In the 1930 case of Abie State Bank v. Bryan, Governor of Nebraska, et al., the U.S. Supreme Court was tasked with determining whether a state law that imposed an excise tax on banks violated the Fourteenth Amendment's Equal Protection Clause. The plaintiff, Abie State Bank, argued that this tax unfairly targeted banks while exempting other financial institutions from similar taxation and thus constituted discriminatory legislation. However, the court ruled in favor of Bryan and upheld Nebraska’s right to impose such a tax on its banking institutions. It held that states have broad powers under their police power to regulate industries within their borders including imposing taxes; as long as they do not violate specific federal laws or constitutional provisions. In this instance, it found no violation of equal protection since there was enough difference between types of financial institutions for them to be treated differently by state law.

In the dissenting opinion for ABIE STATE BANK v. BRYAN, Justice Stone argued that the Nebraska law in question did not violate due process rights under the Fourteenth Amendment. He contended that it was within a state's power to regulate banking and protect depositors' interests by requiring banks to contribute to a depositors' guarantee fund. The majority had ruled this requirement as unconstitutional because it could potentially force solvent banks into insolvency without compensation, thus violating their property rights without due process of law. However, Justice Stone believed that such regulation was necessary for public welfare and should be considered valid unless proven otherwise beyond reasonable doubt - which he felt hadn't been done in this case.