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Why did Texas face an economic depression in the late 1830s?

Texas economy suffered greatly when the prices of their exports decreased and the prices of their imports increased. This change in price was caused by the Panic of 1837 that originated from the U.S.

Explanation:

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b) a state law could be declared illegal if it contradicted the constitution.

explanation:

the conflict of this case originated when james w. mcculloch, a cashier of the baltimore branch of the second bank of the united states that the congress had chartered in 1816, refused to pay a tax imposed by the maryland state.

in the case, the state of maryland appealed that the establishment of a second bank was unconstitutional since the constitution didn't say anything about granting that power to congress. however, the case determined that even if such right wasn't specifically stated in the constitution, it was part of the "implied powers" of the government enunciated in article i, section 8.

the case also eliminated maryland's legislation to impose taxes to a national bank, asserting that even though the states retained the power of taxation, the constitution's laws are supreme and can not be controlled by the states, therefore, if a state law contradicts the constitution, it should be declared illegal.

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