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  • National Bank was first created in 1921 and was chartered for 20 years until the senate voted not to renew the charter 
  • In 1819 the second national benk was created to help pay for debts created by the war of 1812
  • The bank was placed in Maryland which made the state and competing banks in the area unhappy
  • The state of Maryland imposed a tax of $15,000 a year on the bank which was refused to pay by cashier James McCulloch
  • The case went to the supreme court to determine who ultimatly hade power
  • the court decided that through section 1 article 8 the national bank was both necessary and proper, and had power over the states taxes
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