1. During the 1800's, when the nation was newly formed, the country was unsure as to how much power should the federal government attain. Some people believed that it should have limited power, only the ones listed in the constitution. These were the views of the strict constructionist. The loose constructionist, on the other hand thought, that the national government could have the powers not specifically written in the Constitution. In 1819, a very important Supreme Court case, McCulloch vs. Maryland, helped resolve this problem.
2. This case was between the state of Maryland and James McCulloch, who worked at the state bank, which was located in Maryland. Maryland, who thought that the power of the national government was growing, did not want any national banks on its premises, thus it tried to get rid of it by asking the bank to a pay a tax of $15,000 each year. James refused the unbelievable offer, replying that it was perfectly legal to have a national bank in Maryland. The state of Maryland took James to the court saying it had the power to tax any business on its property.
3. The ruling in the court went in favor of the State of Maryland. The lawyers of Maryland had stated that since the national bank was on Maryland's property it had to pay a tax. They also stated that the Constitution did not give Congress the power to create a national bank. McCulloch was convicted and fined for $2,500. McCulloch then appealed the court's decision to the Maryland Court of Appeals. McCulloch's lawyer stated that there are many things not specifically stated in the Constitution but are nonetheless extremely important for the Congress to do, including the establishment of a national bank. He also said that the tax on the bank was unfair because it will keep the bank from accomplishing its job. The Maryland Court of Appeals agreed with the lower court's decision. McCulloch finally appealed to the Supreme Court of the United ...