American Government   4.3 Developing FederalismSECTION 4 
DRILL: Extradite & Interstate Compacts
Extradite: to return runaway criminals for trial.
Interstate Compacts: agreement or contract between states

LESSON OBJECTIVE
Students will examine the views and growth of federalism by reading excerpts and researching information from today’s lesson.

I. States’ Rights Versus Nationalists 
A. The states’ rights position is that states and its powers should be defined.
B. The nationalist position is that the national government and that its power should be expanded to carry out the people’s will.
II. Growing National Government 
A. The flexibility of the Constitution has allowed the Supreme Court and the president to stretch the power of the national government to meet the nation’s growing needs.
B. The power to wage war has expanded the federal government’s power.
C. Supreme Court decisions have stretched Congress’s power to regulate commerce.
D. Congress has used its taxing power to increase the authority of the national government.
III. Federal Aid to the States 
A. Federal aid to the states has greatly increased since the 1950s; federal conditions for giving aid have been added.
B. In recent years, some presidents and congressional leaders have moved to shift the balance in federalism to return more authority to state and local governments.
Odds & Ends
1. To favor local action is considered a states’ rights position
2.  A nationalist position is to favor federal action 
3.  An example of a nationalist’s program is social welfare
4.  Regulating of interstate commerce is an example of expanding the national government’s powers  
5. Richard Nixon stared New Federalism
6. Chief Justice Roger B. Taney was a supporter of the states’ rights position.
7. Franklin D. Roosevelt was a supporter of the nationalist position.
8. Congress passed the Civil Rights Act of 1964 using its Constitutional authority to regulate commerce.	
9. The Sixteenth Amendment gave Congress the right to tax incomes.
10. The relationship between federal and state governments is affected by  policies of the president and Congress.
American Government   4.3 Developing Federalism 4 
1. B 			6. B
2. E 			7. D
3. A			8. A
4. C 			9. C
5. D 			10. D		

11. Nationalists believe that the people, not the states, created the national government.
12. Most federal programs have conditions attached that control state governments’ use of aid.

Gibbons v. Ogden, 1824
1. Each state, for example, could impose taxes on the company’s purely in-state business, but the federal government could set safety standards for vehicles using the interstate highway system.
2. Unless he defined navigation as a part of commerce, he would not have been able to deal with the question of interstate commerce in the United States.
3. Jackson said Marshall expanded federal power over commerce because the Gibbons decision opened the way for Congress to regulate interstate commerce, which now constitutes the great bulk of commerce in this country. Marshall also laid the groundwork for regulating activities that are indirectly, as well as directly, involved in interstate commerce.
4. Both cases gave the federal government powers than are not spelled out literally in the Constitution; thus both decisions diminished states’ powers and increased those of the federal government.
BCR 5. I would agree with the Gibbons decision, the federal government is needed as a power greater than the states to make decisions about issues involving more than one state. 
If I opposed the Gibbons decision, a state has the right to regulate business within its boundaries, so that the federal government should not have interfered with New York’s right to assign an exclusive ferryboat license for a New York port. 

Summary: In today’s lesson we researched information, examined the views and growth of federalism in the United States. 

Homework: States’ Rights & Nationalism
States’ Rights: favors local action
Nationalism: favors federal action

Name ____________________________________________Class ___________ Date______________
American Government   4.3 Developing FederalismSECTION 4 

Match each item in Column A with the items in Column B. Write the correct letters in the blanks. 
Column A
______1. favors local action
______2. favors federal action
______3. nationalist’s program
______4. expanded national government’s powers
______5. Richard Nixon	Column B
A. social welfare
B. states’ rights position
C. regulation of interstate commerce
D. New Federalism
E. nationalist position	

In the blank at the left, write the letter of the choice that best completes the statement or answers the question. 
______6. This man was a supporter of the states’ rights position.
A. David Levitt 				C. Franklin D. Roosevelt
B. Chief Justice Roger B. Taney 		D. Richard Nixon
______7. This man was a supporter of the nationalist position.
A. Chief Justice Roger B. Taney 		C. George Bush
B. Ronald Reagan 				D. Franklin D. Roosevelt
______8. Congress passed the Civil Rights Act of 1964 using this Constitutional authority.
A. commerce 					C. protection of states’ citizens
B. taxing power				 	D. war powers
______9. This provision gave Congress the right to tax incomes.
A. the Preamble of the Constitution 		C. Sixteenth Amendment
B. the Bill of Rights 				D. a presidential order
______10. The relationship between federal and state governments is affected by
A. Article I. 					C. income tax levels.
B. interstate commerce. 			D. policies of the president and Congress.

