in 1816 legislation gave the second bank of the united states the power to
Second Bank of the United States The essential function of the bank was to regulate the public credit issued by private banking institutions through the fiscal duties it performed for the U.S. Treasury, and to establish a sound and stable national currency.[11][12] The federal deposits endowed the BUS with its regulatory capacity.[5][13]
Necessary and Proper Clause This clause, as justification for the creation of a national bank, was put to the test in 1819 in the case of McCulloch v. Maryland,[6] wherein the state of Maryland had attempted to impede the operations of the Second Bank of the United States by imposing a tax on out-of-state banks, of which the Second Bank of the United States was the only one. The court ruled against Maryland, and Chief Justice John Marshall, Hamilton's longtime Federalist ally, wrote the opinion, which stated that while the Constitution did not explicitly give permission to create a federal bank, it conferred upon Congress an implied power to do so under the Necessary and Proper Clause so that Congress could realize or fulfill its express taxing and spending powers. The case reaffirmed Hamilton's view that legislation reasonably related to express powers was constitutional. Marshall wrote: