Name Instructor Course Date The Regulatory State and the Mixed Economy in the Golden Age of 19th Century American Legal History In relation to the American legal history much had to be made in order to restructure the legal system to suit people. In the past, we have had of cases that were ruled badly, but later of appeals that reversed the judgments…
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This paper is going to talk about the American legal history in terms of regulating commerce while referring to landmark decisions that reshaped it (Hale 56). In 1824, the United States Supreme Court came up with a decision that states could interfere with any power of the Congress in the regulation of interstate commerce. This was a legislative enactment put forward to hinder states from interfering with the government policies affecting all states. At around the same time, the state of New York had decided to authorize steamboat operation in its water run by them. This was an act of monopoly and was upheld by the state chancery court. It is then that the Supreme Court ruled out that competing steamboat operators had to be protected by the terms put forward by possessing federal license requiring them to engage in that trade along the coast region. That decision was a major lead by the government in controlling state commerce and removing monopoly control by individual states (Catterall & Henry 12). Maryland in 1819 enacted a statute that imposed tax on all existing banks that operated in Maryland and not chartered by the state. The statute stated that all such existing banks were prohibited from issuing notes upon stamped paper which was issued by the state. Also, the statute set forth a given fee that was supposed to be paid for the paper plus it established penalties for violating it. Maryland came with these policies in order to govern commerce within its own state (Richard 23). The Second Bank of the United States became established in 1816 following an act of congress (Catterall & Henry 15). McCulloch, a cashier at the Bank of the United States in Baltimore branch decided one time to issue bank notes which did not comply to Maryland law. Hence, Maryland sued McCulloch for not paying taxes due according to Maryland statute and McCulloch contested for the constitutionality of that given act (Richard 23). From the case, it was found out that the Congress had the power under the formed constitution to incorporate a given bank pursuant according to Article 1 section 8. In addition, it was found out from the ruling that the State of Maryland did not have the necessary power to tax a given institution that was created by the Congress according to the formed constitution. The decision by the Supreme Court in favor of McCulloch after he appealed to them proved that the Commerce clause was powerful in making such decision (Hale 86). In as much as Maryland had some rights in imposing laws in its own state, it proved that the Congress also had some powers in influencing some major decisions in the Court system. Hence, the government in place though usually limited in its power, but got supreme authority when it comes to issues of implementing laws that had been made under the constitution. There is basically nothing in the constitution that excludes implied or incidental powers. The government at the end usually thrives to remain legitimate in the way it handles issues that are within the constitution scope. Therefore, the power of establishing a given corporation is not usually a distinct sovereign power of a given government, but indicates that the means for carrying into effects some other powers that are sovereign. The government is obliged to exercise its
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