In McCullock v.

Maryland, one of the leading cases in the history of United States, Congress
developed second bank in the United States. A branch of this bank was opened in Baltimore. The
State Legislature of Maryland passed a law to tax all the banks who were not developed by the
State, as they were not comfortable with the fact that the branch of the Bank developed by the
Congress was competing with the banks which were established by the Maryland State. This Act
was challenged by the Bank. The Supreme Court, headed by Chief Justice Marshall,
unanimously held that although the Constitution did not expressly have mentioned the setting
up of a bank or a similar corporation by the Congress, there is an implicit, implied and
unenumerated powers that the Congress have under the Constitution, which gave Congress
power to make laws which are necessary and proper to carry out the specific functions
conferred on Congress. Therefore Congress had the power to setup corporations like banks
under the commerce clause. On the issue of taxation, the court held that the states have no
power, by taxation or otherwise, to retard, impede, or control the laws of the federal
government, and thus the law imposing a tax on the Bank of the United States, is
unconstitutional and void.
In 1824, another matter arose in relation to tax imposition by the State and the Federal
Government. In Gibbons v. Ogden, a licence was granted to Ogden by the New York authorities
to operate steam-powered ferryboats between two rivers. Gibbons already had a coasting licence
granted by the federal government but he did not have any licence granted by the New York
authorities. Ogden filed for an injunction against Gibbon. In this case, Justice Marshall took a
broad view of the term commerce, and re-established the supremacy of the laws made by
federal government over the state laws. He held that a law made by the State of New York to
grant licence is in collision with the privilege which has been granted to the Federal Government
under the Commerce Clause.