[2] 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 In a 5–2 opinion, Chief Justice Salmon P. Chase held that this use of Congress's taxing power was authorized.

And it is settled by the uniform practice of the government and by repeated decisions, that Congress may constitutionally authorize the emission of bills of credit.

To the same end, Congress may restrain, by suitable enactments, the circulation as money of any notes not issued under its own authority.

Without this power, indeed, its attempts to secure a sound and uniform currency for the country must be futile.