Gibbons Vs Ogden Research Paper

Was an argument between McCulloch vs Maryland. The argument was a battle between whether the constitution allows a national government to run a bank. As well as does the constitution allow state governments to tax a national bank operating within its borders? However the Supreme Court ruled in favor of banks being able to be built and run by the national government. However they ruled that state governments are unable to tax a national bank that is within their borders.

The Bank Recharter Bill of 1832 was a bill designed to renew the corporate charter of the Second Bank of the United States. Although Congress passed the bill, Andrew Jackson vetoed it a week later. President Andrew Jackson opposed the Second Bank of the United States because he believed that it held too much power without accountability and that it was unconstitutional.The bank was heavily biased toward business interests and had no congressional oversight. This bias led the bank to not support western expansion, which Jackson favored. Jackson also felt that the bank was too powerful, both politically and economically.

During George Washington’s presidency of our new nation, there was a large disagreement between his Secretary of Treasury, Alexander Hamilton and his Secretary of State, Thomas Jefferson on several economic and political challenges.To get the nation out of extreme debt, Hamilton came up with a financial plan that included the creation of a national bank. This national bank would be a safe place to deposit government funds, a source of loans for the government and businesses, and the creation of a national mint. However, Jefferson was strongly opposed to the idea of a national bank, he believed it was strictly against the Constitution and would give the federal government too much power. Hamilton argued that Article I Section 8 of the Constitution

Ogden was brought in front of Chief Justice, John Marshall (New York State Library, “Steamboat Timeline”). He will examine the Commerce Clause of Article 1, section 8 (“McBride, “Landmark Cases”). The clause read that “Congress shall have power to regulate commerce among the several states.” They first examined the word “commerce” which meant more than just articles of interstate trade but also, how the articles will navigate among the states (“McBride, “Landmark Cases”). This is where the U.S. Supreme Court ruled that the Commerce Clause states that the federal government has the power to govern the interstate commerce among several states (“McBride, “Landmark Cases”). The decision invalidated the monopoly that the New York Legislature granted to Livingston, Fulton and especially to Ogden (McBride, “Landmark Cases”). As the result of this ruling, in-state licensing on waterways ended and competition was encouraged. This delighted Vanderbilt. This ruling will later benefit Vanderbilt when he leaves Gibbons to start his own steamboat business n 1829

In Chapter 10 the book discussed about the Jacksonian Era. During the Jacksonian Era there were several events and policies that occurred that lad the United States to major changes in our government and economics. The Jacksonians wanted to democratize the United States political procedure and try to grow the U.S. economic opportunity for those that would be seen as the “common man.” One of the events to have occurred during the Jacksonian Era was the Second Bank of the United States. The Second Bank of the United Sates was a national bank authorized by Congress, which became the largest business in the nation, which produced a stable currency. During the Jacksonian Era not only was there economic change, but there was territorial change.

C). This Act completely cut off commerce with foreign nations until the British and the French repealed their trading restrictions on neutral shippers. As a result the American export trade and its profits dried up. Many people deemed this Act unconstitutional; the constitution only grants congress the power to regulate commerce, it does not however state that they have the power to completely cut it off. This by itself contradicts everything Jefferson stood up for. Albert Gallatin, one of the best financial minds in the Republican Party, convinced Jefferson that the Bank of the U.S. was essential for financial stability. Although the creation of the Bank of the U.S. reduced the nation’s debt from 83 million in 1800 to 57 million by 1809 , the creation in its self shows a great deal of broad constructionism. Although the bank was a reasonable means of carrying out powers related to taxation and the borrowing of funds, nowhere in the constitution does it state that congress has the power to charter a bank. John Randolph, a Republican congressman from Virginia, claimed that “this government (Jeffersonian) created and gave power to congress to regulate commerce and equalize duties in the whole of the U.S, and not to lay a duty but with a steady eye to revenue”. What John Randolph was trying to say was that

Jefferson commented on these events long after his passions over them had cooled. Indeed, by 1818 the first Bank of the United States had come and gone. He felt that the actions of the speculators for the sole purpose of personal greed were reprehensible, and that the architect of the situation (Hamilton) was very much responsible for the fleecing of the public.

