3. Explain the debate involved in McCullochv. Maryland and the final decision in the case. Why was the deci-sion significant?

The ruling in the case of McCullough v. Maryland (1819) was significant in showing that the federal government has implied powers, beyond the specified powers enumerated in the Constitution, and that the federal government's authority supersedes a state's authority.

Background / details:

After enumerating a number of the powers of Congress, including borrowing money, coining money, regulating commerce, etc, Section 8 of Article I closes with by saying Congress shall have power "to make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."

Alexander Hamilton had referenced that constitutional clause when, as Secretary of the Treasury, he sought to establish the First Bank of the United States in 1791. A national bank was not strictly listed as something Congress could establish, but there was nothing in the Constitution to prohibit it. And the "necessary and proper" clause gave leeway to create such an institution.

In the case of McCullough v. Maryland, the state of Maryland attempted to interfere with the Second Bank of the United States (which succeeded the First Bank of the US), by taxing bank notes if the banks were not chartered in Maryland. The Second Bank of the United States was the only such bank in Maryland at the time, and was the obvious target of the law. The Supreme Court sided with the federal government's power to establish such a bank, and with the federal government's authority over state laws that contradicted its authority.