The German Bank of Memphis v. United States case in 1892 revolved around the issue of taxation on national banks and their shares. The German Bank of Memphis, a state bank, argued that it was unconstitutional for its shareholders to be taxed by both federal and local governments under the National Banking Act. They claimed this constituted double taxation which violated the principle of equal protection under the law as stated in the Fourteenth Amendment. However, the Supreme Court ruled against them stating that there was no violation since all shareholders were treated equally regardless if they owned shares in a state or national bank; both types were subject to dual taxations - one at federal level based on share value and another at local level based on property value.

In the dissenting opinion for German Bank of Memphis v. United States, Justice Brewer argued that the majority's decision was inconsistent with previous rulings and principles of equity. He contended that a bank should not be held liable for taxes on bonds owned by its customers but held in trust by the bank. According to him, this interpretation would unfairly penalize banks for performing a service they were obligated to provide as trustees. Furthermore, he pointed out inconsistencies between this case and earlier decisions where corporations were not taxed on their total assets but only on their net income or profits. He also criticized the majority's reliance on an 1864 statute which had been repealed before it could have applied to this case.