According to the decision, the state of Maryland could not tax the government Banks because

1 answer:

8 0

In 1819, the United States faced a serious economy crisis known as the Panic of 1819. The crisis partially resulted from the Bank of the United States, as well as state and local banks, extending credit to too many people. These people primarily used the loans to purchase federal land in the Western United States. As the economic downturn worsened, the Bank of the United States continued to demand repayment for loans. The various banks' actions resulted in the Banking Crisis of 1819.

Because of the National Bank's actions, money became scarce, making it even more difficult for people to pay their debts. Several states, including Maryland and Ohio, implemented taxes on the Bank of the United States. These states hoped that, by taxing the banks, money would then enter the grasp of state governments. The state governments could then make loans to their citizens, thus relieving the money shortage.

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