The Case Marbury V. Madison

857 WordsJul 4, 20164 Pages
In the early years of the Republic, states came often in front of the Supreme Court to resolve disputes of issue of the supremacy of the National Government. In 1803 the case Marbury v. Madison held that Congress cannot pass laws that are contrary to the Constitution, and it is the role of the Judicial System to interpret what the Constitution permits. The discrepancies between the Federal Government and the States occurred often, as the States were not happy to give up their power to the Federal Government. Late 1810 raised the issue of the financial stability of the states, banks were comprehended as the symbol of power and privilege, and were despised by the vast majority of the people. During the Anglo-American War in 1812, many banks collapsed under the tough economic atmosphere. Survival Banks chartered by the states were also not in good position. They lacked sufficient credit to support during the War-time and in the post-war situation also. In 1811, the charter of the First Bank of the United States has been expired, and the federal government found itself not able to finance the war. In 1816, Congress accorded a charter to the Second Bank of the United States and contributed with one-fifth of the bank’s capital of $35 million. Before the Federal Governemnt chartered the Second Bank of the United States, and before a single form of currency was set, the state chartered banks had less government restrictions and were able to speculate on their bank policies. They

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