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Unformatted text preview: Federalism 2
Chapter 3 Describe the organic and compact theories of the Union By the end of this presentation, you should be able to: *Explain the rulings in and importance of McCulloch v. Maryland and Dred Scott Explain the nationalist and states' rights perspectives on the Constitution *Define the terms "dual federalism" and "laissez faire capitalism" Federalism in a Historical Perspective
Examples from Decisions of the Supreme Court
This section on federalism will show: Two different conceptions of the nature of the Union under the Constitution *How the balance of power in the federal system as shifted over time from the states to the federal government The Supreme Court case star-system Cases are graded in order of their importance:
*=essential to American government, politics and history =essential * =important, illustrates a point * =interesting, but unessential Historical Perspective Things to look for You should at least know and understand three-star cases A Early Nation-Centered Idea of the Union
McCulloch v. Maryland (1819)
We, the People *This Supreme Court decision is as important as Marbury v. Madison
The decision in this case will reflect the Federalist views of
*Rated at John Marshall The decision will strengthen the power of the national government by:
*Sanctioning the idea of implied powers Use of the Supremacy clause If you'd like to read any of the cases mentioned in the book Finding Court Cases or slides, go to: *http://www.law.cornell.edu/ *Look under "court opinions" for the "Supreme Court"; once there look for the alphabetical list of historic cases. A. Hamilton urges creation of a national bank First bank: 1791-1811 *Second bank: 1816 Bank was controversial Jefferson objected to it *States resisted it
*Maryland branch was notoriously corrupt
*Unsecured loans to cronies *Bank money used for speculation *Loans called in to cover speculation The Facts Behind the Case The National Bank in Maryland *The State of Maryland attempted to close the bank through oppressive taxation *McCulloch (the bank's cashier) refused to pay the tax Hamilton and the banking system: *http://www.ushistory.org/gop/tour/firstbank.htm Jefferson on the banks (scroll down to the banking For more on the bank section): A history of federal banks: *http://www.bos.frb.org/education/pdf/begin.pdf *http://etext.virginia.edu/jefferson/quotations/jeff1325.htm Does the Constitution give Congress the authority to create a bank?
Even if Congress can create a bank, does a state have the
If so, how What the Court must decide: authority to tax a branch of that bank within its borders? Can Congress create a bank?
*Maryland's argument: NO! *Marshall's answer: YES!
*Power to create a bank is not in Art. I, 8 *Congress has explicit powers in Art. I, 8 that relate to money or require financing *The necessary and proper clause gives Congress the choice of means to implement those powers, so long as:
*The choice is reasonable *The choice is clearly related to explicit powers *Compare Marshall's arguments in McCulloch on implied powers with Hamilton's argument in Federalist No. 23:
What do you think?
*http://memory.loc.gov/const/fed/fed_23.html Sidebar: John Marshall, Plagiarist? Maryland's argument: YES! Can Maryland tax the bank? *Maryland's argument began with the position that the status of the states under the Constitution was the same as under the Articles of Confederation
The states were and are sovereign *The Constitution was an agreement among sovereign states Marshall's answer: NO! "The power to tax is the power to destroy" *Maryland cannot tax in order to harm or destroy a federal bank *National law (and things created by national law) prevails over state law because of the supremacy clause An overview of the case: *http://www.landmarkcases.org/mcculloch/background2.html Can Maryland Tax the Bank? For more on McCulloch A Nationalist View of Commerce
Gibbons v. Ogden (1824) *The federal government granted licenses for the operation of steamboats *The New York legislature granted a monopoly to a NY company to run steamboat ferry service between NY and New Jersey *A rival NY company violated the state sanctioned monopoly *Both companies held federal licenses Facts: Article I, 8 grants Congress the authority to regulate John Marshall's Opinion commerce among the states, with foreign nations and Indian tribes *Steamboat service between NY and NJ is interstate commerce
The states cannot usurp powers delegated to Congress by
*Therefore Congress is the only regulator the Constitution The historical background: *http://www.ulster.net/~hrmm/steamboats/monopoly.html For more on this case State-Centered Idea of the Union
States' rights theory held that the national government was States' Rights Theory We, the States a creation of a compact among sovereign states slavery in the South This theory was also constitutional argument to support The national government was subordinate to the states John C. Calhoun The Constitution created a nation of states who are supreme *The doctrine of nullification: each state had the right to declare that a federal law would be null and void within its borders *For more on nullification, see: *http://en.wikipedia.org/wiki/Nullification A States' Rights Theorist A States' Rights View in Court
The Dred Scott Decision (1856) Facts: Missouri Compromise of 1820 outlawed slavery in free states or in the territories *Dred Scott was owned by an army officer who took him north to free territory *Dred Scott sued for his freedom in federal court arguing that his residence in free territory made him a free man Can a slave sue in federal court? Chief Justice Taney's Opinion: Only citizens can sue in court NO! *Slaves are not citizens; they are property *Any person of color--free or slave--is not and can never be a citizen *Congress cannot regulate slavery in the territories The Powers of Congress and the Rights of the States
*Congress cannot deprive someone of property on the basis of where he or she lives *A territory that may become a state has the same rights as a state, and slavery is an issue for the state to decide *Issue of slavery could not solved politically *The Dred Scott decision made the Civil War inevitable *Read the first part of the Taney opinion in this case: *http://supct.law.cornell.edu/supct/cases/name.htm *Scroll down to find the official name of the case, Scott v. Sanford (1856) *Note how Taney justifies his conclusion that persons of color--free or slave--can never be American citizens Taney's Opinion The National Park Service tells the story of Dred Scott For more (recommended): *http://www.nps.gov/jeff/ocv-dscottd.htm High water mark of states' rights and the compact theory The Civil War *The War began as a war over the nature of the Union *The war did not become a war about slavery until late in 1862 with the Emancipation Proclamation *13th Amendment: no slavery or involuntary servitude *14th Amendment
Defines citizenship *Protects life, liberty or property by due process of law *Equal protection of the law A Constitutional Revolution *15th Amendment: right to vote shall not be abridged by race or color Federalism in the Late 19th and Early 20th Centuries
*"Dual federalism" Dominant theory of federalism until the middle of the 1930s *Theory requires rigid separation between the federal and the state government *Each is sovereign in its own sphere of responsibility *The Supreme Court of the time will adopt this conception of federalism and make that rigid separation in its opinions After the Civil War A New Conception of Federalism *"Laissez-faire Capitalism" A Popular Economic Theory Markets should be free of government interference This theory was popular with the industrialists of the age *The U.S. Supreme Court of this era will endorse an extreme version of laissez-faire capitalism of its decisions The market will regulate itself through the laws of supply and demand The rise of corporations: *http://us.history.wisc.edu/hist102/lectures/lecture05.html For information on late 19th America ...
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