Osborn v. Bank of the United States
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''Osborn v. Bank of the United States'', 22 U.S. (9 Wheat.) 738 (1824), was a case set in the Banking Crisis of 1819, when many banks, including the Second Bank of the United States, demanded repayment for loans that they had issued on credit that they did not have. This led to an economic downturn and a shortage of money. In 1819,
Ohio Ohio () is a state in the Midwestern region of the United States. Of the fifty U.S. states, it is the 34th-largest by area, and with a population of nearly 11.8 million, is the seventh-most populous and tenth-most densely populated. The sta ...
passed a law that put a tax on the Bank of the United States on the theory that taxing a bank would allow the state government to receive and distribute the scarce money. On September 17, 1819, Ohio Auditor Ralph Osborn was given permission to seize $100,000 from a branch of the Bank of the United States. However, his agents mistakenly took $120,000 although the extra $20,000 was promptly returned. The bank chose to sue Osborn for the return of the additional $100,000, and a federal court ruled that Osborn violated a court order, prohibiting the taxing of the bank. Osborn argued that he had never been properly served with the order but still had to return the money. A problem arose when Osborn could pay back only $98,000, as the other $2,000 had been used to pay the salary of Osborn's tax agents. In 1824, the Supreme Court ruled in favor of the Bank of the United States, ordering the return of the disputed $2,000.


See also

* List of United States Supreme Court cases, volume 22


Notes


External links

* * United States Supreme Court cases United States Supreme Court cases of the Marshall Court United States Constitution Article Three case law United States Eleventh Amendment case law 1824 in United States case law 1824 in Ohio Legal history of Ohio {{SCOTUS-case-stub