The Granite State was a case heard before the United States Supreme Court in 1865. The dispute centered around whether or not New Hampshire had the right to tax certain bonds issued by Massachusetts. At issue were two types of bonds: those that were issued prior to 1851 and those that were issued after 1851. New Hampshire argued that it had the right to tax both types of bonds, while Massachusetts contended that only its own citizens should be taxed on these securities. After hearing arguments from both sides, the court ultimately ruled in favor of New Hampshire's position and held that it could impose taxes on all bondholders regardless of their state citizenship status. This ruling established an important precedent for states' rights when it comes to taxation matters and has been cited as authority ever since then whenever similar disputes arise between different states over taxation issues involving interstate commerce transactions or other activities taking place across state lines.

In The Granite State, the Supreme Court was asked to decide whether a state law that prohibited non-residents from engaging in certain commercial activities within its borders violated the Commerce Clause of the Constitution. Justice Field wrote a dissenting opinion arguing that states have an inherent right to regulate commerce within their own borders and should not be subject to federal interference. He argued that while Congress has authority over interstate commerce, it does not have power over intrastate or local trade and therefore cannot interfere with state laws regulating such activity. Furthermore, he argued that if Congress could override state regulations on this matter then it would lead to an unconstitutional expansion of federal power at the expense of states' rights. In conclusion, Justice Field believed that allowing Congress to interfere with intrastate commerce would violate both constitutional principles as well as long-standing legal precedent regarding states’ rights.