During the Jacksonian period of 1824-1848, America had great economic development that played a role in making this period known as the “common man,” live up to its expectations. The Bank War was one of Andrew Jackson's many attempts to lower the power of the federal government. The Bank of the United States was ran by Nicholas Biddle, and issued federal deposits, credit and bank notes. However, the main issue was that it restrained the power of state banks. The soft-money and hard-money were two groups, that opposed the Bank. The

With the Jackson administration into office, the Second Bank of the United States became threatened. President Jackson had a private prejudice that wasn’t party policy (Schlesinger 74). He hated banks, all banks, but he especially hated the Second Bank of the United States. He viewed all bankers as “little more than parasites who preyed upon the poor and honest working people of America” (Roughshod 2). The reason for his hatred most likely stemmed from his near ruin as a businessman (land speculator, merchant, and slaver trader) when in the 1790s he accepted some bank notes that turned out to be worthless. From then on, he never trusted anything but hard money, or specie (Roughshod 2).

Nicholas Biddle proved great opposition to President Jackson. He wanted to re-charter the National Bank; however, many people were against Biddle’s decision. This was particularly true of people in the west. They were still wary of a national bank, after the Panic of 1819, which involved mishaps in land speculation. Jackson shared the predominately western opinion that several small banks would be a better service to the nation than one, large bank would. A major problem with a national bank would lie in it’s willingness only to make loans to the wealthy. This would be of no use to the middleclass. Jackson would not allow Biddle to gain any more power than he already had.

During World War II, propaganda was everywhere. It was seen in television and posters. Posters were popular forms as they were colorful, creative, and often portrayed the artists view and concerns on the war, and movies showed the same thing. American propaganda created false images to make people scared of enemies overseas. Fascist and communist nations’ propaganda contained racist and misleading information to dehumanize the enemy and create hatred toward them in order to promote a communist government.

The First Bank of United States – 1791 to 1811. Mr. Hamilton urged Congress to adopt the model he had come up with, which included one national bank that would hold the federal government’s deposits and would lend to the government and business. Though there was much opposition, the proposal was accepted but the bank’s charter was given a 20 year limit. The bank, known as First Bank or Bank of United States, helped to bring the economy of the country together. However, it was a private institution where foreigners owned 70 percent of the bank and this concerned the citizens of the United States. When the charter was up for renewal it was rejected and the bank was closed in 1811. ("First Bank of the United States" 1-16)

In addition to saving the integrity of the Federalist-dominated Supreme Court in the case of Marbury v. Madison, John Marshall also promoted certain Federalist principles, including the idea of a strong national government. From the years when the Constitution was being created, Alexander Hamilton fought for the creation of a national bank since he believed it was “necessary and proper” for the growth and development of the United States (“The Marshall Court”). As Hamilton and the Federalist Party had hoped, a national bank was created and one of its branches was placed in Baltimore, Maryland. State legislators from Maryland were not satisfied with the progress the bank was making because the negligent behavior of its bank officials was bringing the bank under (Newmyer, 295). To save their citizens from having to deal with the bank’s faulty leadership, the legislators attempted to drive the branch out of the state by placing a tax on all the banknotes issued by the bank. When the tax was purposely left unpaid, Maryland sued the cashier of the bank--James McCulloch. In the state courts, Maryland won its case,

The creation of the first national bank in the United States was of utmost importance in setting precedence for how much power the constitution actually grants the government. The debate over whether to create a national bank raised many questions over the constitution that hadn’t been tested before. It also raised questions about what the government can do when the constitution has no written clause on a certain subject. In looking at the arguments from Alexander Hamilton, James Madison, and Thomas Jefferson regarding a national bank, people can find out more about how some of the leading founders of the Constitution wanted to see the United States government run.

However, the state of Maryland tried to block the activity of the national bank by imposing tax to all the notes that were issued. The branch manager of the bank in Baltimore refused to pay taxes and lawsuits were filed in the Maryland Court. However, the case was brought up to the U.S Supreme Court as the Constitution did not subjectively describe that Federal Government had the authority to establish a bank. The U.S Supreme Court led by Chief Justice John Marshall ruled out the case that acknowledges that the Congress has the rights to establish a national bank under Article 1 Section 8 in the American Constitution. This shows that the US Constitution was vaguely described and gave the Congress an insight to pass laws as long as it is within the Constitution. However, this gave the Federal Government to create the mentality to indirectly gain more power which restricts the States sovereignty.