In National Bank v. Bank of Commerce, the Supreme Court of the United States was asked to decide whether a national bank could sue a state bank in federal court. The case arose when the National Bank of St. Louis, Missouri, sued the Bank of Commerce of St. Louis in the Circuit Court of the United States for the Eastern District of Missouri. The Bank of Commerce argued that the National Bank had no right to sue in federal court because it was a national bank and the Bank of Commerce was a state bank. The Supreme Court held that the National Bank had the right to sue the Bank of Commerce in federal court. The Court reasoned that the National Bank was created by an act of Congress and was therefore a federal instrumentality. As such, it was entitled to the same privileges and immunities as any other federal instrumentality, including the right to sue in federal court. The Court also noted that the National Bank was subject to the exclusive jurisdiction of the federal courts, and that the Bank of Commerce was not. The Court concluded that the National Bank had the right to sue the Bank of Commerce in federal court, and that the Circuit Court of the United States for the Eastern District of Missouri had jurisdiction to hear the case.

In National Bank v. Bank of Commerce, the Supreme Court was asked to decide whether a national bank could be held liable for an overdraft on another bank’s account. The majority opinion found that the national bank had no liability in this case because it did not have any knowledge or control over the other banks’ accounts and transactions. Justice Field dissented from this decision, arguing that a national bank should be held responsible for its own negligence when dealing with another banking institution's funds. He argued that if a national bank is careless in handling money belonging to others, then it should bear responsibility for any losses incurred as a result of its negligence. Furthermore, he reasoned that since Congress has granted certain powers and privileges to these institutions which are not available to private individuals or corporations, they must also accept some degree of responsibility when those powers are misused by their agents or employees.