The Struggle Between State Power and National Power
For Hamilton, the institution of this Bank of the United States was entirely within Congress’s authority. And he hoped that the bank would foster economic growth, print and circulate paper money, and supply loans to the government. The federal government had no power to make this instrument; Hamilton was able to convince the reluctant president to sign the legislation.
After the bank’s charter expired in 1811, Jeffersonian Democratic-Republicans triumphed in obstructing its renewal. However, the financial hardships that plagued the authorities throughout the War of 1812, coupled with the fragility of the nation’s financial system. Many countries rejected the Second Bank, asserting that the government infringed upon the states’ jurisdiction.
A showdown between Maryland and the government arose when James McCulloch refused to pay a tax that Maryland had levied on all banks. The standoff increased two questions: Why did Congress have the authority to charter a national bank? Were nations permitted to tax property? In McCulloch v. Maryland, Chief Justice John Marshall contended that Congress could create a national bank. However, the Constitution did not authorize it.
The lender was an instrument that enabled the government to perform a number such as regulating interstate commerce, collecting taxes, and borrowing money.
Federalism in the USA has gone through several stages of development, during which the relationship between the state and national governments has diverse. Within their spheres, the two levels of government remained in the age of federalism. In policy areas, the federal government became active Throughout federalism. The 1970s ushered to decentralize policy administration.