The Growing Republic: Rise of a National Economy

The Marshall Court

Madison's veto of the Bonus Bill in the 1817 wasn't the only time constitutional issues presented a barrier to economic expansion. Despite the recent movement in the Republican party toward policies that might have pleased Alexander Hamilton, many Americans still resisted the growth of federal power and opposed government involvement in the economy. Many argued that the American System unfairly favored those who had wealth. For government supported economic expansion to continue, the blessing of the judiciary was required.

Federalist John Marshall remained chief justice of the Supreme Court through this period. A supporter of Hamiltonian ideals, he was a strong nationalist who supported the federal government over the states. He believed the government should promote economic growth and protect private property.

Bank of the United States

Several important cases involving economic expansion came before Marshall's Court. In the late 1810s, the state of Maryland imposed a tax on all out-of-state banks, the only one of which was the Bank of the United States. The B.U.S. refused to pay this tax. The resulting case, McCulloch v. Maryland, reached the Supreme Court and challenged the very constitutionality of the nation bank. Marshall, speaking for the Court, ruled in 1819 that the Bank was "necessary and proper" for Congress to carry out its duty to coin and borrow money. In a decision that expanded federal power, the court asserted that not all powers of the government were listed in the Constitution. The decision echoed Hamilton's defense of the Bank three decades earlier. Moreover, Marshall asserted federal supremacy by denying states the right to tax the B.U.S. The chief justice supporting this ruling by declaring that the tax targeted the B.U.S. and "the power to tax involves the power to destroy."

video Video: John Marshall

Watch the following videos about John Marshall and the McCulloch v. Maryland case.

Click the image to watch Marshall's View of Federalism

Text Version

Click the image to watch McCulloch v. Maryland

Text Version


Use the information in the video to answer the questions in the Video Guide.

Submit your completed Video Guide to the Video: John Marshall assignment link in the M3 Tasks Folder.