessary. Hamilton also convinced president Washington to sign the bank bill by his lengthy report that stated: “This criterion is the end, to which the measure relates as a mean. If the end be clearly comprehended withan any specified powers, collecting taxes and regulating the currency, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the constitution, it may safely be deemed to come with the compass of national authority.”
The War of 1812 had affected the nation 's economy, which caused many banks throughout the nation to weaken and eventually shut down. Congress had granted a charter to the Second Bank of the United States in 1816 and supplied one-fifth of its capital of 35 million dollars. Local bankers, farmers, politicians had viewed the bank as an image of power which caused the people disfavor the bank. Many of the States were disappointed with the new Second Bank of the United States. Out of all the States, one particular state that was unhappy was Maryland.
States used bonds and loans from the British money markets to finance transportation projects, westward expansion, infrastructure improvements, and economic development. Because of the budget surplus, there was an overabundance of currency in circulation, and inflation began to rise. Several banking policies of Andrew Jackson contributed to the bank panic of 1837. In 1833, in part because of his distrust of bankers, he vetoed a bill to recharter the Second Bank of the United States, the nation’s central bank and fiscal agent. He then moved treasury money to state and local banks in the deposit act of 1836.
Madison court case that took place in 1803. The law that was declared by the Supreme Court at this hearing was that a court has the power to declare an act of Congress void if it goes against the Constitution. This case took place because President John Adams had appointed William Marbury as justice of the peace in the District of Columbia, and the new president, Thomas Jefferson, did not agree with this decision. William Marbury was not appointed by the normal regulation, which was that the Secretary of State, James Madison, needed to make a notice of the appointment. James Madison did not follow through and make a notice of Marbury’s appointment; therefore, he sued James Madison, which was where the Supreme Court came in place.
In 1816, Congress chartered the Second Bank of the United States. In a unanimous decision, the court held that Congress had the power to consolidate the bank and that Maryland could not tax an instrument the national government uses to enforce its constitutional powers. Under the Necessary and Proper Clause, Chief Justice Marshall stated that Congress has powers not expressly provided for in the U.S. Constitution. A New York State law granted Robert R. Livingston and Robert Fulton a 20-year monopoly of navigation in waters under state jurisdiction. Justice Marshall concluded that the regulation of navigation by steamboat operators and others for purposes of conducting interstate commerce was a power reserved to and exercised by the Congress
