AJ 025 Lecture Notes - Lecture 17: Embezzlement, James Mcculloch, Democratic-Republican Party

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Congress adopted alexander hamilton"s bank of the u. s idea, creating first bank of the. Strict-construction-approached jeffersonian republicans didn"t renew bank, but after war of 1812, became apparent that national bank was needed. Congress in 1816 created second bank of the u. s. Accusations of fraud and embezzlement in bank"s branches; included in these allegations were maryland branches. In response, maryland mandated that branches of bank of u. s pay either 2% tax on all bank notes, or fee of ,000; when state officials came to collect from. Baltimore branch of bank, cashier james mcculloch refused to pay. Mcculloch was sued for violating the maryland act. Mcculloch lost in county court, and that court"s decision was affirmed by the maryland court of appeals; mcculloch then appealed to scotus. Ruling: 6 (duvall, johnson, livingston, marshall, story, washington) to 0. Marshall invoked supremacy clause: although states had power of taxation, the.

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