Mcculloch Vs. Maryland Case Analysis

Money has been used for a long time. It is present in daily actions such as buying or selling products, paying or receiving for services and it is also used to store of value. In the past money was not so efficient because private banks were allowed to print their own money, in consequence was hard to know the real value of the money and if the bank had gold or silver to support the money they were printing. As a result inflation was caused, in addition to inflation the national debt was very high in consequence of War of 1812. Americans saw a need for change. In order to control the situation they rush to create the Second National Bank of United States (BUS). As a result of the inflation and large debt the President Madison signed a bill authorizing the Second National Bank of United States in 1816 with a charter lasting 20 years. The creation of the National Bank was a better option than waiting for any other private bank system to solve the situation. The second Bank of the United States had a higher position and a bigger power considering the state-chartered private banks. One of the biggest advantages was that they were allowed to open branches in any states, another important vantage was that they had larger and more trustable resources. The Second Bank of the United States

Maryland, happened in 1819. In this case the state of Maryland enacted a tax that would force the United States Bank in Maryland to pay taxes to the state. McCulloch, a cashier for the Baltimore, Maryland Bank, was sued for not complying with the Maryland state tax. This cause a issue because people began to ask if the Congress had the power to establish a National Bank under the constitution. The case end in the Supreme Court and they decided that according to Article 1, Section 8 of the Constitution the Congress had the power to create the BUS and that the state of Maryland did not had the power to tax the