In the case of Eyster v. Centennial Board of Finance, the Supreme Court of the United States was asked to decide whether a state-created board of finance had the authority to issue bonds without the approval of the state legislature. The board of finance was created by the state of Pennsylvania to manage the finances of the Centennial Exposition of 1876. The board had issued bonds to finance the Exposition without the approval of the state legislature. The Supreme Court held that the board of finance did not have the authority to issue bonds without the approval of the state legislature. The Court reasoned that the board was created by the state legislature and was subject to its control. The Court noted that the state legislature had the power to create and control the board, and that the board was not authorized to act independently of the legislature. The Court also held that the bonds issued by the board were invalid because they had not been approved by the state legislature. The Court noted that the bonds were issued without the approval of the state legislature and were therefore not binding on the state. The Court concluded that the bonds were invalid and could not be enforced against the state.

In Eyster v. Centennial Board of Finance, the Supreme Court was asked to decide whether a state statute that allowed for the issuance of bonds by a county board of finance in order to fund public works projects was constitutional. The majority opinion held that it was not unconstitutional and thus upheld the statute. However, Justice Field dissented from this decision on two grounds: firstly, he argued that such an act constituted special legislation which violated both Article I Section 10 Clause 1 and Amendment XIV; secondly, he argued that allowing counties to issue bonds without voter approval would lead to financial mismanagement as there were no checks or balances in place against potential abuse or misuse of funds. He concluded his dissent by stating "The power here assumed is one which should be exercised only with great caution."