11. What arguments are made by supporters of the nationalist position? 

12. Explain why federal aid to the states has increased the authority of the national government. 

4.3 Supreme Court Case: Regulation of Interstate Commerce - Gibbons v. Ogden, 1824
Background of the Case 
In 1798 the New York legislature gave Robert Fulton a monopoly for steamboat navigation in New York. In 1811 Fulton’s partner, Robert Livingston, assigned to Aaron Ogden an exclusive  license to run a ferry service on the Hudson River between New York and New Jersey—a very profitable business. Seeking to take advantage of this flourishing trade, a competitor, Thomas Gibbons, secured a license from the federal government to operate a ferry between Elizabethtown, New Jersey, and New York City. Claiming that his monopoly rights were being infringed, Ogden obtained an injunction in a New York state court forbidding Gibbons’s boat from docking in New York. (An injunction is an order by a court prohibiting a person or a group from carrying out a specific action.) Gibbons appealed the state court’s decision to the United States Supreme Court.
Constitutional Issues 
The Constitution did not make clear what was meant by interstate commerce or the extent to which it could be regulated. At the time of this case in 1824, New York had closed its ports to vessels not owned or licensed by a monopoly chartered by the state. In retaliation, other states passed similar laws that limited access to their ports. The United States attorney maintained, that the country faced a 

4.3 Supreme Court Case: Regulation of Interstate Commerce - Gibbons v. Ogden, 1824
commercial  “civil war.” In the absence of a clear statement of what is meant by interstate commerce, how did the federal government have the power to intervene? 
The Gibbons v. Ogden case presented the Supreme Court with the first opportunity to consider the ramifications of the commerce clause contained in Article I, Section 8 of the Constitution. This clause gave Congress the power “to regulate commerce with foreign nations, and among the several States, and with the Indian tribes.” Several constitutional questions were involved in the case, revolving around an interpretation of the commerce clause: 
The Supreme Court’s Decision 
The Court held in Gibbons’ favor. Chief Justice John Marshall wrote that commerce “describes the commercial intercourse between nations, and parts of nations, in all its branches, and is regulated by prescribing rules for carrying on that intercourse. The mind can scarcely conceive a system for regulating commerce between nations which shall exclude navigation. 
Case Analysis
Marshall applied the same reasoning to commerce between states. In fact, he noted, the United States government had always regulated navigation. “All America understands,” he wrote, “and has uniformly understood the word ‘commerce’ to comprehend navigation . . . .”
Thus the Court held that “a power to regulate navigation is expressly granted as if that term had been added to the word ‘commerce.’ ”
Marshall now turned to the meaning of “among,” as in “among the several states.” He reasoned that since “among” means “intermingled with,” “commerce among the states cannot stop at the external boundary line of each state but may be introduced into the interior.” Congress had no power over commerce which was confined to one state alone, but that power was in full force as soon as a state’s boundary line had been crossed. And the power to regulate must necessarily follow any commerce in question right across those boundaries.” 
Marshall concluded that, like other congressional powers, the power to regulate commerce is unlimited so long as it is applied to objects specified in the Constitution. The case also raised the question as to thether Congress’s power to regulate is exclusive. If it is, then a state would be prevented from making its own commerce regulations. Marshall chose not to resolve this question. Instead, he wrote that in the Gibbons case there was a conflict between the state’s law and a federal statute. “In every such case, the act of  Congress . . . is supreme; and the law of the state. . . must yield to it.” Gibbons’ right to operate ferry service in competition with Ogden was therefore upheld.
By broadening the meaning of interstate commerce, Marshall laid the groundwork for including not only such clearly interstate actives as railroads and pipelines, but also the minimum wage regulation and  prohibition of child labor. Robert Jackson, a Supreme Court justice who served in the mid 1900s, was thus correct when he declared, “Chief Justice Marshall described the federal commerce power with a breadth never exceeded.”
DIRECTIONS: Answer the following questions on a separate sheet of paper. 
1. If you operated a trucking service between San Francisco, California, and Portland, Oregon, could you be subject to regulation by either or both of the states and the federal government? Explain.
2. Why was it necessary for Marshall to take the trouble to explain why navigation should be considered as part of commerce?
3. Explain in what way Justice Jackson’s characterization of Marshall’s Gibbons opinion was correct.
4. In what way is Marshall’s ruling in the Gibbons case consistent with his other decisions, such as
McCulloch v. Maryland, that related to federal versus state powers?
5. Do you agree with Marshall’s ruling that Gibbons had a right to compete with Ogden’s ferry line?
Give reasons for your answer.
CASE STUDY 4

In your own words, summarize today’s lesson.