Full case name Veazie Bank v. Fenno Date decided 1869 | Citations 75 U.S. 533 (more) | |
Prior history Appeal from the Circuit Court of Maine Majority Chase, joined by Grier, Clifford, Swane, Miller, Field Dissent Nelson, joined by Davis Similar Hylton v United States, Pollock v Farmers' Loan & Tr, Swift & Co v United States | ||
Veazie Bank v. Fenno, 75 U.S. 533 (1869), was a United States Supreme Court case.
Contents
Background
Congress passed an act on July 13, 1866, which imposed a 10 per cent tax on notes of private persons, state banks, and state banking associations.
The Veazie Bank paid the tax under protest, alleging that Congress had no power to pass such an act.
The Circuit Court of Maine, in which action was brought to recover the amount of the tax paid, being divided in its opinion, the case was brought to the Supreme Court upon the question of the constitutionality of the act
(1) That it was a direct tax and had not been apportioned according to population (2) That the act imposing the tax impairs a franchise granted by the State, and that Congress has no power to pass any law with that intent or effect.Opinion of the Court
In a 5–2 opinion, Chief Justice Chase held that this use of Congress's taxing power was authorized.
Congress had just undertaken to provide for a uniform currency for the country. To protect the newly established national bank from undue competition for the state banks, Congress was using its power indirectly when it could have used a direct method. Congress had to protect the newly established bank notes and restrain the notes of the state banks as money. Authority to do this arose from its power to regulate the circulation of coin.