USA HISTORY

Detailed explanation-1: -In McCulloch v. Maryland (1819) the Supreme Court ruled that Congress had implied powers under the Necessary and Proper Clause of Article I, Section 8 of the Constitution to create the Second Bank of the United States and that the state of Maryland lacked the power to tax the Bank.

Detailed explanation-2: -The court decided that the Federal Government had the right and power to set up a Federal bank and that states did not have the power to tax the Federal Government.

Detailed explanation-3: -McCulloch v. In the court’s majority opinion, revered Chief Justice John Marshall affirmed the doctrine of “implied powers” granting Congress powers not expressly listed in Article I of the Constitution, but “necessary and proper” to carry out those “enumerated” powers.

Detailed explanation-4: -In 1818, Maryland legislators passed a law imposing a stamp tax on currency issued by second Bank of the United States, in an effort to hinder it from doing business. In response, a cashier at the bank’s Baltimore branch, James W. McCulloch, refused to pay the tax.

Detailed explanation-5: -In McCulloch v. Maryland, the U.S. Supreme Court ruled that Congress had the authority to charter a national bank based on the “necessary and proper” clause of the Constitution. In later years, this “implied power” enabled Congress to pass laws in many different areas.