This case was a dispute between the Pittsburgh Locomotive and Car Works and the National Bank of Keokuk. The Pittsburgh Locomotive and Car Works had sold a locomotive to the National Bank of Keokuk, and the bank had paid for it with a check. The check was dishonored by the bank, and the Pittsburgh Locomotive and Car Works sued for the amount of the check plus interest. The Supreme Court held that the National Bank of Keokuk was liable for the amount of the check plus interest. The Court reasoned that the bank had accepted the check in good faith and had not been aware of any defect in the check when it was accepted. Therefore, the bank was liable for the amount of the check plus interest. The Court also held that the Pittsburgh Locomotive and Car Works was not entitled to any additional damages, such as attorney's fees or costs, because the bank had not acted in bad faith. The Court reasoned that the bank had acted in good faith and had not been aware of any defect in the check when it was accepted. Therefore, the bank was not liable for any additional damages.

In the case of Pittsburgh Locomotive and Car Works v. National Bank of Keokuk, the Supreme Court was asked to decide whether a bank could be held liable for failing to pay out on a check that had been fraudulently altered after it had left the hands of its maker. The majority opinion found in favor of the bank, holding that they were not responsible for any losses due to such alterations as they had no control over them once they were placed into circulation. However, Justice Field dissented from this decision arguing that banks should have some responsibility when it comes to preventing fraudulent checks from being paid out by their institution. He argued that banks should take reasonable steps towards ensuring only valid checks are paid out and if these steps are not taken then liability may lie with them in cases where fraud has occurred.