William_T._Bianco,_David_T._Canon]_American_Polit

78 Chapter 3Chapter 3 || Federa lismFedera lism

new government for its first 12 years and favored strong national power. One of their

strongest allies was Chief Justice John Marshall, who wrote several landmark Supreme

Court decisions that enhanced the power of the national government. The Federalists’

opponents, the Democratic-Republicans, led by Thomas Jefferson and James Madison,

favored state power, or, as it came to be known, dual federalism. Dual federalism, as

we will discuss, was the guiding principle of Marshall’s successor as chief justice, Roger

Taney. Table 3.1 highlights several important decisions resolved during Marshall’s and

Taney’s tenures on the Court.

Establishing National Supremacy The first confrontation came when the Feder-

alists established a national bank in 1791, followed by a second national bank in 1816. At

that time, the state of Maryland, which was controlled by the Democratic-Republicans,

tried to tax the National Bank’s Baltimore branch out of existence. However, the head

cashier of the bank refused to pay the tax, creating a conflict that sent the case to the

Supreme Court. In the landmark decision McCulloch v. Maryland (1819), Marshall’s

Court held that even though the word “bank” does not appear in the Constitution,

Congress’s power to create one is implied through its relevant enumerated powers—

such as the power to coin money, levy taxes, and borrow money. The Court also ruled

that Maryland did not have the right to tax the bank because of the Constitution’s

national supremacy clause.

A few years later, Marshall’s Court held in Gibbons v. Ogden (1824) that Congress

has broad power to regulate interstate commerce. The ruling struck down a New York

law that had granted a monopoly to a private company operating steamboats on the

Hudson River between New York and New Jersey. By granting this monopoly, New

York was interfering with interstate commerce, a power reserved to the Congress by

the Constitution. Even in the modern era, this ruling underlies many of the federal

government’s regulations on businesses, which are based on the expectation that

virtually any commercial activity will involve buying and selling across state lines.

dual federalism

The form of federalism favored by

Chief Justice Roger Taney, in which

national and state governments are

seen as distinct entities providing

separate services. This model limits

the power of the national government.

TA B L E Early Landmark Supreme Court Decisions on Federalism

3.1

Case Holding and Significance for States’ Rights Direction of the Decision

Chisholm v. Georgia (1793) Held that citizens of one state could sue another state; led to the Eleventh Amendment, which prohibited such lawsuits. Less state power

McCulloch v. Maryland ( 1819) Upheld the national government’s right to create a bank and reaffirmed the idea of “national supremacy.” Less state power

Gibbons v. Ogden (1824) Held that Congress, rather than the states, has broad power to regulate interstate commerce. Less state power

Barron v. Baltimore (1833) Endorsed a notion of “dual federalism” in which the rights of a U.S. citizen under the Bill of Rights did not apply to that same person under state law. More state power

Dred Scott v. Sandford (1857)

Sided with southern states’ view that slaves were property and ruled

that the Missouri Compromise violated the Fifth Amendment, because

making slavery illegal in some states deprived slave owners of property.

Contributed to the start of the Civil War.

More state power

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